Growers 'fear for future' as costs and labour shortages worsen

A new report has found that growers’ cost of production have increased by 27 percent in the past year alone
A new report has found that growers’ cost of production have increased by 27 percent in the past year alone

Growers across the country are 'fearing for their future' as escalating costs and ongoing workforce shortages continue to impact the horticulture sector.

Soaring energy costs combined with a lack of people to pick crops are posing a 'serious threat' to the future of the UK’s fruit and vegetable sector, the NFU said.

The union's warning comes as a new report by Promar International found that growers’ cost of production have increased by as much as 27% in the past 12 months.

The main drivers are energy prices, which are up 165%, fertiliser which have increased by 40% and workforce costs, up 13%.

Growers of high energy crops such as tomatoes, broccoli, apples, and root vegetables are the most affected.

The report also warns that despite food inflation at record highs, growers are not achieving the returns needed to run profitable businesses.

There are additional further concerns on future energy prices following the end of the six-month price cap, meaning the situation could yet get worse for growers.

The government has been urged to recognise agriculture and horticulture as a vulnerable sector in regard to energy security.

NFU horticulture and potatoes board chair, Martin Emmett said the viability of producing fruit and vegetables was "under the greatest strain I’ve ever seen".

"A continued lack of a reliable workforce, both in permanent and seasonal roles, combined with sharply rising input costs, particularly for energy, has put many businesses on a knife edge.

"Producers of high energy crops in particular, such as top fruit, root vegetables and crops grown under glasshouses, have severe doubts about their business viability."

The NFU said it had been in contact with Mark White, the Groceries Code Adjudicator (GCA), to ensure that he was aware of the pressures growers were under.

He was alerted to the 'unfair' buying tactics and practices many fruit and vegetable growers faced during discussions with retailers.

Mr Emmett warned that it would be 'simply unsustainable' for some farming businesses to continue against the backdrop of the challenges.

"It’s critical that UK businesses are able to have constructive dialogue with their customers about the pressures they are facing," he added.

“To safeguard the future of British fruit and veg, we need sustainable farm gate prices, a commitment from government to lift the cap on the seasonal worker scheme and increase the number of visas available to meet the sector’s needs."