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Food supply chain in lockdown 'strain'

By YOURI KEMP

and NEIL HARTNELL

Tribune Business Reporters

A Bahamian bread supplier yesterday revealed that the government's total weekend lockdown had disrupted production to the extent that fulfilling orders by major retailers was impacted.

Kimani Smith, Purity Bakery's general manager, told Tribune Business: "When the prime minister shut down the country abruptly, and he did what he had to do, that basically disrupted our production schedule.

"For example, we produce bread on Sunday for Monday distribution, so we weren't able to get in the bakery on Sunday. We are making bread as of today [Monday] and we are going to be putting that out.

"We are trying to adjust our schedules accordingly, but what is happening in the stores as you can imagine is everyone is a little panicked and afraid, so everyone is having a massive run on the inventory of bread. For example, if you are accustomed to purchasing two loaves you are now purchasing eight."

An e-mail sent yesterday by Purity Bakery to one of its customers, which has been seen by Tribune Business, warned that the late manufacturing start could postpone store deliveries until this morning.

It said: "As you are aware we were all shut down this weekend. We normally produce bread on Sunday for Monday distribution, we were unable to do this and we are now in the process of producing. We normally start producing from 12am but had to start at 6am this morning.

"Subsequently, bread may not be available to service your stores until Tuesday morning. Depending on the time the production run finishes we will do our best to supply before your stores close this evening. But certainly will service Tuesday morning."

Mr Smith, meanwhile, said bread demand was "impossible" to keep up with. He added: "Because it is not like baking bread at home, we have a whole process and a whole manufacturing plant. So it is usually a process before I get a loaf of bread to the store.

"I have at least four to six hours of production time. I'm talking about mixing the bread and letting that bread that proof, and then going through the oven; letting the bread cool; bagging the bread and then now having to distribute the bread."

Mr Smith continued: "We're putting bread out right now, and I am trying to work through the disruption as best as possible. But I would imagine that every manufacturer would be in a similar boat and they are trying to adjust their production schedules based on the constraints they have."

"There is plenty of product available. We just had to adjust our production schedule based on the protocols that have been established. Mr Smith reassured Bahamian consumers Purity Bakery was delivering bread to the market as of yesterday and will continue to do so.

But he added: "As of next week we won't be able to get into the bakery until Tuesday based on the restrictions from the Prime Minister. We have an exemption to operate right now as an essential service, but even the food stores won't be open based on this new lock down, so we are just falling in line with the new protocols that have been established.

"On Tuesday of next week we will have bread available by probably midday as opposed to Tuesday morning, because after we put the bread out at the end of Wednesday we won't be able to get back in and firing up those ovens until Tuesday morning as opposed to Monday night. So remember we need a day to bake and a day to distribute."

The Prime Minister announced in Parliament yesterday that The Bahamas will go through a five-day lockdown over the Easter weekend starting on Wednesday night at 9pm and ending on Tuesday morning at 5am. The lockdowns will be repeated for every weekend in April, lasting from Friday night at 9pm to Monday morning at 5am.

The end of the weekend shutdown, followed swiftly by the announcement of a new one, produced long lines at food stores, gas stations and water depots as Bahamians and residents raced to stock up ahead of Easter.

Philip Beneby, president of the Retail Grocers Association, told Tribune Business yesterday that the Government's lockdowns will "put a strain on the supply chain without a doubt" as retailers will have to ensure all orders placed with wholesalers/importers this week are received before Wednesday evening.

He added that the industry simply had to "find some way of working through it" and adjust strategies, especially given that yesterday's curfew - which did not expire until 5am - meant wholesaler staff were unable to come in early and start picking orders for delivery to retailers as they normally would.

"We are pulling from the in-house inventory right now seeing that Wednesday is going to be the last day for deliveries," Mr Beneby said. "We have to see whatever we can get on from the wholesalers between now and Wednesday because for five days that's it. If orders are placed and you don't get them by Wednesday it means you will not get them until the following week Tuesday.

"It is going to put a strain on the supply chain without a doubt. Even speaking with one of the other major warehouses after checking on one of our deliveries, they're saying workers can't come to work and start pulling the order before 5am. That slowed things up.

"That takes a while before all the trucks are loaded and they hit the street. It does have a negative effect sometimes to the extent the supply chain needs to keep moving. For most large wholesale distributors they have early workers that come in and pull the orders so they can get out to the food stores early. They weren't able to do that early this [yesterday] morning because of the 5am curfew."

Comments

BahamaPundit 4 years, 7 months ago

The PM made a mistake in locking the country down with such short notice after sending a notice around that news of the lockdown was Fake News. This caused panic shopping. Now, the Bahamas could experience food shortages, due to panic shopping -- just ask the UK... Baking bread should be considered an essential service.

joeblow 4 years, 7 months ago

… that's a minor problem compared to the fact that major producers of rice, wheat flour and other commodities are locking down exports of these products to ensure they have enough of them at home. There will soon be significant global scarcity! For a country that produces nothing but onions and some guineps, things could get tough in a real way very soon if the global spread of this virus continues!

The question then becomes, has the government been stockpiling any essentials (rice, beans, flour, powdered milk etc) if there is a global shortage. The obvious answer is no!

Well_mudda_take_sic 4 years, 7 months ago

But some of the more corrupt political elite in our country have been able to squirrel away great fortunes in secretive foreign bank accounts and foreign investment portfolio accounts.

BahamaPundit 4 years, 7 months ago

This is well said. What are The Bahamas' food stocks? The country should have saved enough food to last an entire year. As global currencies become worthless and billions unemployed, countries may look to hoarding food and national produce to prevent their citizens starving. This could lead to the collapse of food exports and supply chains. We need to remember cause and effect. The world has not yet pulled through the "cause," which is the pandemic. The "effect" of the pandemic, a global financial crisis, could last many years. We need to prepare NOW for the effect that comes after the cause.

Well_mudda_take_sic 4 years, 7 months ago

Minnis is doing a good job killing our own local food supply chain with all of the fits and starts to his total lock down orders. Obviously Minnis has very little business sense when it comes to micro economics and how local supply chains are intended to, and must, operate to prevent failure.

stillwaters 4 years, 7 months ago

Food stores and bakeries will restock during lockdown.....let's be hopeful and positive.

Well_mudda_take_sic 4 years, 7 months ago

Right, so that we can have chaos all over again....and again...and again.

stillwaters 4 years, 7 months ago

Please, rest politics aside .......this shut is serious

Well_mudda_take_sic 4 years, 7 months ago

".... but I'm going to supply the country with food as long as the Ministry of Finance has foreign exchange to do it."

That's a very telling serious remark by Mr. Roberts in another Tribune article, especially given that he also happens to be a major shareholder in Commonwealth Bank and is therefore acutely aware of the state of our country's finances. And even more worrisome is the fact that John Rolle, the governor of our central bank, has been very quiet about the rapidly diminishing level of our country's foreign currency reserves.

We must not forget, as Mr. Roberts rightfully points out, that food imported by him from his wholesale food distribution centre/warehouse located in South Florida must be paid for in US dollars.

All of this begs the important question: Is Turnquest proposing to Minnis that the Bahamas significantly increase its foreign currency denominated debt no matter what the interest rate cost may be in order to cope with the insufficiency of our country's foreign currency reserves? That would be tantamount to mortgaging our country to foreign currency lenders with all sorts of disasterous consequences for the Bahamian people down the road. Truly a frightening thought given that both John Rolle and KP Turnquest have so quiet lately.

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