Disruption of the supply chain and food security – Christo v / d Rheede from Agri SA and Gwarega Mangozhe from CGCSA comment on The Money Show.
As the looting of retail stores and the destruction of property continue, the South African Consumer Goods Council has expressed its concern about the potential impact of disruptions on food security and the supply chain.
“Factories will not be able to produce, leading to food shortages that will affect the most vulnerable and the poorest.”
As retailers lose millions, the potential impact on business viability and job security is also a major cause for concern, the Council said.
Bruce Whitfield focuses on supply chain disruptions and food security in interviews with CGCSA CEO Gwarega Mangozhe and Agri SA CEO Christo van der Rheede.
We have serious problems in KZN; our logistics network there is completely stagnant. This is the heart of the problem.
Hristo van der Reide, CEO – Agri SA
The other problem is obviously the areas where people have access to food. Shops and large malls were looted and destroyed. I do not know how we will solve this problem.
Hristo van der Reide, CEO – Agri SA
It is crucial for us to activate the logistics network in KZN so that we can move food to the countryside as well as outside the countryside.
Hristo van der Reide, CEO – Agri SA
On Wednesday, agricultural economist Wandile Sihlobo warned people living in provinces less affected by the panic buying panic.
In the near future, South Africans should not panic about the food system, which he wrote in an article published in theconversation.com.
Panicking will potentially lead to problems in the food supply chain in South Africa that would not otherwise be there. The food supply chains in the country are functional and we should not panic when buying things. https://t.co/OVDtChwFaQ
– Wandile Sihlobo (@WandileSihlobo) July 14, 2021
Although there is no cause for panic at this stage, Van der Reid says Shilobo’s statement must be qualified.
It is important that looting and chaos do not spread to other provinces. Than we are there will be a serious problem.
Hristo van der Reide, CEO – Agri SA
I believe that the port of Durban is also closed … and then the big problem is obviously N3 … which is blocked in both directions.
Hristo van der Reide, CEO – Agri SA
At this point, there is no real need to panic when buying, but I am worried about the conditions in KZN, where people do not have access to food.
Hristo van der Reide, CEO – Agri SA
While agreeing with van der Reid, CGCSA CEO Gwarega Mangozhe outlined the extent of the devastation in the retail sector and how this would affect access to food.
We had over 800 retail stores that were looted, completely damaged and cleaned and over 200 shopping malls …
Gwarega Mangozhe, CEO – Consumer Goods Council in South Africa
This has huge implications for consumers when it comes to access to food, but more worrying is the critical need to protect what I would call strategic commercial assets – your production centers.
Gwarega Mangozhe, CEO – Consumer Goods Council in South Africa
Some distribution sites have also been compromised, and it is absolutely important that these points be protected, Mangozhe said.
He notes that CGCSA is working with law enforcement through Business Unity SA (Busa) to try to critically protect the N3 route.
Supply chains must start moving, otherwise we will have problems in the next 24 to 36 hours.
Gwarega Mangozhe, CEO – Consumer Goods Council in South Africa
It is then vital that shops reopen on the basis of a risk assessment, working closely with law enforcement and in particular with visible police authorities …
Gwarega Mangozhe, CEO – Consumer Goods Council in South Africa
Listen to the discussion on supply chains and food security below (Agri SA and CGCSA from 4:08):