With the Middle East crisis dragging on, the food and restaurant industries, which are struggling to secure raw and subsidiary materials, asked the government for emergency support. They voiced concern that disruptions in product production and shipment are becoming a reality as inventories of key packaging materials such as plastic bags, film, and PET containers have been depleted due to unstable naphtha supplies.
According to a joint proposal submitted on the 9th by 13 related groups, including the Korea Food Industry Association, difficulties have arisen in securing key packaging materials. The association said, "Inventories of some items have fallen to about two weeks," adding, "If this situation continues, it will inevitably deal a serious blow not only to product production but also to overall restaurant operations." It said this could undermine stability across the supply chain.
In particular, they said that amid the triple burden of high interest rates, a strong dollar, and high inflation, the added strain of a packaging material shortage has pushed cost pressures close to the limit. The operating profit margin of the food and restaurant industries fell to the 3% range last year, they said, driving a situation in which normal management by corporations is becoming difficult.
In response, they proposed a comprehensive response through cooperation among relevant government ministries, including: ▲ prioritizing supply of raw materials for food packaging ▲ policy support to ease cost burdens ▲ reasonable operation of related regulations and adjustment of implementation timelines ▲ preparing support measures to expedite administrative and customs procedures.
Park Jin-seon, president of the Korea Food Industry Association, said, "The food industry is a core livelihood sector directly tied to people's survival," adding, "The current situation goes beyond the level of individual corporations and is an important moment when instability across the entire food supply chain could expand."
Park added, "To maintain a stable food supply, swift and effective policy support from the government is crucial," and "We hope to see timely policy support that can be felt on the ground."