Tag: food and beverage procurement

IR35

Procurement Challenges and Solutions for the Food and Beverage Industry

In the recent times, we have witnessed players in the food and beverage industry investing heavily in the latest technological advancements to improve their processes. This trend is contradictory to the cost-cutting mode that was prevalent in the sector a few years back. Companies have started to realize that modernizing their activities is a one-time investment that could reap significant benefits in the long run. One of the functions which require businesses in the food and beverage industry to be on their toes is procurement. This is the stage that often proves to be tricky, but if efficiently managed can result in substantial cost rSE_Demo2eductions and considerable savings.

What are the procurement challenges in the food and beverage industry?

There are several factors that players in the food and beverage industry need to consider during procurement. One of the main issues worrying the companies in this sector is to find the right strategies to combat the hindrances that they are likely to face during decision-making. So what are the challenges that businesses in the food and beverage space have to consider while making procurement decisions?

  • Developing fast and high-performing supply chains to enable greater responsiveness to insights gained from big data analytics and other market reports.
  • Ensuring strict regulatory compliance, supply-chain transparency, and traceability.
  • Minimizing supply chain complexities, especially for perishable and seasonal products.
  • Avoiding under-stocking and over-stocking situations
  • Keeping track of the changing food trends and procuring the right products to suit the demand
  • Finding the right supplier offering the products at reasonable prices.
  • Cost control and increase the profit margins

How can F&B companies overcome procurement challenges?

To gain a competitive advantage in the market, it is imperative for companies in the food and beverage industry to control and rigorously manage their expanding and increasingly complex global supply chains. How can businesses achieve this?

Spend analysis

An effective spend analysis strategy can help players in the food and beverage industry to protect profit margins and formulate category sourcing, procurement, and supplier negotiation strategies in a much easier manner.Businesses can also gain easy identification of savings opportunities to accelerate decision making.

Strategic Sourcing

By defining sourcing strategies, F&B companies can efficiently determine requirements, discover, evaluate and compare suppliers worldwide. With the help of sourcing strategies, companies can take decisions that are fact and market-driven.

Contract Management

Players in the food and beverage industry can use contract management to rapidly build, negotiate and execute contracts that contain all the necessary terms related to safety regulation, policy compliance, and risk avoidance. It can also help them to enhance stewardship, security, and continuity of important contract documents.

Supplier Management

A supplier management strategy can help enterprises to successfully onboard new suppliers, manage compliance with regulations, inspection, and control requirements through multiple supply-chain tiers. Additionally, businesses can also continuously track, benchmark and improve supplier performance to yield fast flexible, responsive and globally competitive supply chain.


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procurement risks

Dairy Food Trends to Keep an Eye On: The 2018 Way

 Consumer interest in the actual and perceived health benefits of dairy consumption are  on the rise,prompting them to be up to date on the latest dairy food trends in the market. Although the market for dairy foods is expected to grow in the coming years, increasing inclination towards veganism’ and the rise of a health-conscious generation who seek to cut down on dairy consumption might prove to be significant challenges of growth in the industry. However, several smart players in the dairy foods industry were quick to identify new lucrative dairy food trends to keep the customers hooked to their products. Claims of fiber-rich and protein infused products fared well in satisfying the health-related concerns of customers. But the hunger for better and innovative products doesn’t seem to die. Consequently, players in the market for dairy foods are continuously formulating new methods to keep their customers satisfied. We have curated a few dairy food trends that are expected to be game-changers in the market in 2018:SE_Demo2

‘Clean’ is the new supreme

Customers today look for clean label products that do not contain any additives, artificial preservatives or chemicals. In fact, one of the major dairy food trends in recent times was the shift of clean label products from a ‘fad’ to a ‘necessity.’ Several big players in the market for dairy foods-have already made clean label products a way of life, and in 2018, this trend is expected to be picked up extensively by other players as well. Clean labels are one of the most prominent dairy food trends that are expected to increase consumer trust and mitigate brand risk for dairy food companies.

The disruptive green trend

The recent dairy food trends have seen plant-based milks, meat alternatives, and vegan offerings becoming mainstream. Many dairy companies are using the functional and technical benefits of plants in product development to drive more variety and excitement into their products. With the ‘Go Green’ anthem echoing louder than ever before in the food industry, players in the market for dairy foods will have to embrace this trend and incorporate the same into their products.

dairy food trendsSugar- The evil ingredient

The food industry faces the challenge of balancing public demand to reduce added sugars and create indulgent experiences, without compromising on presenting clean label products. With the increasing need of customers to cut down on carbs and added sugars, dairy foods companies are undertaking new methods by which they can satisfy this segment of customers without making the products decline in terms of quality or taste.

