The humanitarian crisis unfolding in Ukraine is something none of us ever considered and is a disaster for those involved directly and indirectly. ADAS has over the years worked in the country; our thoughts are with all affected.
The impacts on businesses, either direct in Ukraine or because of the sanctions being applied on Russia will have big implications on all aspects of our lives. It is not if they will, it is how large and how long the impacts will last.
We already know of increased fuel prices, increased grain prices and raw material shortages caused by disruption to supply chains – all greater than those already present as the world was exiting the pandemic. We will not try to highlight all those here but instead, refer to those which have recently explained these aspects.
Among the informed articles are:
- Effects on cereals and oilseed prices
- Effects on global food
- Wider effects on British companies and consumers
- Record energy prices
We are already seeing food and energy security rising up the political agenda and whilst there are many aspects of environmental sustainability which also help achieve these, there are some which conflict and will require a reconsideration of priorities. Decision making will become increasingly complex and it is important to review the strategic direction for your business along with the likely timescale of impact.
To deal with these impacts, agricultural, horticultural and the wider food and drink industry should take a step back and look at the bigger picture. Consider each and every partnership and transactional relationship with your buyers and sellers. Focus on risk mitigation and ask the question “how does my business need to increase resilience to deal with these issues?” Doing some strategic planning now, and modelling the possible impacts, will both help to avoid shocks and enable the timely evaluation of sustainable alternatives.
ADAS’s core strengths in both public and private sector markets are in the provision of informed, independent, and impartial research and consultancy to provide:
- Robust evidence for policy development and position statements
- Impact assessments and feasibility studies
- Monitoring and evaluation
- Industry intelligence and insights
To mitigate the impact on all businesses
- Audit your energy use to find where savings can be made. ADAS, working with other companies in the RSK Group, can offer advice on alternative energy solutions, including solar and ground source heat.
- Consider critical material availability and plan to ensure early ordering of essential supplies such as packaging and time critical spares etc. Identify any alternative contractors or suppliers that fit within your existing carbon footprint as it’s unclear how long this disruption will last, nor the full ramifications on others within your supply chain.
In addition, below are some practical specific actions to help mitigate the effects on farm:
- Assess business resilience and make plans to mitigate against high risks. Whilst not specifically designed for the impacts of the Ukraine conflict, the Future Farming Resilience Fund workshops could help farm businesses better prepare for uncertainties /
- If you’re a grower, maximise the value of organic manures if you can. Tools such as PLANET and MANNER will be helpful. https://adas.co.uk/services/crop-nutrition/.
- Given the increased fertiliser prices and increased grain price, it’s also a good time to recalculate your optimum nitrogen rates
Additionally, we can help our clients to ask the right questions and make the right decisions. Contact us via www.adas.co.uk, enquiries@adas.co.uk or +44 (0)333 0142950.