Ukraine conflict presents supply challenges for plant-based sector

A new survey carried out by food awareness organisation, ProVeg International, has revealed the impact of the ongoing war in Ukraine on the plant-based sector.

Among the outcomes experienced by companies was closer partnerships with other brands in order to overcome the challenges raised by the war.

Closer internal collaboration between finance, production, and logistics departments was also reported as a result of the conflict.

The biggest challenge for companies is the price of raw ingredients, especially edible oils, and the availability and supply of oils.

In particular, sunflower oil was reported as becoming very scarce and alternatives are having to be sourced quickly. Ukraine is the world’s biggest exporter of sunflower oil.

International head of food industry and retail at ProVeg, Stephanie Jaczniakowska-McGirrsaid said: "It’s clear for all of us to see that the war is having a devastating effect on the lives of many people in Ukraine.

"It is good to see that companies are joining forces to overcome these challenges,” she added.

“These survey results are important to us in order to better inform proposals directed at policymakers, thus  ensuring that the plant-based industry receives the support it needs."

A total of 31 European companies in ProVeg’s network from 14 different countries responded to the survey between April 1 and 20, 2022. The key findings were:

Survey participants were also asked whether they thought their companies would need government help within the next 3-36 months in order to help them tackle the challenges created by the Russian invasion of Ukraine.

A total of 25% of companies said that they would require government support, while 29% said they might require support.

ProVeg is making three recommendations in light of the ongoing war in Ukraine:

ProVeg International said it is closely monitoring the effects of the war on the plant-based sector, which it views as forming the backbone of the European food system of the future.

The NGO added that it wants to ensure that the war does not lead to the watering down of the EU’s pioneering Farm to Fork strategy, which it says offers a viable pathway to creating a sustainable food system and protecting biodiversity.

According to ProVeg International, the European Commission has come under pressure to postpone implementation of the strategy and make more land available for farming in order to boost food production.

“In light of the impact of the war on the plant-based sector, we believe it is the right time to implement the EU’s Farm to Fork strategy to accelerate the transition towards a more plant-based diet,” Jaczniakowska-McGirr said.

“Enhancing and supporting the plant-based sector also holds the key to improved long-term food security, since it means that the grain that currently goes into animal feed will go directly towards human consumption instead,” she added.

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