Business Leaders' Forum
Chris Thomas
Tulip ceo Chris Thomas used the Business Leaders’ Forum to outline the impact that the horsemeat scandal had made on the food and drink manufacturing industry.
“There was an [initial] trend among our major customers to go for UK materials and try to shorten their supply chains. It [the horsemeat crisis] also raised questions about long-term supply, particularly in light of changing requirement in the Far East and demand for UK-type products.
“There’s a broad issue that the supply chain integrity and the cost of that, particularly with more frequent and rigorous testing to make sure that’s the case, raises a question on ultimately who will pay for a greater need for security and trust.”
Thomas said the scandal had caused a profound reaction from Tulip’s customers, who were now seeking three to five year contracts.
“That is as a direct reaction to long-term security and trust in the supply chain,” he added.