With drought and other factors making food markets volatile, it’s important to prepare for any renegotiations on price.
Seven water companies in the UK announced they were imposing hose pipe bans from 5 April and meteorologists predict drought conditions will spread. Farmers will be seriously affected; price rises are a continuing trend and drought means businesses in the food supply chain will feel the impact over the summer. Those on fixed price contracts will find themselves bound to supply products at a loss and that will cause many to try to negotiate. So what can businesses do to try to manage their contractual position?