On Sunday 24 September 2023, BBC Countryfile broadcast a segment on the dire state of the British apple industry. Two British apple growers shared their personal experiences of the challenges they face and how low supermarket returns are causing them to make a loss and remove some orchards.
Andrew Opie, director of food and sustainability at the British Retail Consortium, spoke to Countryfile on behalf of the supermarkets. However, his comments have been criticised by members of British Apples & Pears Limited (BAPL).
“Andrew Opie said that supermarkets were keeping prices low and implied that’s why they couldn’t pay growers a fair return. That’s simply not true.” Said Ali Capper, executive chair of BAPL. “Shoppers are already paying more – 17% more for British apples in UK supermarkets. It appears retailers have increased the prices of apples and pears to cover their increased costs, but not the increased costs of their suppliers. Someone is making a profit, but it’s not growers.”
New data released by BAPL, exposes the dramatic shift in the fortunes of British apple and pear growers. BAPL has analysed the published business results of a number of growers that together represent over 70% of the British apple and pear industry. This analysis shows a dramatic drop in profitability.
Across six major growers the average level of profits has declined by 133%. This means that each of these representative businesses has suffered a very significant reduction in profit with many incurring substantial losses. This was inevitable because while the price of apples to the consumer has increased, input cost inflation to growers ran at around 23% while supermarkets paid growers, on average, only 0.8% more than the previous year.
BAPL growers were also surprised by Opie’s remarks that supermarkets are fully supportive of British fresh produce.
“Talk is cheap.” Said Ali Capper. “For the BRC to claim that retailers are ‘100% invested in our British supply chain’ is disingenuous at best. The numbers do not lie. Apple growers are not receiving a fair return from supermarkets. This is putting the future of British apple growing at risk. It’s a situation that must change and change quickly.
“If retailers really were ‘doing their best to ensure a sustainable future’ as Andrew Opie claims, we would not see farmers pulling out of apple growing and reducing the numbers of new trees they’re planning on planting.”
BAPL was also surprised to hear Andrew Opie ask the government for additional support for the industry. “Shoppers are already paying more for their fresh produce.” Explained Ali Capper. “We don’t want them to have to pay higher taxes to support the industry as well. We want profit-led investment by growers, but that requires a fair return from supermarkets.”