Blog: Hannah AbdullaThe food industry's supposed winter-efficiency drive

Hannah Abdulla | 21 September 2015

Is there a link between the weather cooling and the food industry belt-tightening? It appears autumn is the prime season for food manufacturers to get their firms operating at maximum efficiencies, with news of job-cuts is on the up.

Today (21 September) New Zealand dairy giant, Fonterra, announced it was adding a further 227 job cuts to the 523 cuts announced in July, in a bid to lower costs to remain competitive in an environment of low global dairy prices.

Hours later, Finnish poultry processor, Atria said it would cut 35 jobs in Sweden as part of a cost-cutting drive, a move expected to to generate annual cost savings of approximately EUR1.8m (US$2m), which will materialise in 2016.

Coincidence perhaps. But news of job-cuts seems to grow in the run-up to Christmas. Last September, Grupo Bimbo announced it was axing 84 jobs, followed by French meat processor, Terrena with 165 job cuts and Fazer with 49 job cuts un October. In November Arla cut 100 jobs in the UK with Perfetti Van Melle and Coca Cola Amatil following suit in December with 49 and 260 jobs respectively.

There's no hard evidence to suggest there is a link between the time of year and an increased level of layoffs. But if last year's pattern is anything to go by, the food industry could be set to see more job-cuts between now and December.

You read it here first folks.

BLOG

Nature's Path quits US organic trade body in "protest"

The Organic Trade Association, which represents the organic industry in the US, has seen a high-profile member quit the organisation, taking a swipe at the body's stance on policy issues....

ANALYSIS

Why food and tech need to better connect

The closure of US meal-kit business Chef'd is symptomatic of the challenges in that fledgling sector but, Victor Martino argues, it is also emblematic of an underlying issue in the wider industry - th...

BLOG

Early skirmishes in the Ketchup War

In the 1970s a squabble between the UK and Iceland over fishing rights in the North Atlantic earned the somewhat hyperbolic name of the Cod War....

BLOG

Brexit could be worse for dairy than Russia ban, EU and UK producers warn

Russia's embargo on a swathe of foodstuffs from the EU in 2014 - a ban that lasts to this day - hammered the bloc's dairy industry. But producers on both sides of the English Channel have warned the i...

BLOG

Plenty of hot air as UK politicians grill Asda, Sainsbury's over merger

UK Parliamentary select committees at their best are meant to bring light rather than generate heat but this wasn't a select committee at its best....



Forgot your password?