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UK Chippies battered by effects of the war in Ukraine
Andrew Crook, a fish and chip shop owner in the northern English town of Euxton, has been in the industry for so long, he says, that he’s got “vinegar in his blood.”
Crook has seen plenty of ups and downs at work. But the 46-year-old says he’s never seen anything quite like the storms shaking the industry now, as the effects of the war in Ukraine put an iconic British industry on the brink of disaster.
“It’s a bleak picture,” Crook tells us from his home in the nearby town of Chorley, just as a loud shriek interrupts the conversation. “I’ve got a macaw,” he explains. “He can tell when I’m on a call, and he likes to join in.”
Even before Russia invaded Ukraine, the chippies were struggling because higher fuel costs caused by the pandemic were forcing fish trawlers to charge more for their haul.
But Russia’s war in Ukraine has made things even worse. The two countries together produce 75% of the world's sunflower oil, the preferred fry bath for chippies. As the conflict rages, sunflower farming and processing have ground to a halt, while Russian naval blockades and Ukrainian sea mines have crippled exports from Ukraine’s Black Sea ports. Global prices have soared to record highs.
Crook, who also heads the UK’s National Federation of Fish Friers, an industry group, says the cost for 20 liters of Ukrainian sunflower oil has nearly doubled to 50 pounds ($62). The cost of alternatives like Malaysian palm oil is also rising, particularly after Indonesia, a rival palm oil producer, briefly halted its own exports to protect local consumers.
Meanwhile, the industry is bracing for a further blow as the UK prepares to slap an “imminent” 35% tariff on imports of Russian fish as part of a broader sanctions package against Moscow.
Fish and chip connoisseur, Andrew Crook. Twitter / @profryltd
The dish on fish and chips. Known as a cheap, hearty meal that's high in protein and calories, fish and chips first appeared in the UK in the 1860s, when industrial-scale fish trawling came into its own.
The dish quickly became a staple food for the British working class. In fact, during World War II, even as the government was rationing tea, butter, and meat, fish and chips got an exemption to ensure the country's factory workers were well fed for the war effort.
Today there are more than 10,000 chippies across the UK, with an annual turnover of more than $1.5 billion, according to the Federation of Fish Friers.
Crook says that their role in the working-class towns of England goes beyond mere meals. They sponsor local football clubs and charities and even help to keep an eye on people who have no one else to care for them.
“Some of the old people that come into fish and chip shops, we might be the only person they speak to all day,” says Crook. “If they don't come in for a week you do notice, and you start asking around and making sure they're okay.”
But the new price pressures are already forcing many chippies to close. Crook says that a third of them could go out of business over the next nine months.
Fish & Chips Industry Is Battered By Global Food Crisis | Hunger Pains | GZERO Worldyoutu.be
Alex Kliment explores the latest in fish and chips on GZERO World with Ian Bremmer. Watch the video above.
To survive, the chippies are adapting. Some are offering smaller portions, while others are raising prices or supplementing fish with cheaper proteins like sausage. The crisis has also spurred innovation, he says, with entrepreneurs exploring the use of catalytic converters to treat the frying oil so that it can be reused for longer.
But even amid this whirlwind of challenges, Crook is optimistic that the 160-year-old industry will find a way to survive.
“If anyone's ever been over to a UK fish and chip shop, they know there’s not many shy and retiring shop owners,” he says.
“We’re quite loud and boisterous, and we're not known for quitting.”
Watch the full interview above.
Additional reporting by Sarah Kneezle.
This comes to you from the Signal newsletter team of GZERO Media. Subscribe for your free daily Signal today.
The Graphic Truth: How edible oil prices are cooking
Supply chain disruptions and the war in Ukraine have caused a growing food crisis globally, resulting in scarcity of staples and soaring prices.
The crisis has also given rise to protectionist trade policies, with some countries trying to hoard reserves and keep prices down at home. While states like Indonesia temporarily banned exports of palm oil — driving up prices of the cheap cooking oil that most developing states rely on — some wealthy European states have rationed how much sunflower oil consumers can purchase at the grocery store.
The effects of these disruptions in recent months have been felt far and wide. After the temporary Indonesian export ban was announced last month, the national currency in India, the world’s largest importer of palm oil, dropped to an eight-month low. Similarly, Britain’s lucrative fish and chip market has been sent into a tizzy because of sunflower oil shortages, and there are estimates that thousands of fish and chip shops could be forced to close their doors.
We take a look at the global price of palm, sunflower, and coconut oils since 2000.
For more insights on the topic, check out Hunger Pains, GZERO’s special coverage of the ongoing food crisis.This comes to you from the Signal newsletter team of GZERO Media. Subscribe for your free daily Signal today.
What We're Watching: Zelensky meets top US officials, Indonesia hoards palm oil
US officials visit Kyiv
Ukraine's President Volodymyr Zelensky spent Sunday waiting for a visit from US Secretary of State Antony Blinken and Defense Secretary Lloyd Austin, the highest-level American delegation to visit Kyiv since the Russian invasion began. Zelensky reportedly told the senior US officials that Ukraine needs more powerful weapons to resist the Russians. After the meeting, Blinken announced that the US would reopen its embassy in Ukraine (in the western city of Lviv) and pledged more military funding to Ukraine in addition to the $800 million in military support Biden announced on Thursday, which included heavy artillery, ammunition, and tactical drones. But Kyiv is also asking for long-range air defense systems and fighter jets. The Americans have rebuffed similar earlier requests and blocked NATO allies like Poland from supplying Soviet-era warplanes to avoid risking a direct military confrontation with Russia. Meanwhile, Ukraine is trying to set up humanitarian routes for escape from the besieged port city of Mariupol, where an estimated 100,000 people remain stuck with little food, water, or heat.
Indonesia’s palm oil export ban
In the latest ripple effect from the food price crisis spurred by Russia's war in Ukraine, Indonesia on Friday banned the export of palm oil, the most consumed edible oil in the world. President Joko Widodo wants to address a domestic shortage that has caused prices to skyrocket (and Indonesians to protest). This ban is a very big deal because Indonesia is the world's top producer of palm oil, accounting for more than half of the global supply. More broadly, it comes amid soaring prices for cooking oil due to the conflict between the two sunflower superpowers, Russia and Ukraine. The ban is expected to be short-lived and for exports to resume once the country stocks up enough palm oil for the price hike to subside. Until then, Indonesia’s top customers — China and India — will feel the pinch.US Customs to consider petition, audit to lift import ban on Malaysian palm oil producer FGV
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Coronavirus hits operations in district of Malaysia's key palm producer Sabah
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Malaysia's palm producers to recruit prisoners, ex-drug addicts to solve coronavirus-driven labour crunch
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Malaysia to take action against school over 'anti-palm oil propaganda'
KUALA LUMPUR (REUTERS) - Malaysia will take action against an international school for spreading "anti-palm oil propaganda", the education ministry said on Wednesday (July 3), in a sign of Kuala Lumpur's aggressive efforts to defend a big agricultural export.