Consumer goods could be in short supply during an outbreak of Omicron

Groceries, complex electronics and furniture could be hard to come by if an outbreak of Omicron were to strain national supply chains.

Brad Olsen, senior economist at Infometrics, said that based on the experience of other countries, Omicron could cause more supply chain disruption domestically than previous Covid-19 variants.

“The supply chain issues caused by Omicron could really hamper New Zealand’s ability to move goods,” Olsen said.

Motor carriers and major supermarkets would have contingency plans in place in the event of an outbreak, but consumers should expect delays for some products, he said.

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Brad Olsen, senior economist at Infometrics, says the impact of an Omicron outbreak on consumer goods could be greater than any outbreak so far.

MONIQUE FORD/Stuff

Brad Olsen, senior economist at Infometrics, says the impact of an Omicron outbreak on consumer goods could be greater than any outbreak so far.

“Consumers should expect delivery delays in supermarkets, which will hopefully lead to bare shelves in the short term and fewer options at major commercial suppliers,” Olsen said.

The extent of an outbreak’s impact depends on the industries in the country in which it occurs, he said.

“If it starts to affect the port sector, imports of goods such as electronics could be difficult to enter, if it affects the trucking and road transport sector, the movement of domestic goods could be more difficult.”

Consumer goods whose supply levels need to be monitored would be medical supplies, foodstuffs and retail goods such as electronics, IT equipment, furniture and household hobbies, he said. declared.

Don Braid, chief executive of Mainfreight, said Omicron did not change the way the company prepared for an outbreak.

Don Braid, chief executive of Mainfreight, says the shipping and transportation company is in a good position to handle a potential outbreak of the Omicron variant.

Provided

Don Braid, chief executive of Mainfreight, says the shipping and transportation company is in a good position to handle a potential outbreak of the Omicron variant.

“We now have access to rapid antigen tests which we will use regularly, our vaccination rates are close to 100% and we are also running a booster program,” Braid said.

The potential for staff shortages caused by a more transmissible variant of Covid-19 was not a big concern for Braid, who said the company was confident it had enough people on deck to deal with a epidemic.

“We’ve managed to navigate our way through the last two outbreaks, and we’re confident we’ll be able to get through another one.”

Countdown spokeswoman Kiri Hannifin said the supermarket was looking to Australia for lessons on how to better manage an outbreak.

Supermarkets in New Plymouth are already feeling the effects of Omicron fears, as toilet paper is running low in some stores.

Simon O’Connor / Stuff

Supermarkets in New Plymouth are already feeling the effects of Omicron fears, as toilet paper is running low in some stores.

“We are working closely with our colleagues in Australia to understand the likely key pressure points Omicron will create in our supply chain and to ensure that we have procedures in place to manage this,” he said. she declared.

Hannifin said Countdown staff had learned several lessons from the August lockdown and were well prepared for another outbreak.

Thousands of employees were off work during the August outbreak and a number of measures were taken to manage the situation, she said.

Store opening hours have been reduced, some stores have been temporarily closed and staff have been redeployed to areas most in need, she said.

Besides international supply shortages, most Countdown stores were well stocked, she said.

Foodstuffs spokeswoman Emma Wooster said the company, which owns the Pak ‘n Save and New World supermarket brands, had the advantage of learning how the variant was affecting supply chains overseas. .

“As you would expect, we have recently reviewed our operating plans and procedures with the arrival of Omicron in mind. Although we have reactive plans ready to use, we continue our vigilance with all the existing protocols that we already have in our Covid-19 protection toolkit,” she said.

Wooster said that during the August lockdown, all Pak ‘n Save, New World and Four Square stores were able to stay open, giving him confidence that Foodstuffs would be able to handle an outbreak of Omicron.

Sunny Kaushal, chairman of the Dairies and Business Owners Group, said dairies would have an even harder time getting supplies than supermarkets.

“Once supermarkets are full and have a monopoly on supplies, it will be difficult for dairies and other small retailers to stock up. Packaged foods, toilet paper, oils, all those things that we sell, and they will have to be imported. It will be difficult,” he said.

Kaushal said a number of dairy owners were concerned about the impact of Omicron on their business.

“We have seen how much of an issue this is causing in Australia, and we can expect potentially greater disruption in New Zealand as we are more isolated. We have to prepare now,” Kaushal said.

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