 Experimenting with flavors

The number of customers willing to experiment with new flavors are on the rise. Companies can use  innovative dairy food trends to their advantage to provide the customers with innovative offerings. Offering a different sensory experience is a way for enticing customers who are on the lookout for something new and innovative. Novelty is something that is a sure shot at attracting modern customers. Consequently, companies who seek to be ahead of the curve have to experiment with such dairy food trends.

dairy food trends


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IR3

Top Trends in the Dried Fruits and Edible Nuts Market

The tradition of consuming dried fruits as healthy snacks is not something new. It has been there since the fourth millennium BC in Mesopotamia. These fruits have the majority of their water content removed either naturally or artificially and are nutritious and have a longer shelf life. Today the consumption of dried fruits and edible nuts is widespread, with raisins, dates, and prunes making up most of the global sales. Some of the fruits are artificially drained using methods such as air drying, spray drying, and freeze drying to extend its shelf life and portability. The consumption of dried fruits and edible nuts in on the rise due to the high content of dietary fibers, antioxidants, nutrients, and healthy fats. Among edible nuts, almonds were the most consumed products in high-income economies in Europe and North America, followed by cashews. (Procurement Market Intelligence Report – SpendEdge)

Request Free SampleWhat’s trending in dried fruits and edible nuts market?

Drop in almond prices

Almond being the most consumed edible nut in the European and North American market has seen a gradual increase in its oversupply. This is especially prominent in California, USA, as farmers are generating high returns from the almond crops by replacing cotton and grapes crops. As a result of this mismatch between the demand and supply, almond prices have been gradually decreasing. Additionally, the demand for almonds from chief consuming regions such as Europe and Asia has also led to a short-term decrease in almond prices. Buyers in this market can grab hold of such opportunities by introducing new almond-based products.

Preference for sultana over raisins in the chocolate industry

The primary difference between sultana and raisins is the fact that raisins are produced from red grapes and sultana from white grapes. To contribute to the new product line and add variations in the flavor major suppliers such as Cadbury have replaced raisins with sultana. The other benefit of sultana is that it costs relatively lower than raisins. As a result, buyers are benefitting from a flexible supply of dried fruits to enhance their product line.

Growing investments in packaging and processing machines

The global trade of dried fruits and edible nuts has mostly seen sales of unbranded products. However, as consumers become brand conscious and international trade guidelines become strict regarding packaging, suppliers have to invest in packaging and processing machines. For instance, the cashew processing industry in Vietnam has increased from a capacity of over 250,000 tons/year to over 1.4 million tons/year in 2016. This sharp rise in demand can be attributed to the rise in exports to countries such as China, the US, and the Netherlands. Suppliers have been looking at packaging options including zip lock packaging, tray sealing, and laminated packaging.

Development of high-yield peanut varieties

Suppliers are in pursuit of high yield oleic Spanish peanuts, which are highly disease resistant and provides excellent yield with financial assistance from institutions such as the USDA.  For instance, Ole peanuts in multiple variety trials have resulted in an output of over 400 pounds per acre compared with Olin. Peanut crops, in general, have a lifespan of about five months and require a vast amount of nutrients to grow. Buyers have to look out for high yield varieties to ensure a constant supply of dried fruits and edible nuts.

Read more about the trends in the dried fruits and edible nuts market along with category management, procurement best practices, and key suppliers in SpendEdge’s upcoming report on the global dried fruits and edible nuts market.

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High demand for high-oleic sunflower oil from F&B industry in the global sunflower market

Sunflower OilLondon, Jan 22, 2018: Growing economies such as India and China are expected to drive the growth in the consumption of sunflower oil market over the next decade. The drive in the consumption of sunflower oil can also be attributed to changing dietary habits and increasing per capita consumption of processed food items in these countries.

SpendEdge’s latest procurement research report on the global sunflower oil market offers an in-depth assessment of the crucial factors influencing the supply market, strategic procurement and sourcing decisions, pricing models, and procurement best practices. The report, a part of the agro commodities and raw materials portfolio, also offers detailed insights into the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

“High-oleic sunflower oil improves shelf life for baked food products and makes them resistant to oxidation. Brands in the F&B industry are increasingly demanding sunflower oil as this property translates into high-cost savings, especially for high-heat applications.” – A. Kowshik, agro commodities and raw materials procurement research specialist at SpendEdge.

