Britain is undergoing a cost of living crisis. While on a personal level we are all grappling with the cost of energy and food increasing at astronomical rates, what does the cost increase mean for you as a food manufacturer?
Food inflation is at the highest it's been in 14 years. 2022 has been a particularly challenging year with the impact of supply chain shortages, commodity prices, and the war in Ukraine. After a relatively quiet summer, suppliers are looking at a challenging period as the financial squeeze gains momentum.
With the onset of the Holiday season, businesses of all kinds but especially small businesses will suffer as suppliers can not delay the increase in prices which will impact the cost of production. While this is true across industries, the food industry will definitely be impacted by it in the run-up to Christmas.
The dilemma in front of artisan food producers seems to be:
- Increase your food product prices but run a risk of being delisted by stockists or face a reduction in sales via eCommerce platforms; Or
- Closing niche product lines to reduce the cost of production and maximise resources to increase production for bestsellers
However we delay or offset the increase in costs, food inflation will affect all of us as food manufacturers, suppliers, service providers and end consumers.
NotaZone, our inventory management and food traceability platform enable food producers to forecast, plan and identify patterns which can be critical as you make business decisions. The platform integrates with third-party integrations such as Shopify, Xero, Quickbooks, DHL among others and can create reports to assist with your production and cost planning.
If you would like to know more about NotaZone, we offer free consultation and cost-effective plans to meet your unique needs, get in touch today!