At the time of writing, the US-UK trade deal is still progressing, with some agreements in place and other still unresolved issues. These deals will result in a variety of consequences that many industries will need to unpick and manage to ensure supply chain resilience.
One such consequence, relates to the removal of the tariff on US bio-ethanol imports, which will ultimately provide a cost advantage to US bioethanol in comparison to UK product. This is understandably troubling for the British bioethanol producers, which are already considering scaling back operations in response. The secondary implications, however, ripple out to the food industry.
Carbon dioxide (CO₂) is a by-product of bioethanol production; during the fermentation process, yeast converts sugars into ethanol and carbon dioxide. This CO₂ is captured and used in many industries, including the food industry where is it commonly used in beverage carbonation (soft drinks and beer), food packaging (to extend shelf-life), and meat processing.
There was real concern in 2022 when changes in fertiliser production saw a similar risk to the CO₂ supply chain, So, a consequence of this potential trade deal element will likely impact UK food manufacturers, increasing costs and waste.
This particular aspect of the trade deal may or may not be realised, but we do live in volatile times. Challenges, seen and unseen, will be incoming from all directions. Risk management activities are a requirement for maintaining robustness. It’s a sad fact that, wherever there is a shortage of essential materials or ingredients, shortcuts are taken, and vulnerabilities are exploited. This can lead to unexpected consequences to the producer and ultimately the consumer.
Preparedness and supply chain resilience strategies must become the way we do business, for every type of business, across all activities. Market Mapping and Technology Scouting (MM & TS) can offer identification of potential weaknesses throughout your supply chain and likely solutions across a range of technology readiness levels. A focused MM & TS programme can help you spot the threats and develop solutions. Your lighthouse and your compass, to help weather those storms.
