Changing face of UK supply chain

Trends in UK fruit consumption and supply will require companies exporting fresh produce to the UK to question the current routes to market. That’s the message given to delegates at Fruit Logistica in Berlin on 4 February by the supply chain director for the UK’s Peel Ports.

Rising imports of refrigerated containers and more direct distribution to retailers are some of the changes taking place in the UK market, and will mean exporters need to consider how they reach the main customers and how to ‘de-risk’ the impact on the quality of their produce.

Gary Parkinson, Group Asset and Supply Chain Director, said: “The trends that we’re seeing may mean exporters having to examine and redesign their supply chain in ways that they haven’t previously. This is especially true when looking at inland distribution, which should also have a major influence on the point of entry to a country. Unless companies understand what’s happening to their goods once they leave the quayside, there is a chance they will be caught out by the changes that are taking place now.”

74% of fresh produce reaching the UK last year was transported by container, compared with 52% 10 years ago. Also in 2014, trade via refrigerated containers hit 100million tonnes, with various shipping lines adding to their refrigerated containers fleets.

This increase in trade reflects both growing consumption in the UK of fresh fruit and vegetables, up by 17% in the last 15 years, and an increase of imports by 33% during the same period while domestic production fell.

At the same time, there are changes in how these goods are reaching consumers. The traditional model of entry via south-east UK ports and multiple handling before reaching regional distribution centres, is set to be replaced by a more direct route to market that sees imports going straight from the port to the processor.

This switch to more direct routing will be enabled – in part – with the opening of Liverpool2, a new deep-water container terminal, towards the end of 2015.

Liverpool2 will enable fresh produce to be imported directly into the North of England
from Southern hemisphere origins for the first time in over a generation as its hinterland includes the greatest density of employees in food and drink processing in the UK as well as a large density of supermarket distribution centres. There are 27 cold stores within 50km (30 miles) of Liverpool and 180 within 160km (100 miles).

The new Liverpool2 terminal will offer 600 reefer points with an additional 300 available at the existing container port.

For more information:
Stewart Argo
Weber Shandwick
Tel: +44 (0) 7825 388137
Email: sargo@webershandwick.com

Jenna Ciancia
Weber Shandwick
Tel: +44 (0) 131 556 6649
Email: jciancia@webershandwick.com