While rising energy costs are nothing new this latest crippling increase in the cost of gas is yet another significant blow for growers.
The NFU has estimated that glasshouse growers could be looking at growing 50% less than last year because of the rise in the price of gas. This statement was echoed by the Lea Valley Growers Association which has asked for state intervention for commercial greenhouse growers by removing levies and tax from gas supply to help subsidise the end user price.
Speaking to BBC Radio 4 Minette Batters the president of the NFU said the prices were ‘making it impossible to grow’ “The only thing is to keep these glasshouses empty”. As a result, the number of cucumbers that will be grown annually could fall from 80 million to 35 million while pepper production could halve from 100 million.
But the rise in prices has been felt across Europe too. Estimates from the Netherlands have suggested the supply of similar crops is likely to fall where an estimated 24billion cubic meters of natural gas a year (about 8% the country’s consumption of the fuel) is needed to heat 25000 acres of high-yielding glasshouses.
European gas prices increased 985% year-on-year, to a record high level in December, and Dutch glasshouse owners turned down the heat needed to grow crops such as tomatoes, cucumbers, bell peppers, and flowers.
The situation is about as bad as it gets and to make matters worse, it is outside the control of growers and compounded by external factors such as the current invasion of Ukraine.
For the past decade growers have accelerated their efficiency levels helped by new technology and different ways of working to help mitigate energy costs But this time around even the most modern energy efficient glasshouses have suffered at the hands of rising prices. For instance, the new Sterling Suffolk operation has ceased tomato production with its glasshouse remaining empty so far this season.
Action is urgently needed. Government must realise that not only is there a cost-of-living crisis for the public but for businesses as well. We need a long-term plan on energy costs to future proof the future when prices rise again not just a short-term fix for this season.
Removing tax and levies is a good place to start. Whether it will be top of the government’s agenda right now though is questionable.
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