Sunflower oil’s sourcing and production processes are such that there are high chances of the oil getting adulterated or losing purity. As a result, seeds sourced should be inspected for quality and stored as per quality standard guidelines to prevent the risk of getting infected by fungus. Buyers in the sunflower oil market are facing sourcing challenges in order to obtain pure and unadulterated sunflower oil.

Need more insights on this report?

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This procurement report on the sunflower oil market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Key suppliers and assessment of their capabilities
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

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IR20

Top Trends in the Global Oil Market

Oil is an essential commodity which can be broadly categorized into edible oils and non-edible oils. Non-edible oils are used in energy production, especially for biodiesel production. Oils that are not used for energy production is either meant for human consumption or benefits us in other ways. For instance, castor oil is widely used to relieve muscle soreness and joint pain. The edible oil category in itself is quite significant with a reported global production capacity of 177 million metric tons in the year 2016. (SpendEdge Procurement Market Intelligence Report – Global Edible Oils Market) Economic growth in developing nations and changing dietary habits along with increasing per capita income are expected to drive the growth of the oil market. Here are some of the latest trends gaining traction in following oil markets:

Olive oil market

  • The importance of olive oil quality and certification has become important in recent times. Additionally, scrutiny of certification and classification, labeling and packaging have also become essential parameters for consideration.
  • Fluctuations in demand and supply in olive oil are destabilizing the global prices. The analysis of more historic pricing data shows that the price has increased by more than 60% over the last five years.
  • The rising awareness of health benefits of olive oil and easy availability is driving the consumption of olive oil in the global oil market. Change in dietary habits of end-consumers, especially towards reducing the use of oils and fats have driven the overall consumption.
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Mentha oil market

  • The increasing use of oral care products such as mouthwash and mouth sprays are urging the manufacturers to introduce new and different flavors. The use of menthol in various oral care products will result in higher demands for mentha oil.
  • Over the last few years, it has been evident that consumers are trying to avoid chemical based products in favor of natural and organic products. This trend is positively influencing the natural oil market such as mentha oil.
  • Tobacco consumers are shifting gradually towards flavored cigarettes, menthol being the most preferred one. In the US alone, the share of menthol cigarettes out of total cigarettes has increased from around 25% in 2001 to approximately 32% in 2013.
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Sunflower oil market

  • Sunflower oil suppliers are entering into contracts with farmers to provide them with agronomic services and crop inputs, and that will help in increasing farmer’s yields and maximize profitability. Such agreements ensure adequate and constant supply of sunflower oil without compromise on quality and grade.
  • In a bid to expand their product portfolio, suppliers are focusing on launching new sunflower oil offerings including non-GMO product and sunflower oil spray.
  • The increasing availability of non-GMO sunflower oil has helped food manufacturers and service operators to meet requirements of end-consumers for non-GMO-based products efficiently.
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Coconut oil market

  • Coconut oil buyers are focusing their efforts on shortening the copra supply chain by eliminating intermediaries and sourcing directly from farmers. Such strategic moves give them control over value chain, better traceability, and enhanced supply security.
  • Consumers increasingly prefer branded coconut oil instead of unbranded and unpackaged products. To paint a picture for such shift, the share of Indian branded edible oil segment, including coconut oil, jumped to 60%-70% in 2016 from 30%-40% in 2011.
  • Consumers preference for virgin coconut oil over other types of oil is on the rise as a result of growing awareness regarding the health benefits along with the growth of the middle-class population (end-consumers) that can afford costly products, including virgin coconut oil.
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Soybean oil market

  • Strict regulations regarding environmental protection in the soybean oil market is forcing the manufacturers to switch to eco-friendly hydraulic fluids for machinery and equipment. Buyers are feeling the heat of this as they may need to allocate specific costs for system flushing and maintenance of equipment.
  • In the recent time, China has emerged as a dominating force in this market threatening the leading position of the US. According to industry estimates, in 2016, Chinese increased its soybean imports to about 85 MMT from close to 10 MMT in 2010.
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Castor oil market

