Despite demand for berries rising to record levels over the past decade, British growers say they are concerned about whether they will be able to survive the economic challenges ahead.
Soaring labour, production and energy costs – along with lower-than-expected returns from retailers – could put already stretched thin businesses in jeopardy. More than 8 in 10 growers say that operating costs are outpacing revenue.
Meanwhile, as retailers have raised prices by nearly 15% since the start of the pandemic, growers are only seeing about 11%. They say that is not keeping pace with non-wage cost increases of more than 35%.
“Without their support, growers will struggle to expand production and meet the ever-growing demand for fresh British berries,” says Nick Marston, chairman of British Berry Growers. “This would be a tragedy when the ongoing growth of the overall retail market gives a huge opportunity to increase our UK home production and self-sufficiency.”
The market for UK-grown berries reached the £2 billion mark for the first time this year, accelerated by sharp demand. Market penetration is now more than 85%.
“We are immensely proud of reaching this milestone, and of the industry’s resilience in the face of challenging operating conditions,” Marston says. “But it is also clear that there are very tangible risks which threaten the industry’s future. In particular, it’s clear that retailers have a significant role to play in the industry’s recovery.”
Dependent on inexpensive labour over many decades, the lack of returns from retailers and a nearly 60% increase to the National Living Wage over the past eight years is putting the pinch on growers. Another is operating costs, which have ballooned by 20%. If imports from other markets continue to increase, the sector likely will need help in the future.
“It is clear that collaborative action is essential to ensure the survival and continued growth of the British berry industry,” Marston says. “Retailers, policymakers, and industry stakeholders must come together to support British growers, through fairer pricing and extended access to a seasonal workforce, to ensure the future of one of the UK’s most important agricultural sectors.”
