The soaring cost of energy and a lack of labour to pick crops are posing a serious threat to the United Kingdom's fruit and vegetable industry. These are the finds in a report by Promar International to measure the real impact of the cost pressures on farmers.
It has found that the cost of production has increased by as much as 27% over the past 12 months. Products such as broccoli, apples, root vegetables and tomatoes are the most affected.
The main drivers are energy, increased by 165%, fertiliser up by 40% and employment costs up by 13%. Importantly the report warned that although food inflation is at record highs, producers are not getting the returns needed to sustain their business on a profitable basis. There are additional concerns on future increased energy prices after the end of the government's six-month energy cap, with the situation likely to get worse for British producers.
Britain's National Farmers Union, who commissioned the study, wrote to all retailers to inform them of the results of the report. It called on all buyers to discuss with suppliers the sustainable market pricing with urgency.