France struggles with mustard shortage
It is likely that French consumers will see a lack of mustard in shops in the coming months due to a shortage of mustard seeds. The supply of the seeds has been damaged by severe drought in Canada, poor harvests in France as well as the war in Ukraine. So far, the price of mustard has increased by 10% in France, and some stores are struggling to restock products.
Canada was badly hit by drought last year, which led to collapsing crop yields, and this is now having an impact further down the line. In France, the production of domestic mustard seeds has also declined due to poor weather conditions. Climate change is one reason why such events are becoming more frequent, which is a worry for supply chains.
Managing director of French mustard manufacturer La Reine de Dijon, Luc Vondermaeson, has announced that production is currently running at around 20-25% less than normal. He also reported that the availability of seeds had decreased since February. He said that “the market is totally empty. Everything has been booked, and we have difficulty obtaining seeds.”
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Supply chain delays and high steel costs hinder renewable energy growth
The Covid-19 lockdowns in China and the rising costs associated with this are affecting supplies of solar panels and wind turbine parts. In combination with the rising domestic energy prices, these factors are having an impact on the renewable energy market in Australia and elsewhere, according to a leading insurer and industry groups.
The cost of steel needed for wind turbine blades was already on the rise before the pandemic, with increases up to 50% being common. The war in Ukraine and the lockdowns in China have now created a “perfect storm” according to Fraser McLachlan, chief executive of GCube, a global insurer of renewables. He said that “we’re seeing delays of six months at a minimum to get replacement parts and things like that coming out of China, sometimes more.”
Since the Russian invasion of Ukraine has triggered high levels of demand for clean energy, this is likely to have a further impact on supplies and the countries that supply the necessary materials. “Supply chains have really broken down globally”, since they cannot keep up with demand, according to John Grimes, head of the Smart Energy Council. Solar panels, inverters and batteries are among the products caught up, with price spikes increasing.
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Wholesalers warn of beer bottle shortages across Europe
A leading wholesaler in Scotland, Dunns Food and Drinks, has announced that the UK is around the corner from a bottled beer shortage as declining glassware stocks go hand in hand with soaring production costs. Price shocks have already been felt by suppliers, as costs jumped by 80% in the last year due to rising energy costs.
Beer experts in Germany have already announced that the country could be facing a shortage of glassware this summer because of rising costs and a lack of truck drivers, with small and medium-sized breweries set to be hit the hardest. It has been warned that the cost of German beer could rise by up to 30% because of the supply chain issues.
Julie Dunn, operations director at the Scottish wholesaler has said that “it won’t be long before the glassware shortages hits UK consumers. Our wine and spirits suppliers from around the globe are facing ongoing struggles that will have a knock-on effect.” Breweries in the UK are deciding to switch to predominantly can-only releases in the near future to avoid the issues with glassware.
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P.S. Unfortunately, there will be no Wrap-Up next week since I’m on holiday, but we will be publishing again as normal on the 10th June, so see you then!