The National Farmers’ Union (NFU) has said that soaring production costs pose “a serious threat” to the future of the UK’s fruit and vegetable sector.
The union referenced a new report by Promar International, which found that growers’ cost of production has increased by as much as 27% in the past year.
Products such as tomatoes, broccoli, apples and root vegetables have been the most affected.
The main reasons behind this have been identified as energy costs (up 165%), fertiliser costs (up 40%) and workforce costs (up 13%).
The report also warned that despite food inflation, growers are not achieving the returns needed to run sustainable businesses.
The NFU said that, with concerns about future energy prices following the end of the government’s six-month price cap, the situation could yet get worse for British growers.
NFU horticulture and potatoes board chair, Martin Emmett, said that the viability of producing fruit and vegetables is under the “greatest strain” he has ever seen.
“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,” he said.
“Producers of high energy crops in particular, such as top fruit, root vegetables and crops grown under glasshouses, have severe doubts about their business viability.
“Growers are doing everything they can to mitigate the impacts, but they cannot do it alone.
“If this pressure continues, it will be simply unsustainable for some businesses to continue as they are. In these unprecedented times, stability and confidence are critical,” he said.
Emmett said that the NFU has contacted the Groceries Code Adjudicator to ensure awarness of “the pressures growers are under” and “the unfair buying tactics and practices many of our members face during discussions with retailers”.
He said it is critical that UK businesses are able to have constructive dialogue with their customers regarding the pressures they are facing.
“To safeguard the future of British fruit and vegetables, we need sustainable farm gate prices, a commitment from government to lift the cap on the seasonal worker scheme and increase the number of visas available to meet the sector’s needs, and for government to recognise agriculture and horticulture as a vulnerable sector in regard to energy security,” he said.
