Trade credit insurer, Atradius, has reported a 79% increase in claims for late and failed payments in the food sector, amid national supply shortages of such basics as eggs and vegetables.
Companies that have traditionally operated on thin margins will be particularly vulnerable to volatile market conditions, the insurer asserted, but even the biggest players are being tested.
Atradius saw a 119% in claims from the agriculture sector, following a relatively subdued period in 2021 when government support was in place during the pandemic.
Georgios Panzaris, senior underwriter at Atradius, said: “It’s been a challenging few years for the food industry in the UK, and ongoing supply issues look set to continue as the sector battles with the quadruple threat of rising prices, ongoing fallout from Brexit and the pandemic, and bad weather conditions.
“The empty shelves shoppers are seeing have different root causes. Egg shortages are largely down to farmers being hit by the rising costs of feed, energy and labour, not to mention the largest avian flu outbreak we’ve ever seen, with under-supply at risk of persisting for months. Meanwhile vegetable producers are facing similar challenges alongside unfavourable weather conditions, with lower crop yields affecting supply."
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