  • Castor oil exports have experienced variation over the last few years due to various reasons such as supply shortage, unfavorable weather conditions, and lower acreage of castor seed in significant supply markets such as India.
  • Castor oil is considered as one of the best vegetable oils to produce bio-diesel as it is soluble in alcohol and does not require a substantial amount of heat and energy needed to transform them into fuel. This makes them a suitable candidate to be used in biodiesel as an alternative
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Global-Meetings-and-Events-Market_CMST31

Procurement Issues Bothering Buyers in the Sweeteners Market

Sweeteners are widely used in food products to improve the taste and shelf life of food products and balance the bitterness, sourness, or saltiness of the food. Sugar is the most common type of sweetener used widely across the world. However, the advances in science have paved the way for new generation of artificial sweeteners such as aspartame, saccharin, sorbitol, sucralose, stevia, and xylitol. Although such artificial products received much heat in the past due to health issues, many research studies have provided strong evidence that it is safe for human consumption. The procurement market intelligence report from SpendEdge reports that the demand for sweeteners is on the rise due to increasing demand from emerging economies such as China and India. The surge in demand can be attributed to growing number of restaurant chains, changing dietary patterns, rising disposable incomes, and the growing availability of chocolates and confectionery products.Request Free Sample

Procurement challenges in sweeteners market

High sulfur content in sugar

The process of refining sugar involves a standard supplication process that makes use of sulfur at two stages. At times, traces of sulfur content remain in sugar even after the final processing. Numerous countries have banned products with high sulfur content as higher sulfur content can cause certain respiratory problems among other health problems in humans. As a result, buyers should engage with suppliers that use alternative methods of refining sugar, which does not involve the use of sulfur. Using carbon dioxide instead of sulfur is one of the emerging alternatives.

Use of GMO

In recent times, the use of GMO ingredients has come under scrutiny due to concerns over its health effects. As a result, governments across the world strictly monitor the use of GMO, making it essential for food manufacturers to ensure that the sugar or sweetener sourced is not produced using genetically modified sugarcane or sugar beet. In order to avoid the use of GMO ingredients in the product, buyers can ask suppliers to provide a certificate that states that products are not made using genetically modified ingredients.

Lack of supply chain transparency of suppliers

The big suppliers of sweeteners source their raw materials such as sugarcane or sugar beet from small family-owned farms. The raw material is then processed through refineries and goes through complex production system before getting converted into raw sugar. This system does not provide clarity in the supply chain of the sweeteners as sources of raw material, quality of crops used, and the conversion process is not so transparent. It is essential that buyers ask suppliers to submit periodic documents containing traceability details such as the source of raw material and farm location. The new blockchain technology can also assist buyers to assess the overall supply chain.

Fair-trade and sustainability certified sugar

There have been numerous instances and debates on the unfair trade practices which pays sugarcane farmers small sums of money for their products. Majority of the sugarcane farmers are from developing regions and Fairtrade certification aims to protect these farmers against the volatile market and hazardous working conditions. Also, end-consumers prefer sustainably manufactured sugar which implies that production practices used for sugar are environmentally safe and sustainable. Buyers should look out for suppliers that provide fairtrade and sustainability certified sweeteners. End-consumers are willing to consume products which support fairtrade practices and sustainability.

Read more about the trends in the sweeteners market along with sourcing strategies, procurement best practices, and pricing insights in SpendEdge’s upcoming report on the global sweeteners market.

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Outsourcing services

Increasing culinary applications in mediterranean dishes and multiple health benefits driving the olive oil market

Olive Oil

London, Jan 15, 2018: The constant increase in the demand for extra virgin olive oil to cook Mediterranean dishes is driving the growth in the global olive oil market. Extra virgin olive oil is being marketed as premium and provenance-based oil, which has initiated trial and adoption across major consumption markets such as India, Brazil, Russia, Japan, and China.

SpendEdge’s latest procurement research report on the global olive oil market offers an in-depth assessment of the crucial factors influencing the supply market, strategic procurement and sourcing decisions, pricing models, and procurement best practices. The report, a part of the agro commodities and raw materials portfolio, also offers detailed insights into the supply chain management, key market developments, and demand-supply shifts to help sourcing and procurement experts make smart procurement decisions.

Research studies have also proved that olive oil-based diet is more effective for weight-loss as it raises high-intensity lipoproteins (good cholesterol) compared with a standard low-fat diet. This is the prime reason why the global demand for olive oil is in the rise” – A Kowshik, agro commodities and raw materials procurement research specialist at SpendEdge.

