Coronavirus: shelve the shopper panic, says minister Karen Andrews

Australians have been warned to expect far less choice at supermarkets as the coronavirus outbreak sets in.

Australian Industry Minister Karen Andrews says, ‘we’re not likely to run out of bread, there just may be some differences in the choices people face over the coming weeks’. Picture: AAP

Australians have been warned to expect far less choice at supermarkets as the coronavirus outbreak sets in, but Industry Minister Karen Andrews says manufacturers are well placed to deal with disruptions to the supply chain.

As Ms Andrews prepares to convene a roundtable meeting on Wednesday with business groups, manufacturers and key stakeholder bodies to discuss emerging supply impacts, she said panic-buying was unnecessary and running out of toilet paper was not going to be an issue.

“Many of our food manufacturers have an inventory of four weeks-plus and are manufacturing and have increased the level of their manufacturing over the last week in particular,” she said.

“In the case of Kellogg’s, one of their premium products is Corn Flakes that’s selling fast at the ­moment, but I am assured they have sufficient inventory that they are not concerned.

“What may happen over time is there’s less choice. You might only be able to buy … just a loaf of bread that is either white or it is wholemeal, there won’t be a wide variety of products.

“We’re not likely to run out of bread, there just may be some differences in the choices people face over the coming weeks.”

Shoppers have been panic-buying toilet paper in response to the coronavirus crisis. Picture: AAP

Many manufacturers were increasing output while they had a “full contingent of workers”.

Medicines Australia CEO Elizabeth de Somer, whose member companies invent, manufacture and supply medicines and vaccines, said there were no supply interruptions anticipated “at this time” as a result of COVID-19.

She said medicine companies commonly kept safety stock of three to six months’ worth of products though they were looking at their supply chains “carefully”.

“We’ve heard concerns from prescriber groups that some people might approach medicines like they do toilet paper, stock up months’ worth of supplies of existing medicines. There’s no reason to do that,” Ms de Somer said. “There’s also concerns pharmacies might stockpile for their pharmacies to cope with increased demand; again, that’s not helpful.”

The Australian Logistics Council, representing companies in the heavy vehicle, freight transport and logistics supply chain, said ­diminishing volumes of containerised and air freight to and from China would have implications for its members — many of which were already operating under tight margins.

“Given continued uncertainty over how long the crisis will last, industry will also be looking for ­initiatives that will help stimulate activity, including tax breaks for investments in freight transport activities and investing in freight transport infrastructure that will enhance the resilience of our supply chains,” ALC chief executive Kirk Coningham said.

Australian Chamber of Commerce and Industry CEO James Pearson said the construction industry, which sources a significant proportion of its building material supplies from China, was “particularly exposed” to supply chain ­disruptions.

More than 60 per cent of the $6bn worth of construction-­related materials are sourced from China, according to the Australian Construction Industry Forum.

Mr Pearson urged the government to “turbocharge trade agreements” as a medium-term way to address supply chain concerns in order to expand access to new markets and create additional sources of supply.