Food Logistics In 2022
Despite the effects of the global COVID-19 pandemic beginning to withdraw, the state of the global logistics industry is still tricky to summarise. On one hand, restaurants are open again and experiencing greater-than-pre-pandemic levels of patronage. Customers are returning to bricks and mortar stores too: in greater droves than ever before, despite shortages. On the other hand, the astronomical disruptions to logistics resulting from COVID are still being felt: particularly, bottlenecks in supply chains. Rising inflation in Australia complicates the issue further (due to the soaring price of ingredients), as does other political tensions resulting in driver shortages and increased food safety measures.
One report identified that restaurant patronage levels are 123% higher than they were during pre-COVID times. ‘Lockdown logic’ has prompted local customers to show increased support for local businesses and turn one-off purchases into repeat visitations. Increased use of technology in the hospitality sector also means restaurants can now cater to customer preferences to a greater extent. This results in even greater customer loyalty.
Supermarket patronage is in a state of transition right now, with customers switching from at-home purchases to out-of-home purchases, regardless of the fact they are working from home more than ever before. Online grocery purchases, however, are expected to make up more than 10% of the total market by 2026; despite the transport shortages and supply-chain bottlenecks – residual effects of the COVID-19 pandemic.
The increasing price of some ingredients which stems from rate increases pushed by the Reserve Bank of Australia means some shoppers are unable to buy the ingredients they are familiar with in the quantities they desire affordably. This is compounded by the global shortage of a key diesel-based fertiliser, AdBlue, which is a result of Chinese export bans. Australian farmers have described the rising cost of AdBlue as ‘a kick in the guts’. Rising costs of farming are, of course, pushed to consumers which makes the state of our food economy somewhat troubling in context.
Global supply chains that transport goods from factories and farms to store shelves around the world are still recovering from the unprecedented chaos of 2021, amid a perfect storm of factors including surging consumer demand, extreme weather events and labor shortages. While goods in most cases arrive with enough time to be available on shelves during weekly grocery trips, these influencing factors determine a lack of consumer confidence and worry about the sustainability of the Australian food industry.
Lumix Procut supplies food processing machines direct from Spain to Australian retailers. We also provide regular maintenance schedules where we can. You may purchase after sales care, service and spare parts replacement and ensure your machines can keep up with food hygiene and occupational health and safety standards. Lumix Procut are available to sell you heavy duty meat processing equipment, via telephone, Monday to Friday, 8:00am to 4:30pm. Call us on 02 9792 7700 to place an order. Ask for delivery too!
