FDF is working with member companies in our sector to understand the impact of the sanctions imposed on Russia.
Availability of ingredients/raw materials
FDf has identified key ingredients and raw materials where trade flows have been most significantly impacted. The greatest concerns relate to the availability of sunflower oil and derived ingredients. There are also concerns relating to rapeseed oil, white fish, herb oils, packaging raw materials and wider impacts on global cereals markets. Impacts on fertiliser may present wider challenges for UK agricultural producers.
Product labelling requirements
80% of global sunflower oil exports originate from Ukraine or Russia and many manufacturers will need to switch to alternative vegetable oils and certain other ingredients (e.g. emulsifiers). This has implications for information included on product labels. Based on our initial work with Government, pragmatic enforcement has now been advised in order to help minimise any supply disruptions. This includes a specific derogation for the substitution of sunflower oil with refined rapeseed oil. The FDF are in ongoing discussions to broaden out this derogation to other ingredients. Companies are strongly advised to have conversations with their Local/Primary Authorities for these case by case and temporary enforcement flexibilities to be permitted.
Manufacturers are extremely concerned about further large price increases to already high energy and fuel costs. This presents a major challenge for many producers, especially high energy using sectors of our industry. There are also concerns about the possibility of restricted supplies. As part of the UK’s Critical National Infrastructure, food and drink production should be prioritised.
FDf members take very seriously their duty of care for employees and are working hard to ensure workers that are from or have links to Ukraine are fully supported. Most immediately, FDF understand there could be challenges in terms of seasonal workers in farming roles. Many UK manufacturers are keen to sponsor refugees from Ukraine that would like to work in the UK.
Visit FDF webpage: Ukraine crisis | The Food & Drink Federation (fdf.org.uk)