The retail price squeeze continues to bite

Andrew Burgess_43476

There are more pressures than ever before on UK self-sufficiency, but the as-yet-unknown trade deal from Brexit is only part of the story. There continue to be significant issues closer to home, with the unrelenting retail price wars putting greater pressure on growers’ incomes.  While there has been an increase in the use of contracts in the fresh produce sector in recent years, their relatively short term nature still means investment decisions carry a high level of risk.

These pressures, coupled with labour shortages and input cost inflation, are putting a squeeze on the industry that may well see more of our food produced overseas.  This would be bad news for our industry, for the economy, and for the UK consumer.

The Groceries Code Adjudicator has certainly helped stamp out some of the bad practices we had become accustomed to, but there is only so much it can do to protect growers from the David versus Goliath nature of dealing with large multinational retailers.

Developing the PO scheme to enable more growers and more businesses to invest on farm could be an important step in providing greater security.  This, in turn, would lead to greater confidence and the ability for growers to consider more carefully who they supply and under which terms.  That's why the NFU is working alongside the British Growers Association and other important stakeholders to secure the future of the PO scheme and to develop it for the benefit of the wider horticulture and potatoes sector.

I just hope we see a more sensible pricing strategy by retailers in the years ahead so that these efforts are not in vain.