National living wage poses great concern for Scotland's fruit farms

In May, a report by Beacon, which represents independent businesses, said the traditional strawberries and cream could soon become a lot more costly.
In May, a report by Beacon, which represents independent businesses, said the traditional strawberries and cream could soon become a lot more costly.

The national living wage poses a great concern for Scotland's fruit farms along with plant diseases, according to NFU Scotland.

Growers and their employees need assurances as soon as possible that the seasonal agricultural workers scheme or equivalent will be re-instated after Brexit, James Porter, NFU Scotland's Horticulture Working Group Chairman said.

"Generally the two biggest concerns for growers right now will be long term availability of labour and the National Living Wage (NLW).

"Without it, the impact on soft fruit and vegetable sectors in Scotland and the rest of the UK will be devastating.

"In terms of the NLW, we have experienced an unprecedented minimum wage rise of 11.3 percent this year once holiday pay and employers’ NI is taken into account."

'Completely unprofitable'

In May, a report by Beacon, which represents independent businesses, said the traditional strawberries and cream could soon become a lot more costly.

Suppliers expect the price of strawberries to rise this year due to the pressure of the NLW on British farmers, with some predicting the closure of British farms as it becomes an unprofitable operation.

A recent National Farmers Union (NFU) report stated that the impact of the NLW could see growers lose up to 58% of their profits immediately and over the next four years cost fresh food businesses up to 158% of current business profit, making strawberry growing completely unprofitable for British farmers without additional Government support.

Mr Porter said "as growers we should all be keen to see our employees take home a good wage for their hard work, but we have no means of recovering this kind of increase at the point of sale.

"I met representatives from the Low Pay Commission on 6 July along with Grampian Growers to express our concerns. Our message was simply that year on year rises in wages like this are unsustainable, and will have a serious long term impact on soft fruit and vegetable production in the UK."

Peter Thomson, who has 30 ha of fruit on West Haugh and Westfield Farms at Blairgowrie, Perthshire commented: "Cherry prices have held up well as the English crop has been less than half of expectation.

"Blueberries have also held up well as demand is rising over 25 per cent per annum, and supermarkets are also favouring UK fruit over imports. Overall, not too far off "normal".

"From what I hear from other growers, strawberries have been slightly down on yield, but prices perhaps higher than expected, so the year is OK. Raspberries are similar, but variable, as some bad cases of Root Rot have limited yields."

Enough to combat the ongoing NLW increase?

Ross Mitchell, of Castleton Farms, Laurencekirk, said: “From our point of view this has been a very normal type of year. The little bit of a lack of sunshine and wet summer have not caused too many problems.

“Growing wise it has been as steady and normal as you could get really.

“The market though has been very strong with fruit sales continue to rise year on year. Whether it’s enough to combat the ongoing NLW increase is yet to be seen!”

John Brown, East Yonderton Farm, Renfrewshire said: “Here in Renfrewshire our pick your own business has again been greatly affected by the climate, although being in the west, this is nothing new.

“A hot, dry spell of weather from middle of May to middle of June meant an earlier start to cropping than normal - 16 June compared to 3 July last year.

“Wet weather from the off and throughout the season has greatly affected customer numbers and as a result yields in strawberries are down significantly this year - nearly 25 per cent. Losses down to Botrytis another majoring factor.

“Symphony is still the major cropper here and Sonata also performs well. This is the first year with Fenella and Vibrant - jury is still out with those two.

“Raspberries, on the flip side, performed well this year with yields up 10 per cent on the previous two years, despite a slightly smaller plantation. Glen Ample and Tullameen are still major varieties with no new ones this year.

“Gooseberrry and blackcurrants crops were average at best.

“To conclude, difficult season, with disease pressures high throughout. The winner? The weather.”