Kent’s food and drink firms facing ‘crisis’

‘Is it just about price or do we also care about businesses trying to do the right thing?’ Floortje Hoette, Produced in Kent’s chief executive

Covid, Brexit and the soaring cost-of-living have pushed the county’s local food and drink sector into a “crisis”, a leading organisation says. But by slightly adjusting our weekly shopping habits, we could all play a vital role in reversing its fortunes. That’s the key message from Produced in Kent, a membership association which champions local suppliers. Explains Floortje Hoette, its chief executive: “The sector is facing a very challenging period and it needs all the support it can get from us. “In 2020 it was Covid, supply chain disruption and staff shortages which led many to build up debts.

“Then in 2021 we had Brexit which led to a huge increase in paperwork both for importers and exporters and the cost of additional administration. There were transport issues, hold-ups at the border and additional staff pressures, most notably in the agricultural sector with seasonal labour.

“Last year we saw the continuation of energy price rises in gas, electricity and petrol. The war in Ukraine hiked them even further.

“All those problems led to an increase in production costs. Some are now calling that rise a ‘cost of producing’ crisis. “And, of course, over the past year, many firms are starting to have pay off their Covid loans.

“It shows how the pressures on the production of food and drink. There’s that on one side and then very weak demand due to the costof-living crisis.”

Covid forced many firms to pivot and seek ways around the closure of the hospitality industry which many relied upon. They found success and a renewed gratitude from local people desperate for supplies. But with the return to normality, so have our shopping habits.

Adds Ms Hoette: “I don’t think anyone could have imagined this set of factors. But I have deep respect for how the food and drink sector has continued to go – they had to step up.”

The cost-of-living crisis has put a squeeze on family budgets like never before. The knock-on impact of goods and services has driven food costs up 16.8% during 2022, according to the ONS. It’s the sharpest rise since 1977.

And while, anecdotally at least, there’s still a growing demand for local produce, the issue of price has never been more significant. Buying local is all well and good, but the perception is it comes with a higher price tag. Adds the Produced in Kent chief: “There are, of course, people who struggle to put a meal on the table and that’s a huge problem. There’s a wider group who have to think carefully on what to spend. But in that wider group there is still space for them to buy local and support the sector where they can.

“If we want to support sustainable business and care about the environment then we need to support local growers and producers where we can. We need to build in buying local where we can. “That offers support to the local sector, which is providing jobs, putting money straight back into the local economy plus it looks after the countryside.

“Is it just about price or do we also care about businesses trying to do the right thing?”

The cost-ofliving crisis has put a squeeze on family budgets like never before