British berry growers face rising costs and competition from imports

British producers of berries UK berry growers are bracing for a challenging year in 2025 as rising energy costs, wage increases and poor retail profitability put pressure on the sector. Nevertheless, the UK berry market has reached a significant milestone, with a total market value of £2.000bn for the first time, according to British Berry Growers, the industry body representing 95% of berry growers. berries British sold in the United Kingdom.

The growth of the market for berries has been driven by increasing consumer demand, with sales volumes up 4,3% over the past year. Market penetration has also reached 85,3%, demonstrating the wide acceptance of the berries British companies. Since 2015, when the market first hit £XNUMX billion, the sector has doubled in value, posting almost a decade of steady growth.

Last year, the average price of berries The total value of the sector rose by 6,9% over the full year, contributing to the growth of the sector's overall value. In addition, an EY report commissioned by British Berry Growers revealed that the sector contributed £624m to the UK economy in 2023, supported £134m in taxes and created 16.317 full-time jobs.

Despite these achievements, the future of the sector is threatened by rising production costs and slowing growth rates. The compound annual growth rate (CAGR) for sales volume of berries has fallen from 7,8% between 2012 and 2019 to just 1,3% between 2019 and 2023.

Production costs have risen significantly, with energy costs and wage increases being key factors. Between 2016 and 2024, the National Living Wage increased by 59%, putting significant financial pressure on this labour-intensive sector. According to the EY report, 71% of producers experienced increases in operating costs of more than 20% between 2020 and 2023, while 85% of producers reported that revenues did not match this increase in costs.

The pricing practices of the retail have also contributed to this problem. While the average retail price of berries increased by 14,5% between 2020 and 2023, prices paid to producers rose by only 11,2%, insufficient to cover average increases in non-wage operating costs of 37%.

Another concern for British producers is the increasing volume of berries imported. Although the British market for these fruits continues to rise, the share of national product has decreased by 2,54%, while the volume of berries imported has increased by 15,11%. This competition increases the pressure on British producers to remain competitive.

Nick Marston, Chairman of British Berry Growers, stresses the urgent need for collaboration between retailers, policy makers and industry stakeholders. “As we enter 2025, it is clear that collaboration is essential to ensure the continued survival and growth of the UK healthcare sector.” berries. The retailers, policymakers and industry stakeholders must come together to support British producers through fairer prices and greater access to seasonal labour to ensure the future of one of the UK’s most important agricultural sectors.”

Marston also highlights the key role of large retailers in addressing the challenges facing the sector, in particular by offering fairer prices to farmers to help maintain and expand production in response to growing consumer demand.

Source
Fresh Plaza

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