Turning to new trade routes and changing long-held business practices have helped UAE food producers and retailers to navigate the uncertainty caused by the Iran war.
The closure of the Strait of Hormuz meant firms had to be creative to ensure minimal disruption to food supplies.
For some retailers the main challenge was finding suppliers closer to home, no small ask when about 80 per cent of food in the UAE is imported.
The conflict meant products being imported by sea could take up to 70 days, which is a problem for items with short shelf lives, said a senior figure from the Lulu supermarket group.
“It is more convenient to source from local companies rather than importing essentials,” said Shamin Sainulabdeen, director of private labels at Lulu Group International.
The challenging logistics and increasing costs have meant the supermarket firm, which has branches in all GCC countries, has had to make significant changes to where it sources stock.
The focus has shifted to finding similar products to those typically coming from Europe and North America in Asian markets.
“We are not waiting for this [situation] to get corrected. We made our own supply chain,” said Mr Sainulabdeen, speaking to The National from the Global Food Week conference in Abu Dhabi.
“Now we are bringing chartered flights and ships to all the GCC countries where we have outlets, and this is how we manage it: shifting of sourcing from distant proximity to close proximity.”
The supermarket firm has also been chartering entire vessels to speed up deliveries, where previously its orders would be shipped with those from other companies.
“We are chartering vessels from India, from Thailand, China, Indonesia, from Spain, Turkey, Italy,” he said.
“This is the only way. Usually it was going from different manufacturers before, but nowadays we take the initiative to bring all the shipments together and charter vessels exclusively for us.”
Challenging times
Shipping has been a major recent challenges for United Foods, which manufactures essential goods such as oils and ghee. The company took a different approach by placing maximum orders for raw materials in advance.
While this method is still affected by global supply chain fluctuations, it keeps the price of the materials low which in turn can benefit the consumer.
“Even while the war was happening, we had already made the future bookings,” said Mohamad Ziad Al Najjar, United Foods B2B senior manager.
He said that the company placed orders several months in advance to maintain its supply.
“Even though there is a supply chain problem … when we are receiving items in bulk it is maintained for up to five months,” said Mohamad Ziad Al Najjar, United Foods B2B senior manager.
Al Ain Farms Group, on the other hand, doubled down on its home-grown products, and regards local manufacturing as a priority given the positive reputation of UAE products.
“The strength of the UAE comes with being an international mix, leveraging its legacy, heritage with the traditions of the UAE, and mixing it with international best practices is the only way to be able to be competitive and succeed,” said chairman Tareq Al Hosani.
“The thing that I'm assured of is the value of the 'made in the UAE' slogan. It does create value. People understand and recognise that UAE is a very well regulated market. Food security and health and safety is not something to be tampered with in the UAE,” Mr Al Hosani said.
Government backing
Support from the UAE government has been a major factor in being able to navigate the difficult period, companies told The National.
“They are even calling us [asking]: 'Do you have challenges, issues of receiving your goods?' said Mr Al Najjar, praising the government's support for manufacturers and traders.
Building resilient supply chains was a big talking point at Global Food Week this year, with an emphasis on improving efficiency using artificial intelligence.
“Our focus this year is to move from being agile to being ready, focusing on readiness, future-forward thinking, as well as focusing on resilience and I think [the UAE] has shown great results,” said Sumaya Al Marzooqi, official spokeswoman for Global Food Week.
