Ali Capper, Horticulture and Potatoes Board Chairman, reflects on 2016 and some of the key challenges ahead for 2017.
Most will agree that 2016 has been a momentous year for horticulture and potatoes. The NFU has achieved a number of key successes, notably getting two further signatories (Lidl and Co-op) to the NFU Fruit and Veg Pledge; launching our NFU Fit for the Future campaign to tackle fruit and vegetable consumption (which has received very positive retailer engagement); and saving the ornamentals industry £205,000 for the financial year of 2016-2017 by delaying the introduction of plant passporting fees and charges.
There are also some existing wins that we should not take for granted. For example, we remain thankful that the industry now has GSCOP and the Grocery Code Adjudicator, Christine Tacon, to oversee the top-10 retailers' trading practices in fresh produce. The NFU continues to feed into the GCA review and is requesting an extension of remit that includes both ornamentals production and a wider range of retailers.
In addition, we were pleased to see Tesco introduce a new long-term contract for potatoes in September this year, with producers being given direct contracts with Tesco and a three year rolling commitment which will guarantee in advance, the volume of the crop that the supermarket will buy. Initiatives like this that provide a greater level of security, confidence and transparency to growers: very much within the principles of the NFU’s Fruit and Veg Pledge. We hope other retailers will take note and consider this type of arrangement going forwards for the benefit of the whole industry.
But despite these wins, 2016 has also been filled with significant challenges.
The announcement of the National Living Wage brought with it considerable reservations that the government's planned mitigation measures did not adequately protect the horticulture and potatoes sector. Whilst the NFU agrees with the Living Wage in principle, we want to see measures that would be appropriate for our sector to help offset the large, unprecedented and un-consulted price hike. We are still seeking mitigation for there to be no requirement for Employers National Insurance contributions for seasonal workers and a further exemption for pension auto-enrolment requirement for seasonal workers. In an industry so dependent on large volumes of workers, it remains imperative that further measures are implemented.
With June came the EU referendum, and, for many, the unexpected result of Brexit. This immediately introduced a raft of uncertainty. The NFU has been working to develop its priorities, both on a national organisational scale and within the horticulture and potatoes team. At the moment, provision of seasonal labour is our number one priority. The availability of labour is diminishing to the point where we need urgent action and it is imperative that the government commits to the trial of a Seasonal Agricultural Permit Scheme for 2017. The NFU's actions can be outlined in the latest roundup of NFU actions on seasonal labour.
Then, in the autumn came the new threat of business rates, with growers receiving ratings by the Valuations Office Agency (VOA) facing significant charges. The NFU is seeking a change in the law to ensure that horticultural businesses are exempted from business rates: we are aware of the issues and working to find a solution for those affected. However, in order to help our lobbying, it is important that the NFU hears from you to help develop our evidence-base on the impacts of the implementation of business rates. Therefore, if you have received a letter from the VOA regarding the introduction of new rates, I would urge you to call the NFU's hotline, CallFirst on 0370 845 8458 for support.
2017 will likely bring with it a fresh set of challenges, not least the triggering of Article 50. Seasonal labour will remain a priority area for the NFU that needs resolution in 2017. We will continue to push for a Seasonal Agricultural Permit Scheme to help ensure growers have access to quantity and quality of seasonal labour they need to successfully run their businesses. In addition, the Board’s other Brexit priorities such as trade and POs, crop protection and plant health will need to be developed further and fed into the Government with increasing levels of vigour as the Brexit negotiations begin in earnest. We also need to focus energy on the low margins currently crippling many growers and push back on the increasing price pressures that growers are facing.
But with these challenges come the prospect of new resolutions to some of the issues that are still of concern. Yes, there is much to do, but the NFU Horticulture and Potatoes Board will continue to strive on its members' behalf and face these challenges head on.
So, I wish you all a very Merry Christmas and a Happy New Year. Thank you for your support over 2016 and I look forward to working on your behalf next year.
Ali Capper (Horticulture and Potatoes Board Chair)