Rising wages hit British strawberry growers
The British berry growing industry has warned its future is under threat despite its value rising to £2bn for the first time.
According to industry body British Berry Growers, rising energy costs and wage increases will continue to create ‘challenging circumstances’ for fruit farmers in 2025.
The latest warning comes after the British Berry Growers said in July 2024 that two-fifths of British growers of strawberries and raspberries could go out of business by the end of 2026 amid rising costs and poor pay from supermarkets.
Now the organisation has said a lack of ‘fair retailer returns’ has also been cited by growers as a continuing issue.
According to British Berry Growers, the industry body representing 95 per ent of British berries sold in the UK, the British berry market has reached a total market value of £2bn for the first time.
‘There are very tangible risks which threaten the industry’s future’
Nick Marston, chairman of British Berry Growers, said: “We are immensely proud of reaching this milestone, and of the industry’s resilience in the face of challenging operating conditions.
“But it is also clear that there are very tangible risks which threaten the industry’s future. In particular, it’s clear that retailers have a significant role to play in the industry’s recovery.
“Without their support, growers will struggle to expand production and meet the ever-growing demand for fresh British berries.
“This would be a tragedy when the ongoing growth of the overall retail market gives a huge opportunity to increase our UK home production and self-sufficiency.”
The market valuation comes after it hit the £1bn in 2015 while in the last year, the average year-round price of berries has increased significantly by 6.9 per cent.
According to a new EY report commissioned by British Berry Growers, the British berry industry added £624m to the economy, as well as contributing £134m in taxes, and supporting 16,317 full-time equivalent jobs.
However, the report also reveals that the rate at which the industry has grown has significantly decelerated in recent years, with the Compound Annual Growth Rate (CAGR) in the volume of berry sales dropping from 7.8 per cent between 2012 and 2019, to just 1.3 percent between 2019 and 2023.
The industry body said the reasons for this declining growth are primarily centred around the rise in the costs of production, such as rising energy costs and increases in the national minimum and living wage rates.
It added that the industry’s recovery is “not being sufficiently supported by fairer retailer returns”.
It said that though the average retail price of berries rose by 14.5 per cent between 2020 and 2023, the average price paid to growers by retailers only increased by 11.2 per cent in the same period.
Marston added: “As we start 2025, it is clear that collaborative action is essential to ensure the survival and continued growth of the British berry industry.
“Retailers, policymakers, and industry stakeholders must come together to support British growers, through fairer pricing and extended access to a seasonal workforce, to ensure the future of one of the UK’s most important agricultural sectors.”