The ongoing Covid 19 virus situation remains a major concern to everyone with the damaging impact on people and the economy becoming more and more evident. It is vital that we continue to work together to contain and combat the spread of the virus to protect our families, friends, colleagues and businesses and to keep animals fed.

The Premier Nutrition team leading our planning and actions to manage the impact of the Covid 19 situation is well established. The main actions taken so far include:-

  • Segregation of our three factories and segregation between the day and night shifts in each factory. The Maintenance Engineering Team and QA Team have also been split across our sites.
  • A significant number of additional temporary factory and maintenance staff have been recruited and trained during the past month to provide cover for those who are ill or self-isolating.
  • All key support functions (Customer Services, Production Planning, Technical Services, Finance) have been relocated to home working.

Our business has been well supported by our IT colleagues who have successfully set up a large number of people to work from home rather than their usual office base. New communications technology has been used extensively to enable effective operations to be maintained.

There has been disruption to ingredient supplies but we have worked closely with our suppliers, and benefitted from the global reach of our parent company ABF, to ensure supply to our factories has been maintained.

As we look forward to the coming months;

  • Ingredient manufacturers in China are reopening factories, although it will be a number of weeks before meaningful production resumes.
  • There is growing evidence that supply chain logistics will create further supply problems.

Shipping complications exist, as the system gradually gets the right number of empty containers into the right locations, not helped by the port lockdown in India. The consequential impact of delays to shipments out of Europe and the US remain. This situation could be further exacerbated as major shipping lines cancel sailings in order to balance supply and demand, with concerns regarding the financial viability of several carriers. 

The upcoming months will continue to be marked by increased instability. Ingredient prices have risen sharply and there is scope for further increases. Against this background, Premier Nutrition has:- 

  • Increased stock levels of key ingredients.
  • Worked with suppliers to plan the supply of ingredients though to the end of September.

In these uncertain times we believe it is wise to plan further ahead as continuity of supply is paramount. Our objective is to keep our factories operating and our customers supplied.

In recent weeks we have experienced very high demand for our products in response to the consumer led “panic” buying surge. In challenging circumstances everyone at Premier Nutrition has worked hard to maintain business as usual. The support and cooperation of our customers has been very much appreciated during this period.

Whilst some disruption cannot be ruled out and some extension of our usual order lead times is possible, I believe we have taken appropriate steps to manage the situation. Please be assured that we will do our very best to continue to supply and service our customers.

Best wishes in these difficult times.

Chris Rackham

General Manager.

20.4.20