A majority of the olive oil production is concentrated in countries around the Mediterranean Basin (Spain, Italy, and Greece). The extreme climatic conditions (high temperature and occurrence of floods) along with the instance of crop infection in 2014 have impacted the production. This has impacted the assurance of supply of the oil in desired quantities. This has also created an upward pressure on the price of the oil and is likely to increase management complexity, and overall procurement spend.

Need more insights on this report?

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This procurement report on the olive oil market offers insights on:

  • Supply markets, growth drivers, trends, and imminent restraints
  • Key suppliers and assessment of their capabilities
  • Procurement best practices
  • Negotiation strategies and cost-saving opportunities
  • Pricing models and category innovations
  • For a comprehensive, detailed list, view our full report

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IR32

Procurement Best Practices Study Helps a Leading Food and Beverage Industry Client Deliver Personalized Experience While Controlling Costs

Overview of the Food and Beverage Industry

Over the past few years, the food and beverage industry has been witnessing noticeable changes in the consumption pattern owing to the increasing disposable income across the globe. The food and beverage industry contributes in expanding the economic opportunities as the industry is universal and caters to human life and health. The emerging growth of developing countries coupled with an increase in the population growth and government regulations is impacting food and beverage fircompanies and their business strategies. Additionally, due to the increase in the growth of economies of countries like India, Brazil, and China, customers have the ability to pick from a variety of food and beverage offerings; thereby, creating new market opportunities for firms.

A few fundamental factors that are expected to influence the growth prospects of the food and beverage industry in the coming years include:

  • Differentiation in an oversaturated marketplace: It is crucial for food and beverage industry firms to differentiate themselves from others by offering unique offerings to stay ahead of the competition. This is because consumers have a lot of options to choose from when it comes to selecting a food or beverage owing to the advent of several new food and beverage companies.
  • Adhering to changing consumer demands: Food and beverage companies and their trading associates should look to create a new supply chain framework that would allow them to cater to the needs of consumers without sacrificing on price, efficiency, availability, product quality, and convenience. This is due to the rising consumer demand for products that are grown sustainably, minimally processed, ethically sourced, and produced with natural ingredients.

These factors are compelling food and beverage firms to leverage the use of procurement best practices solutions. Procurement best practices solutions provide information about the best practices followed by peer group companies within the food and beverage request free proposalindustry space and ensures the delivery of high-quality offerings and personalized experience while cutting down on the costs and driving profitability. These solutions also help companies devise best-in-class sourcing and procurement strategies across their business.

The Business Challenge and Journey

The client, a leading food and beverage industry player wanted to identify the peer companies and their key suppliers within the food and beverage industry to evaluate their sourcing and procurement best practices and capabilities and cut down on the maverick spends across the supply chain. Moreover, the client was facing challenges in ensuring agile discovery of innovative potential partners coupled with advanced risk management, governance, and control capabilities through supply and service provider networks.

To cater to the business requirements of the food and beverage industry client, SpendEdge personalized a comprehensive research methodology. The broad research approach comprised of primary and secondary research methodology coupled with qualitative and quantitative data collection procedures.

During the course of this procurement best practices engagement, the client was able to categorize the high-performing and low-risk suppliers and service providers which helped them control costs associated with regulatory compliance. The engagement also helped them achieve operational efficiency and strict spend compliance while releasing procurement talent to support both product and service innovation. Furthermore, the client obtained insights into the category, supplier, region, and branch-level spend intelligence to implement capital allocation strategies.

Fundamental questions answered in this procurement best practices study include

The Results

The food and beverage client identified the functional drivers and commercial decisions that impacted the profitability and implemented best-in-class sourcing and procurement strategies across the supply chain with the help of this engagement. This engagement further assisted the client in reducing maverick spends across business units.

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procurement risks

Supply Market Intelligence Helps a Leading Food and Beverage Industry Client Achieve an Annual Savings of $15 Million

Overview of the Food and Beverage Industry

The food and beverage industry plays a unique role in expanding economic opportunities because it is universal to human life and health. Driven by the increasing disposable income, the food and beverage industry has been witnessing noticeable changes in the consumption pattern. The emergence of developing nations coupled with their population growth and increasing government regulations is impacting food and beverage manufacturing companies and their business strategies. Moreover, the higher economic growth of countries such as India, Brazil, and China give people the ability to choose a wide variety of food and beverages; thereby, creating a new market for many products.

