The 2 Issues that will determine success or failure for food companies in 2022

Which businesses are primed to get ahead in 2022? & Why?

We have asked some of our clients in the food and agri sector what will be the crucial aspects to concentrate on for their businesses in the coming months of 2022.

The range of responses from logistics, supply, energy, transport, tariffs, raw materials, workers etc. boils down to two key issues:

  1. inflationary costs; and
  2. staff retention.

Whilst the label ‘inflationary costs’ will cover a multitude of very different liabilities; the crucial aspect is how each company has responded to these.  The flexibility and proactivity within the business is likely to be a key indicator of how well the company is managed and so able to succeed in the oncoming year. 

This year’s financial accounts will be a key indicator of those businesses that have responded promptly to these pressures and managed these risks best.  

Additionally, there was speculation there may be some market correction, whereby initially in the pandemic it was SMEs that were most threatened by lack of resources, now it may be the larger companies that will suffer more from being more exposed to these inflationary costs and less agile in hedging for the future.

Finally, a key resource for all organisations is the people that work in and represent them. This is another resource which has become squeezed recently.  Good people management has always been essential but in the current market where there is less availability of employees in the job market, wage inflation and increased costs of recruitment, it is poised to become determinative of future success or failure.

For assistance with these issues or any other related matters please contact Craig Hodgson via email at craig.hodgson@mills-reeve.com or Michael Aubrey via email at  michael.aubrey@mills-reeve.com.

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