Nappies, pet food, peanut butter: Supply issues could last all year

Wednesday, 19 May 2021

Food and grocery supply shortages continue to plague supermarkets.

In Petone Pak ‘n Save, shoppers are warned that there is a shortage on Huggies nappies and certain brands of pet food.

In the Countdown down the road, an Eta peanut butter fan is having to settle for a different brand.

A year-and-a-half after the start of the global pandemic, international supply chains are still struggling to return to normal levels.

A sign in Pak 'n Save Petone warns customers that there is a shortage on some product lines.

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Food and Grocery Council chief executive Katherine Rich said the global supply network was under unprecedented pressure and New Zealand faced a double dose of challenges due to proximity and port issues.

“I don’t want it to sound flippant, but I’ve been saying be nice to everyone who works in supply chain and logistics right now, because they are having a hell of a time,” Rich said.

“Nothing is simple. Lead times for imported products have been stretched out by many weeks. The cost of getting product in and out of New Zealand is four times what it was previously, and that’s if you can get containers and bookings.”

Food and Grocery Council chief executive Katherine Rich says supply issues are likely to persist until the end of the year.

While there have been high-profile shortages of some products, such as pet food, paper and some ingredients, “pretty much everything” has been affected, Rich said.

“Logistics experts tell me there doesn’t look like much respite for the rest of the year.”

Foodstuffs spokeswoman Antoinette Laird said New Zealand was in a fortunate position as a food producer.

“[But] from time to time there have been some intermittent delays on some imported goods, often a matter of a boat coming in later than expected, or a lack of containers in the port of origin,” she said.

“We expect this lumpiness to continue for some months, so our supply chain teams have adjusted their buying to compensate, by placing bigger orders of imported goods.”

Foodstuffs, which owns Pak ‘n Save and New World, had recently moved to a new warehouse, that allowed it to store more stock.

Staff also worked hard to ensure where there were delays in specific products there were alternatives, Laird said.

Foodstuffs’ main suppliers of pet food had experienced supply chain issues because of the knock-on effects of the pandemic, but, a large number of containers had arrived in New Zealand, Laird said.

Shortages in products like nappies are being discussed on social media, as people question why they can not get their favourite brands.

A Countdown spokeswoman said there were still global difficulties with sea freight, including the availability of shipping containers around the world and congestion at overseas ports and manufacturing, “which is leading to some delays here in New Zealand. Closer to home there’s also congestion at the Auckland and Tauranga ports”.

The company was working with suppliers to prioritise deliveries and minimise shortages, she said.

“We know it’s frustrating when customers can’t get their favourite product and we’re working hard to make sure there are still plenty of options on shelf for customers in every category.”