The berry category has been warned to get smarter to protect its margins and refrain from “micro-management of the retail environment” to secure the long-term future of the industry.
Nick Marston, managing director of Berry Gardens, speaking at Fruit Focus this week, claimed signs of economic downturn will challenge the soft-fruit industry to hold its own in a competitive market.
He said: “It is an interesting conundrum as to where you can realistically pitch retails if you wish to remain a substantial industry.
“UK growers supply more than 90 per cent of UK demand in season, which is quite unusual. We have to continue as a mainstream industry, not a niche.
“We really do have to compete, because berries are one of the most expensive fruit products and we have to show the consumer why it’s worthwhile paying more for soft fruit.”
The soft-fruit category as a whole has faced a number of challenges this season, with a two-week delay to the start of strawberry supply and a modest drop in raspberry values.
The rising cost of polythene, fertiliser and labour are taking their toll on UK growers. Marston said the role of the industry is to manage production and sales costs to make enough return to invest in the future. “It’s inappropriate for growers and marketers to indulge in micro-management of the retail environment,” he added.
Alastair Brooks, vice-chairman of KG Growers Ltd, urged growers to get smarter to protect their margins. He said: “Retails have risen from £1.89 to £1.99 a lb this year, which has allowed us to increase net returns to growers - this is a welcome position, but our costs are growing at a faster rate.”
The discussion on costs followed complaints by a Kent grower last week, who claimed a £1 promotion on 454g of strawberries by Asda was “irresponsible retailing”.
Marion Regan, chairman of KG Growers Ltd, predicted the continued growth of the UK category, driven by increasing demand for home-grown fruit. She said: “ Consumers are rediscovering the pleasure of eating strawberries as a quintessential English summer treat. They may have to forego the new car, but strawberries are an affordable treat.”
No comments yet