Defra has been warned it would be a “disaster” if the food industry was to fall victim to energy rationing during the winter.
The Grocer has learned the threat to the supply chain from potential power shortages was raised during crisis talks with the government last week, before the announcement of the death of Queen Elizabeth II.
Speaking during the Tory leadership contest, PM Liz Truss said she would rule out energy rationing, although a government document published in August said in a “reasonable worst case scenario” businesses and consumers could face blackouts.
The EU has vowed to prioritise food production in the event of power shortages, with other European companies widely regarded as more exposed to shortages due to the cut-off of Russian gas because of the war in Ukraine.
However, industry leaders said they were concerned at the lack of planning by the UK government to safeguard the food supply chain.
“The food industry has to be one of the top industries when it comes to those who would be safeguarded against energy rationing,” said Rupert Ashby, CEO of the British Frozen Food Federation. “It would be a complete disaster.”
Ashby said he had received “no response” from Defra after asking for reassurance.
“These are discussions that need to be had.”
FWD CEO James Bielby said: “The government needs to ensure continuity of supply to the food and drink industry in the event of blackouts this winter as part of our critical national infrastructure. FWD has raised concerns about rationing the need to protect supply to ensure people have continued access to food and drink.”
Nick Allen, CEO of the British Meat Processors Association, described the possibility of blackouts as a “frightening scenario”.
“The last time this happened was in the 1970s and we didn’t even have the internet then. Imagine the impact now of rolling power cuts on the food supply chain.
“It’s absolutely unthinkable that it could happen.”
Dick Searle, CEO of the Packaging Federation, also called for urgent talks with the government on the issue. “I am old enough to have been managing a factory during the three-day week,” he said. “If there is rationing, the impact on the food chain today would be enormous.”
“Management of supply of energy is a massive and complex supply chain issue. It’s a huge logistic exercise.
“My big concern is that we are not sitting down and talking about this. Where is the planning and the talks with industry, who need to be involved in these decisions?
“If there is a genuine chance that there are energy shortages then we need these plans in place and the industry needs to be heavily involved.”
Provision Trade Federation director general Rod Addy said the threat of rationing was a major concern for companies alongside the cost of energy.
“Food businesses are not just concerned about the costs, but also whether energy rationing may be coming down the line,” said Addy. “Clearly this could potentially disrupt production and supply.”
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