Government ‘must act to ward off collapse of food and drink supply chain'

The food and drink supply chain is in danger of collapse and requires urgent support, industry bodies have said.

The downturn in demand from the commercial foodservice and hospitality industries, caused by the 10pm curfew and other restrictions, threatens the entire system, leaders have warned.

Bodies including the Federation of Wholesale Distributors, the Food and Drink Federation and UKHospitality said the threat will extend to the supply of food to care homes, prisons, schools and hospitals if support is not given.

To enable the survival of the sector, signatories have said the government must extend the furlough scheme in areas under Tier 2 (high), and Tier 3 (very high) restrictions; extend business rate relief to the wholesale sector; and issue discretionary grants to supply chains at risk of collapse.

The open letter reads: "The whole food and drink industry supply chain is committed to working with government to support its policy objectives both on health and the recovery. The above measures are essential to ensure continuity of critical public sector food and drink supply and the government must introduce them immediately."

Picture: Shutterstock