Let’s look at some of the fundamental factors that will influence the growth prospects of the food and beverage industry in the coming years.

  • Adhering to changing consumer demands: In today’s competitive marketplace, rising consumer demand for products that are grown sustainably, ethically sourced, minimally processed, and made with natural ingredients is creating uncertainty within the global food and beverage supply chain. As a result, food and beverage companies and their trading partners must create a new supply chain framework that allows them to cater to the needs of consumers without sacrificing on price, convenience, efficiency, product quality, and availability.
  • Differentiation in an oversaturated marketplace: Improved economies across the globe have led to the advent of several new food and beverage producers. Therefore, consumers have a lot of options to choose from when it comes to selecting a food or beverage of their choice. As a result, it is crucial for food and beverage industry players to differentiate themselves from others by offering unique product and service offerings and stay ahead of the competition.

These factors are forcing companies operating in the food and beverage space to leverage the use of supply market intelligence studies to stay ahead of the competition. The supply market intelligence studies help clients gain a deeper understanding of the latest developments and trends, key risks, and recommendations on devising procurement best practices across the food and beverage industry. These solutions also help firms reduce their procurement spends and offer superior product and service offerings to their clients.request free proposal

The Business Challenge and Journey

The client, a renowned player in the food and beverage space with multiple business units spread across the globe, was difficulty managing their sourcing and procurement processes, which resulted in higher expenses across the supply chain. Therefore, they wanted to gain a comprehensive understanding of the suppliers, competitors, their products, services, and spending pattern to cut down on their direct and indirect spends. They also wanted to gain actionable insights on ways to enter into a superior contract negotiation with their current suppliers. As a result, the client approached SpendEdge’s supply market intelligence experts to overcome their predicaments.

To support the food and beverage client overcome their predicaments, SpendEdge tailored a comprehensive research methodology. The research approach comprised of primary and secondary research coupled with qualitative and quantitative data collection procedures.

During the course of this engagement, the food and beverage industry client was able to identify the supplier’s pricing and cost structure and devise a price model analysis to evaluate competitors’ strategies. Additionally, a comprehensive SWOT analysis aided the client in establishing a list of suppliers in terms of their business profile, revenue, and financial structure. The engagement also helped the client prioritize action plans, implement best practices, and devise new sourcing strategies across business units to cut down direct and indirect costs while establishing a lean and centralized sourcing and procurement process.

Key questions answered in this supply market intelligence engagement include 

The Results       

The supply market intelligence engagement helped the food and beverage industry client identify the potential supply risks and enhance their procurement and sourcing operations and capability. This helped them achieve an annual savings of $15 million.

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Butter Shortage in France – Why are the French Bound to Compromise on their Croissants?

France is the place to be if you are a food lover. The country is primarily known for its love for croissants and pastries. However, you might not want to be in France right now if you share the same cravings. The country is facing massive butter shortage which is affecting the availability of croissants (constituted mainly of butter). The supermarket butter shelves are empty, and the issue has been widely mocked online.SE_Demo2

So What has Caused this Butter Shortage?

Back in early 2015, the EU abolished its system of milk quotas that triggered a flood of milk supplies. Consequently, it caused the collapse of milk prices that prompted the dairy farmers to cut down on their milk outputs. The shortage in French milk subsequently crippled the suppliers to fulfill their butter orders.

The Demand-Supply Side of the Problem

The global demand for butter more than doubled in a span of two years right after a research suggested that saturated fats were not as harmful as they were once thought to be. This surge in demand has led the butter prices to skyrocket. For instance, butter prices in France have almost doubled compared to previous year. Add to that the shortage in supply, then the butter crisis in France seems inevitable.

Is the Butter Crisis in France Resolving Anytime Soon?

There have been differing views on this shortage problems, with some experts saying the shortage will last until Christmas, while others disagree with the opinion. The demand for butter does not seem to be discouraged by the price hike, as consumers are more than willing to pay extra for something natural and less processed. Also, farmers, who lie at the bottom of the butter supply chain are facing biggest volatility risks, as just a year ago they were struggling with meager margins for milk production.

It’s already high time that governments and unions look into the issue of food shortage with a little more care. The procurement and supply chain management of food products should be handled with utmost care as it hits not only the consumers but also the farmers who are highly dependent on the proper supply of food products.

For more information on how a better procurement, supply chain management, strict regulations, and proper forecasting can help avoid food crisis and butter shortage:

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