Posted at 23 March 2020
Diana Food carefully and regularly monitors the situation related to the development of the COVID-19 situation and its potential impact on our operations and business activities.
In this context, we are highly committed to preserve the health of our employees and ensure stable and un-disrupted supply of our products.
Health and Safety
We took prevention and risk mitigation actions:
- Set-up of dedicated resources to manage pandemic risks
- Follow the local authorities’ and WHO recommendations to protect our employees and limit the impact of the coronavirus outbreak, of which the following measures :
• Restriction of business travel and visitors on-site
• Re-enforcement of hygiene rules (exact guidance on hand washing, no hand-shakes etc.)
• Increased cleaning and disinfection protocols
• Preparation of work-from-home and segregation guidelines, etc…
- Availability of sanitary equipment, subject to changes in supply times.
Business Contingency plans
We are reinforcing business contingency planning to provide our customers with the continued products and services with minimal interruptions even in the case of unforeseen emergencies such as the corona-virus outbreak.
Diana Food is currently reviewing stock positions on key items in order to adapt its level of stock to the situation.
However, we remind you that our inventory positions are typically built up according to forecasts and contracts, and constantly adjusting according to supply and demand, so any additional need or change in phasing will require an adhoc analysis before confirmation.
Therefore, with a view to provide you with most accurate information, we would encourage you to place actual orders which will ease elaborating a qualified answer in a timely manner. Likewise, we would appreciate if you could inform us in case of your own plants lockout, so that we can possibly redeploy supply.
As for the majority of our purchased raw materials and ingredients, a dual sourcing is implemented, allowing us to significantly reduce the risk of supply disruption.
Our industrial global footprint based on 11 facilities in Europe, North America and Latin America allows us to switch the manufacturing of some products from one site to another. Additionally, we also rely on a list of approved subcontractors which can take over on some production steps if necessary.
In addition, we would like to update you on the transport situation. Ground transportation has been so far marginally impacted, our logistic division Diana Trans is monitoring carefully the situation and will inform us as soon as there are logistic flow disturbance or restrictions. However, international sea-freight and airfreight capacity remains as a severe issue, especially on the Europe-Asia route and no improvement is foreseen by our logistic partners before May at least. In close cooperation with Diana Trans, we are doing our best to minimize any inconvenience and, since the beginning of this issue, we have been able to fulfill regularly all existing orders with minimal delay if any. We keep monitoring the situation so as to evaluate and prepare potential mitigating actions in case of new developments that can impact our supply chain.
We appreciate your understanding that at this point in time, we cannot provide you with more detailed information. We are focused to continue our risk mitigation and therefore would like to kindly ask you to refrain from requesting very detailed information. We will keep you informed about further developments as timely as possible.