Update - 30 March 2020: A message from the Director
Firstly, I would like to thank you for your continued support of Agri Food Ingredients.
If you require any assistance during this period, we will endeavor to do all we can.
We as a food community need to band together to assist those who are negatively affected.
We all hope that you, your family and your work family remain safe and out of harm.
Please contact your account manager or myself if there is anything we can do.
Covid-19 has impacted us all in some way, but obviously some more than others.
Our business has seen slight impacts locally but its effectively business as usual.
Our warehouses are beginning to see delays in picking and packing.
This is due to the workforce being split to ensure continuity of service in the event of an infection.
Overseas impacts are mixed some being severe with others not affected at all.
China is beginning to return to some normality but with a large back log of orders.
Pricing has increased which isn’t a surprise so we will continue to monitor this.
India is completely shut down and other developing nations may take similar steps.
European ports are continuing to operate albeit at smaller staffing levels.
The USA is the unknown at this stage as it appears, they are likely to be the most affected by Covid-19.
Please continue to look to our website for any updates as the situation is very dynamic.
It is updated on an almost daily basis to keep all our partners across current events.
We will continue to monitor incoming stock to keep up with the unprecedented demand in some areas.
If you can send forward orders or notify us of any changes to your average uptake this would be greatly appreciated. There may be some rationing on some of our lines, but we will update if this is to occur.
The major negative impact on our business thus far has been the significant depreciation of the AUD versus all major currencies. This has placed immense stress on our cash flow and has greatly impacted the cost of imported products. We will have no choice but to adjust pricing in line with the full depreciation of currency over this period. Most current pricing is based on the below, which demonstrates the current volatility.
Pricing updates received for 1st of May and 1st of June pricing will be based on an AUD of 0.61.
January 2020 AUD v USD 0.70
March 19 2020 AUD v USD 0.55 21.43% reduction on January levels
March 27 2020 AUD v USD 0.60 14.29% reduction on January levels
January 1 2020 AUD v EUR 0.62
March 19 2020 AUD v EUR 0.51 17.74% reduction on January levels
March 27 2020 AUD v EUR 0.55 11.29% reduction on January levels
Raw material increases are beginning to be felt and this is further impacting our decision making.
We are monitoring pricing as we are hopeful that improvements can be made to the AUD and we can provide some relief. We all hope this current volatility stabalised and rates continue their recent increases.
I am not alone in the hope that the current measures being put in place in Australia and across the globe begin to curtail this pandemic. Everyone at Agri is maintaining full compliance to all current directions from government. It seems best case modelling has with successful distancing a duration of between 13-18 weeks. I have no doubt that this will severely impact some of our partners, and some will sadly cease to operate. This is an absolute tragedy and I sincerely hope that by and large this is not the case.
I am truly thankful for your patronage and myself and all members of our business are here to assist.
Please remain safe and take care of yourself and your family.
Update - 20 March 2020
During this time of unprecedented uncertainty, all of us here at Agri Food Ingredients are concerned about the safety and wellbeing of our families, colleagues, customers, partners and the many friends who make up Agri Food Ingredients family.
Our hearts are with those who have been affected personally by the outbreak of COVID-19 as well as the many communities around the world that are facing extreme measure in the attempt to slow its spread.
Agri Food Ingredients recognises the need to act responsibly given the pandemic affecting the world. We have implemented the following measure with effect immediately.
For most of the team, work can be conducted through remote connections, which enables the team to work off-site.
Face to face meetings have all been cancelled, any meeting needing to be had over this time will be done either by phone or video link.
All work-related travel has been cancelled both domestic and international.
Hygiene: We ask the following steps are taken by visitors and staff.
All people entering our or any of our Partners premises must sanitise their hands with provided sanitiser.
If you are sick or have returned from overseas in the last 14 days entry is not permitted on site.
All visitors, staff are to abide by the 1-meter distance from anyone onsite whenever possible.
Avoid touching your eyes, nose or mouth.
Cover mouth and nose with a tissue or elbow when sneezing or coughing.
Deliveries: Deliveries will continue over this time with extra precautions.
Signing of POD’s will be made by the driver acknowledging receivers name and any corresponding information needed.
