Food manufacturers and suppliers have warned of food shortages that the country may face in the near future, writes Bloomberg.
The threat of food shortages is caused by several reasons. Among them, the rush on the eve of Catholic Christmas, a lack of storage space, the coronavirus pandemic and the upcoming final exit from the European Union (the transition period ends at the end of 2020).
London and Brussels have not yet reached an agreement on the terms of Brexit. If they are not achieved by the end of December, the UK will cease to be part of the common European market, which will lead to the introduction of customs borders between the country and the EU.
Against this background, suppliers of many goods, including food, are trying to build up stocks, which is fraught with overloading warehouses and transport routes. Many companies already note that the situation is much more serious than in the spring during the first wave of coronavirus, when they had a margin of safety.
Currently, warehouses are almost completely loaded with non-perishable products, which, together with many kilometers of traffic jams, poses a threat to the supply of goods of other categories. Market participants hope that the UK and EU authorities will find a way out and conclude a deal on terms acceptable to both parties.