2024 has started with a flurry of activity in and around the supply chain and multiple retailers in particular.
On the positive side of the equation as the abysmal weather continued and flooding affected many production areas, supermarkets such as Tesco announced alterations to produce specifications to keep shelves stocked as growers struggled through the most difficult harvest season many can remember.
Another piece of positive news, also from Tesco, was the news that almost half (46%) of people surveyed are eating more vegetables than they did five years ago. Less helpful was the list of products cited by the supermarket, which included baby corn, chickpeas, lentils, avocado and sweet potato, none of which are major UK-grown crops. However, growers of other crops, such as carrots and asparagus, can also take heart. The news may surprise some as it seems to contradict recent sales data and information from the Food Foundation suggesting that vegetable sales have fallen recently as retail prices have risen.
How we increase value for producers while maintaining prices for consumers is perhaps the biggest challenge our industry currently faces. In light of this, it is perhaps not surprising that these pieces of good news have been tempered by the fact that all the major retailers (including Aldi) have started the new year by ‘investing in’ (their terminology) price cuts for their customers, many of which feature vegetables and fresh produce as key products.
A recent report by Promar International for the NFU showed that growers’ costs of production have increased by as much as 39% in the past two years. These rises have been driven by energy costs (up 218%), fertiliser (up 47%) and labour costs (up 24%). Anecdotal evidence suggests that some vegetable crops have seen higher price rises from buyers than other products, but in many cases, these are still insufficient to cover increased production costs. In such a situation it’s no surprise that many growers are looking to reduce their risk, including reducing production, reversing years of vertical integration, or even quitting vegetable production altogether.
As I write this, MPs have just debated the petition created by Riverford founder Guy Singh-Watson calling for greater protection for growers from supermarket’s buying practices. Outside parliament a number of faceless scarecrows representing fruit and vegetable growers who face bankruptcy within a year. This is the latest in many political reviews of horticultural production and supply chains over the last 12 months, and while most have reached similar conclusions, there has still been little action from the government.
Farmers and growers are notoriously stoic, but at the same time, few other businesses would endure the low returns seen in our industry. As growers look ahead to the spring, it will be interesting to see what crops are actually planted, and whether, for some, the additional hardships caused by winter storms such as Babet, Ciaran, Henk et al. have been the straw which finally broke the camel’s back.
The February issue also includes articles on:
- Onion Agronomy – Fusarium is biggest challenge for onion sector
- International Symposium – More than carrots discussed at global symposium
- Machinery – More hoe development to choose from
- Elsom’s Open Day
- Sakata Open Days
- CUPGRA – no margin for error in the potato sector
To read these and more from “The Vegetable Farmer” subscribe today – find out more here