The future of the UK’s fruit and vegetable industry is under threat from the post-Brexit labour shortage and soaring costs, according to an NFU report.
The report, prepared by Promar International, found that costs of production have increased by as much as 27% in the past 12 months.
Change in production costs, autumn 2021-2022
- Tomatoes: +27%
- Lettuce: +20%
- Mushrooms: +17%
- Strawberries: +20%
- Potatoes: +20%
- Broccoli: +25%
- Onions: +21%
- Carrots: +20%
- Apples: +23%
Energy (up 165%), fertiliser (up 40%) and workforce wages (up 13%) were the three major cost drivers. But despite food inflation being at record highs, growers were not achieving the returns needed to run sustainable, profitable businesses, the report suggested.
See also: Cows £200 dearer despite 13% hike in supply
NFU horticulture and potatoes board chairman Martin Emmett warned that the situation could yet get worse for British growers, with energy price hikes likely once government’s six-month price cap ends in the spring.
“The UK horticulture sector strives to be the best in the world. But the viability of producing fruit and vegetables is under the greatest strain I’ve ever seen,” Mr Emmett said.
“A continued lack of a reliable workforce, both in permanent and seasonal roles, combined with sharply rising input costs, particularly for energy, has put many businesses on a knife edge.”
The NFU has written to government ministers and bosses at all of the major retailers urging them to recognise the desperate situation.
It listed four key areas where the sector needed support:
- The industry urgently needs a commitment to lift the cap on the Seasonal Worker Scheme, and for it to be guaranteed for a minimum five-year rolling programme
- Agriculture and horticulture should be classified as a vulnerable sector and receive longer-term energy price support, extending well beyond the initial six-month commitment
- Good-faith discussions should be held with retail buyers about the realities of cost price inflation
- The government’s commitment of delivering a horticulture strategy for England should be developed as a matter of urgency, and to ensure that the rest of the supply chain supports this ambition and works with growers to manage current and future volatility.
