CEO REPORT
CEO Welcome Welcome to our first edition for 2022 of the Independent Retailer magazine, sharing significant challenges and achievements MGA is managing and advocating for on behalf of members. Over the festive season many of us may have reflected on the past year - Unprecedented. Challenging. Frustrating. Lockdown. Changes. Borders. These words have become commonplace, each representing challenges that have cut down whole industries. Two years ago we did not consider panic buying, wearing of masks, entering a premises via a QR code for COVID-19 contact tracing, COVID-19, Delta and Omicron variants, store limits, social distancing, COVID-19 safe plans, isolation rules, and COVID-19 vaccination requirements for staff and the community. We have witnessed the rise of the Antivaccination movement – or ‘prochoice’ - which furthered members’ frustration and anxiety levels as this group threatened to disrupt the workplace.
We are now having to live in a world of compliance to manage this pandemic. Coupled with these challenges are additional complications threatening food and beverage supplies, including: shortage of shipping containers, shipping pallets and ADBlue (a diesel fuel additive that helps to eliminate emissions), staff shortages driven by employees having to isolate after being in close contact with a COVID-19 infected person, and more recently the shortage of Rapid Antigen Test (RAT) kits to enable a faster return to work of employees in close contact with an infected person but are asymptomatic. MGA has been proud of members and food supply partners. From farmers and growers, freight forwarders, food
and grocery wholesalers, transport, and logistics - you have all helped keep the independent food and grocery sector open and trading. MGA and the Board, congratulates store owners, store managers, staff, and food and grocery suppliers for your outstanding efforts to deliver essential foods and groceries to local communities. It has been almost two years of working with uncertainty and ambiguity, as state and federal governments change public health orders on an ongoing basis to help protect communities. We are now experiencing COVID-19 restrictions around the country, arising from the new Omicron variant rapidly spreading throughout the eastern seaboard states, at an unprecedented rate. Western Australia (WA) continues to avoid infections, but this measure is coming at a high economic and social price with borders being closed and no travel between states permitted. MGA is working closely with the WA Government to share food supply and food security learnings emanating from the eastern states, to guarantee that when the borders open businesses will be prepared, including staff being fully vaccinated with a booster. The WA border was planned to open on 5 February 2022 but owing to the fast spread of the Omicron variant in the eastern states and the low vaccination rates in WA, Premier Mark McGowan has decided to keep the border closed until further notice. For the past two years, MGA has been heavily involved with various federal and state food supply and food security forums. One of these
has been the Minister for Home Affairs Karen Andrews, Food Security and Food Supply Forum. At this table we have discussed potential causes to the interruption of food supplies to communities in which we trade, particularly remote and ultra-remote areas, such as in WA, QLD, and NSW. This forum facilitates collaboration and communication between various government departments, health officials and various COVID-19 recovery directors from all states and territories, as well as industry leaders across Australia. A similar forum has been organised for small and independent food and grocery stores, restaurants and caterers, and food distributor organisations by the Federal Small Business and Family Enterprise Ombudsman, Bruce Billson. The Critical Industries (Food and Grocery) Supply Chain Policy Forum, led by Social Services and Acting Small Business Minister Anne Ruston, has been critical in recognising the devastating staff shortage and food supply issues businesses are facing and discussing approaches to reopen businesses presently closed, such as cafés, bars, and restaurants. With eastern economies opening up and movement restrictions being lifted, business have suffered a difficult trading period. Worker absenteeism has rapidly escalated, and businesses have been unable to trade and offer food and groceries to customers in the usual way. There have been food and grocery shortages experienced in Coles and Woolworths recently. The duopolistic market presence of Coles and Woolworths and their subsequent reliance on large central distribution
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