Arribas supply chain is struggling as a drought threatens the company’s ability to keep its business running, its founder has said.
Key points:The company says its “long-term plan” is to be profitable and will continue to operate in the face of a potential supply disruptionThe firm says it has had to hire an additional 40 people in the last two months, in the wake of the droughtAs of last Friday, the company was “only” able to sell 3,700 litres of gas, a large quantity compared to its current capacity of about 4,000 litres, Arribos CEO Chris Tullo said.
“We’re not worrying about it,” he said.
The company has been forced to raise its prices since the drought hit.
“It’s a very long-term goal and that’s why we’re investing so much in this,” he added.
“As the year goes on, we expect to continue to do business in Australia, but this year, it’s really the first time we’ve had to cut our workforce.”
Arribas CEO Chris, pictured, said his company was able to raise prices as the drought affected its supply chainThe company’s CEO said the company has had a number of new employees hired this year and the company will continue operating in the short term.
Mr Tullos said it had to take a tough line on prices.
“Arriba was very fortunate that the drought came, that our customers and the community came out and supported us,” he told the ABC.
“But the fact that the people in Australia are doing what they’re doing, that’s what matters to us.”
Mr TULLO said the drought also hit the company negatively, forcing it to raise production prices by up to $100 per litre.
“So we had to raise our prices by $100,000,” he explained.
“I’m not going to say that we can’t afford that anymore, but it’s not what we need.”
Mr Arribes chief executive is currently in China, where he is making plans for the company to return to the business.
“The reality is we’re very happy with the situation,” he admitted.
“At this stage, we’re doing the best we can.”
He said the cost of food was one of the main factors in the company not being able to keep up with demand.
“Food is one of our biggest challenges and one that we’re working towards,” Mr Tulles said.
“It’s not something that we’ve always been able to afford.”
Arroyas customers have taken to social media to express their frustration with the company.
“Not having enough food for you, and that you don’t want to give your kids food because you don`t want to pay for it.
We’re all in the same boat,” one Twitter user wrote.”
How are you going to make a living when you don’ want to feed people?,” another wrote.
Arribos chief executive Chris TULLOS: The drought is the main reason the business has to close down”People are saying you’re not going eat,” he continued.
“No, I’m not.
I don’t have a fridge in my house.”
Arriva CEO Michael D’Angelo said Arribaras was a very special company.
The Australian company is known for its unique supply chain and for being a supplier of the world’s best roofing products.
“Our supply chain has always been very well developed, well managed and highly regarded by the roofing industry and by the Australian roofing community,” Mr D’angelo said.
He said he hoped Arribaz would be able to return “to the business that it used to be” in the future.
“If we can do it successfully and be able go back to that, I think we’re going to be very happy,” he concluded.
Topics:environment,environmental-impact,business-economics-and-finance,food-and,health,australia,census,drought,food,environment,business,environment-management,health-policy,environmentals,healthy-areas,environmentaustrial-union,aol-superior-austramark-4600,nsw,virginiaContact Paul BowersMore stories from Victoria