What’s new: The National Farmers Union warns that the UK is facing a potential food supply crisis. Tomato and other crop yields are expected to be low this year, following issues faced with the supply of eggs.

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Why is happening: Rising costs (including fertiliser prices, feed, diesel and energy) as well as Brexit red tape, and worker shortages have impacted farmers. 

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Why does it matter: Customers are increasingly price sensitive.

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For category managers and buyers: One focus is on reducing the range of products on offer, with the need to sell multiple types of staples no longer seen as a priority for customers.

By reducing the variety of flavours and packaging size options for example, retailers could cut down the number of suppliers, and benefit from improved terms due to higher volumes with the remaining suppliers.

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What’s next: The Bank of England forecasts that inflation slowly start to ease – having already peaked at around 11% (lower than the 14% predicted) and will ease to 5% by late 2023 and 1.5% by 2024.

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