Drivers will not be entering premises, if you have a hand unload delivery please ensure delivery can be placed outside your premises.
Pick ups: Pick ups will continue over this period with extra precautions.
Signing of paperwork will not be permitted, drivers will give their name and any corresponding information needed.
Drivers will not be entering the premises
Maintain 1-meter distance
Anyone entering a 3PL warehouse is to follow all signs and procedures put in place by the corresponding warehouse.
Supply of Goods:
Agri Food Ingredients hold stock locally in its warehouses based on specific supply agreement and average offtakes. In this dynamic environment we aim to give priority to our existing customers and those with specific supply agreements.
We are in regular contact with our suppliers, as well as freight forwarders to have the most up to date information of any impact foreseen or experiencing. However, in the current COVID-19 environment it is becoming increasingly difficult to predict how typical inventory levels will be impacted.
Purchase orders are welcome in advance in aim to secure stock, we will do all we can to supply orders and advise of any issues upon receipt of orders.
The current COVID-19 environment is currently impacting exchange rates, raw material availability and freight rates which are having a significant impact to imported product costs. Agri Food Ingredients is doing all we can to minimise this impact, but within this current market environment, product pricing will be impacted.
Due to these currently unpredictable market dynamics, Agri Food Ingredients may not be able to commit to the typical price increase notice periods. Though we will do all we can to assist our customer base in working through this current situation.
We are regularly updating our website with information as it becomes available.
Please be assured that we will make direct contact with any customer if we are experiencing any delays that will have an impact on your business.
Please contact your Account Manager directly if you have any further questions.
Update - 13 March 2020
Agri Food Ingredients is running as usual with no disruption to day to day operations.
With the unfolding situation relating to COVID-19 in Australia and across the world Agri Food Ingredients and our 3PL providers are implementing precautionary measures to minimise the possibility of exposure to all staff and impact upon the business on our ability to deliver product to our customers.
Agri Food Ingredients office is restricting non-essential visitors. Admin staff have been placed on a rotating roster working inside and remotely from the office.
The office will always be manned, contacting the office via email and phones will still be business as usual and impact to business will be kept to a minimal disruption.
Warehouse staff will request all drivers, to wait at the side of their trucks and NOT enter the warehouse or offices. Contact with any driver will result in the warehouse staff member washing their hands in hot soapy water or a hand sanitizer.
All visitors to site will be required to sign in with their name, company name and any other relevant information required.
Each warehouse has their own set of requirements. Please observe and adhere to signage and staff direction.
Drivers will not be asking for a signature upon delivery, the driver will sign for the goods under instruction from the receiver stating the receivers name, time and date of delivery. They will also be recording any additional information that the receiver may require to be placed with the POD.
Drivers will not be entering premises or having any kind of physical contact with receivable staff.
Any person meeting the below criteria will not be allowed to report to work or allowed on site, for a 14 day period as per existing work health protocols –
Had contact with anyone who has or suspected to have the COVID-19 virus.
Has traveled overseas or been in contact with anyone who has traveled overseas in the past 14 days.
Is or has displayed any symptoms of illness or is feeling unwell.
While we do not want to alarm anyone, these precautionary measures are being put in place to help prevent all employee’s on customer sites, 3PL provider sites and Agri Food Ingredients site stay healthy and limit the spread of the virus. This will ensure that Agri Food Ingredients and our 3PL providers continue to provide our customers with continuing product/order deliveries.
We will be continuing to monitor the situation and update as needed any restrictions that we see are required due the changing status of the pandemic.
Update - 6 March 2020
As the Corona-Virus is spreading throughout the world, many customer have asked Agri to guarantee supply of stock for lengthy amounts of time.
Like many businesses involved in the global supply chain, Agri is unable to give anyone complete certainty that we will be able to supply as the situation continues to develop.
What we can confirm, is that the impact we have experienced so far is very minimal. We are continuing to receive our shipments from around the world with no or very little impact.
The only impact we have experienced so far is air shipments out of China, these shipments are now starting to move. Our container cargo has been shipping as per schedule out of China with no or very minor impact.
Agri will continue to assess the situation on a daily basis and will monitor all shipments from affected regions closely.
If we do experience any issues or become aware of a situation that may impact on your business, we will advise as soon as possible