A Kent soft-fruit grower has spoken out against a rock-bottom price promotion on strawberries in Asda, claiming it is “irresponsible retailing” that will give consumers a false impression of how much a punnet should cost.
The six-day price cuts, in store from last Wednesday to this coming Monday, have seen the price of a 454g pack of strawberries drop to just £1.
The berry grower, who produces 400 tonnes of strawberries and 85t of raspberries every year but who asked not to be named, told freshinfo: “Offering fruit at prices below the physical cost of production for us only sends out the wrong message to consumers that the fruit can be cheaper than it is, even if they are absorbing the cost. There is not masses of fruit out there at the moment. This is irresponsible retailing by Asda.
“Now we are going to get phone calls from all our customers asking how we are going to respond to this, and we will be forced to take below cost returns this week.
“If this situation continues, we could go out of business.”
He urged the retail sector to recognise that production costs have continued to increase, with energy and labour costs wracking up massive input costs.
He claimed that £1.99 a lb would make for a reasonable profit as it would secure a £1.40-1.50 gross return, but he insisted the current prices at Asda are “a mile away” from what UK growers need.
An Asda spokeswoman confirmed that the retailer has taken the hit from the promotion, and has not passed on the cost of the price cut to its growers or suppliers.
She told freshinfo: “The reasoning behind this promotion is to offer our customers the chance to buy more fruit, especially in the current climate in which people are watching their purse strings.
“All the promotions are funded by Asda and we have made sure that growers have not taken the hit.”
Seasonal Berries, which represents more than 90 per cent of UK berry growers, declined to comment.
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