Rising costs could put 40% of British berry growers out of business by 2026
02 Aug 2024 --- Berry growers have increasing concerns over the future of their industry, with nearly half no longer profitable and 37% considering reducing production or leaving the industry due to rising costs and poor pay from supermarkets, a study finds.
New research by the British Berry Growers (BBG), an industry body that represents 95% of all the UK’s commercial soft fruit growers, reveals that almost 47% of British berry growers surveyed say they no longer make a profit, while 53% assess their financial health as bad, or extremely bad.
The BBG research also finds that 84% of all respondents estimate that they would survive just two years or less without making a profit. If the issues are not addressed, the group warns, four in ten could go out of business by the end of 2026.
No profit after 2020
Almost 90% of growers say they stopped making a profit after 2020 due to the rising cost of production. According to the research, labor, fertilizers, packaging and transport have all increased by £836 (US$1,073) per metric ton for British strawberries in the last four years, contributing to the tough conditions berry growers face.
British raspberries, blackberries and blueberries have increased by £1,911 per ton (US$2,453), £1,996 (US$2,562) per metric ton and £2,326 (US$2986) per metric ton, respectively. The study finds that over half of the investment in producing a punnet of strawberries is hourly paid labor, a cost that has increased significantly over the last four years.
British blackberries costs have increased by £1,996 per metric ton.Nick Marston, chairman of the BBG, says: “Supermarkets are starting to listen. They are recognizing that growers need a fair return to cover the increased costs of production. Otherwise, they’ll simply move out of berry growing. However, relationships with supermarkets have been hurt by the lack of support in recent years — 39% of our growers say their relationship with retailers has never been this bad.”
“We must take this survey as a wake-up call and a sign to take urgent action. The future of this great sector hangs in the balance. It would be a travesty to lose British berries. We need support from retailers in the form of fair returns, but we also need support from the government to ensure we have an uninterrupted supply of pickers during our peak season.”
Taking action
The UK berry industry is estimated to be worth around US$1.65 billion and is expected to reach US$2.18 billion by the end of 2028.
Implementing solutions, such as increasing the length of the seasonal worker scheme visa from six to nine months, could help ensure there are enough resources to pick fruit throughout the extended growing season, according to the BBG.
Marston says a “more responsive” approval process for berry exports from the UK so that growers can take advantage of market opportunities in the EU and beyond could also provide relief.
“This feedback from UK berry growers is a warning — a warning we need to take seriously if we are to secure the future of our iconic berries,” he adds.
