British fruit growers are on a 'knife-edge' due to double digit cost of production increases, low returns and low confidence, the sector has warned.
British Apples & Pears Limited (BAPL) has published a new set of data that highlights the continued struggles for the UK's top fruit growers.
Over the last two years, apple growers have faced 30% increases in costs of production and received just 8% increases in returns from supermarkets.
BAPL said the situation was 'unsustainable', adding that there was 'such desperation' among the body's members.
Executive chair of BAPL, Ali Capper, said: "When you think about what a good news story our industry should be, it’s heart-breaking.
“The volatility in costs has become the biggest challenge faced by growers, many of them out of their control from labour and energy to the ever-increasing cost of the audit burden.
"We should not be talking about the slow decline of British apple orchards, and generations of family farm businesses at risk of bankruptcy.”
Comments from British apple growers who completed the BAPL survey have revealed the stark situation many of them face.
One said: “I’m retiring from growing apples and my son doesn’t want to touch them. He’s seen the returns."
Another said: “The industry is in crisis. The price setters are killing us”, while one person said: “I have been growing fruit for over 40 years and never found it so difficult.”
A young grower warned: “As a younger solo grower having taken on the fruit farm, I am incredibly frustrated at how little the supermarkets are willing to pay, whilst also increasing 'hoops' to jump through."
Given this situation, confidence in British apple growing is low, with BAPL's survey showing that 70% of growers are less confident than they were a year ago.
Just 3% said they have a ‘true partnership’ with supermarkets, while 45% said retailers only buy on price and that it’s not a true partnership.
And almost half (45%) of grower respondents said they have scaled back their future investment plans.
Ms Capper said that ultimately, it’s not just British growers who are losing out, it’s UK shoppers too.
“The price of apples has increased significantly with the average price in Aldi rising by 12.6%, Lidl 12.1%, Tesco by 10.9% and Sainsbury’s by 9.1%," she noted.
"The averages hide some startling extremes - Lidl’s Oaklands Red Apples 2kg went up by 50%, Morrisons British Apples (six pack) went up 39% and Tesco increased the price of its Rosedene Farms Gala apples (six pack) by 36%.
“Unfortunately, those consumer price increases are not being matched by the much-needed returns to growers.”
What is the sector calling for?
In response to the crisis in the industry, BAPL has set out three changes needed to 'save British apple orchards':
• Returns must be increased to growers to reflect the true costs of production and necessary investment.
• Supermarkets should enter longer-term arrangements with growers to give them the confidence to grow, invest in technology, varieties and automation.
• Supermarkets must also roll out in-store and online merchandising that celebrates British fruit.
