The fresh produce sector should be more equipped than most food and drink industries to battle the waves of this year’s credit crunch, according to Barclays Bank’s retail and wholesale relationship director Kevin O’Sullivan.
He spoke to visitors to the Food & Drink Expo on Monday about the current financial situation in the UK, and how it will affect the food and drink industry.
He told FPJ: “The fresh produce industry is very safe. With its healthy connotations, it has many avenues to go down and will have a certain amount of protection from the current economic situation.”
However, O’Sullivan warned that all food and drink suppliers and retailers should concentrate on developing good long-term relationships with each other. He also that the current general air of uncertainty is having an impact on consumer confidence, but said that a conservative approach from businesses will keep casualties to a minimum.
O’Sullivan claimed the UK was going through a “fluidity crunch”, rather than a credit crunch, and said he believes the situation will last throughout 2008 and even into 2009. “Banks can lend money, but liquidity is not what it was,” he told the audience at the Barclays Commercial Bank briefing theatre, within the show. “There has been a dip in consumer confidence, and premium lines and fine food may suffer. It is wise not to put all your eggs in one basket.”
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