Carrots face up to dip

The two big issues facing carrot growers this season will be the climate and the economy. Both have storm clouds on the horizon, says Martin Evans, managing director of Fresh Growers and chairman of the British Carrot Growers’ Association.

He reports that over the last six months, the industry has witnessed conditions the likes of which it has never seen before. These include escalating fuel and fertiliser costs, a weak pound against the euro, and emerging world powers such as China and India making their mark.

Against this backdrop, the UK farming industry is coming under increasing pressure, and vegetables in particular are being squeezed.

However, as the sector prepares for another new season, Preston-based Huntapac Produce is cautiously optimistic. “The weather has been quite favourable, especially as May was a dry month,” says Simon Trewin, sales director of Huntapac. “We grow carrots on a national basis, so there will be staggered starts, but we anticipate our first harvests in mid-June from Lancashire, and other areas will come on later. We are hoping for strong sales and volumes this year.”

Trewin adds that bolting of the crop is not expected to be higher than in an average year. “The modern varieties we use help to minimise this,” he says.

However, according to Evans, some early carrot crops endured adverse weather conditions. “Temperatures reached the high 20s in mid-May, yet some growers endured two frosts in the same week,” he tells FPJ. “I’m guessing there will be some bolting in early crops.”

Although the season was initially due to start later than normal, recent predictions forecast carrot harvesting to begin this week (around June 10).

Evans says that despite the challenges, early-season carrots should be of better quality compared to those harvested in 2007, when the crop endured significant rainfall.

With good-quality product on the cards, growers are turning their attention to returns. Trewin describes carrot returns in 2007 as acceptable, but this year he warns the sector is witnessing lower margins in the face of higher production costs. “We are facing very high inflationary costs - fuel particularly, but also labour, fertiliser and land rental,” he tells FPJ.

Evans agrees. Although growers planted cautiously for the 2008 harvest, given the higher costs and lower returns, he predicts that there could potentially be a fall in carrot production in 2009.

Evans is surprised the government has put inflation at three per cent, as he says growers are facing much higher outlay, given the ever-rising costs of fuel, fertilisers, diesel and electricity.

High straw prices are also taking their toll. “We thought straw prices would fall, as more wheat is being grown, but straw prices are rising from £10-15 per bale to £25-30 per bale,” Evans says.

“We hear about record profits for retailers, but growers certainly aren’t getting record profits. I recently heard that the global rice crop is facing problems due to under-investment, and that is the same for carrot producers - that is what worries me. We have got real problems, and the sector is feeling the heat.”

Trewin says input costs have increased dramatically across the board, but the retail price basket remains “quite low”. He adds: “There is a lot of talk about retail price inflation but, in the vegetable arena, there has been little or no price inflation. There are many reasons why retail prices remain low, including intense competition within the retail sector, particularly within the big four. However this doesn’t help our situation.”

Evans blames market forces for the problems facing the sector. “It’s not as if we have stood still, and nor is it because of a lack of ability. We have learnt lots of new skills,” he tells FPJ. “However, we are in a place where youngsters are not coming into the sector and are losing the general will to produce. It can be a tough job, but we need to attract youngsters into the industry.”

Evans says that ultimately, prices need to go up, and this will allow the sector to invest to ensure UK production continues. “I feel prices are being set at board level, not buyer level,” he says.

From a grower’s perspective, Evans says that these are frightening times. “It’s like going shopping with a vague idea of how much things cost but then, when you get to the till, you suddenly find all these inflated prices,” he says.

But when it comes to Chantenay carrots, Evans is more positive. “Chantenay accounts for 10 per cent of the market share in value terms, and it is a product that is not taken for granted, but is moving into the mainstream,” he says. “The popularity of Chantenay shows that, like organic and Fairtrade products, consumers are willing to pay higher prices for food.”

In terms of conventional carrot varieties, Nairobi remains a perennial favourite, accounting for 75-80 per cent of the crop. Huntapac also plants the varieties Nigel, Trevor and Nipomo in smaller volumes in certain areas during particular time periods. Trewin also points out that the producer is always on the look-out for new varieties that have high yields, good eating qualities and can withstand adverse climatic conditions.

Huntapac has recently extended its carrot-packing facility to accommodate growing volumes and higher throughput. “We have a continuous and planned programme of investment, and are always looking to take the business forward,” Trewin says.

Meanwhile, the British Carrot Campaign has enjoyed a good response, and Evans says it is engaging consumers on a mass level. “The carrot season lasts for 10-11 months, so it’s important to celebrate the start of the season in June,” he says.

The campaign will also take a more technical approach this season, and will focus on more research findings. “We are aiming for a more strategic fit, and have assembled a wider group of industry mentors to be involved in the carrot industry to gain a more cohesive overall picture,” Evans explains.

Trewin adds: “I’m all in favour of any campaign that raises awareness about carrots, especially as there is already high customer penetration within the sector. Encouraging higher consumption of a healthy product such as carrots is important.”

SELECT BROMHAM BUNCHING

Wiltshire-based Bromham Growers produces specialist bunched carrots and, according to the company’s Ross Paget, the firm had a “very late” start to the season.

“We began our overwintering carrot crop on May 7,” Paget tells FPJ. “The weather, including 17 days of frost in April, delayed the crop, which was four weeks later than last year and two weeks later than normal.”

Bromham Growers will handle carrots until Christmas and, although it is early days, Paget has reported “exceptional-quality” carrots.

“We estimate that we could potentially handle two million to 2.5m bunches this year, but we are playing catch-up at the moment and there is a long way to go between now and Christmas,” he says.

Paget says it is important to emphasise the new-season crop. “I would like the public at large to know that carrots grown by us could be in our field in the morning and on their plate at dinnertime,” he says. “We are not storing carrots long term, and are working hand to mouth. Consumers are unlikely to get fresher produce than ours.”

In the current climate, Paget also feels that consumers should be made more aware of the costs farmers are facing. “This isn’t just about fuel but also fertiliser and other outlays, and it is impossible for growers to absorb all of the costs,” he says.

Bromham Growers counts Sainsbury’s and Aldi, as well as wholesalers, among its clients.

TAKE AWAY THE STRAW

Scottish vegetable grower Fearns of Aberdeenshire is making the most of its Passive Up Flow (PUF) chill stores - by storing more than 1,000 tonnes of carrots that were harvested and loaded at the beginning of October.

“We have been using IMA Cooling’s chill stores for a number of years to store swede through to July, and had seen the stores in Sweden that were being used for long-term storage of carrots,” explains managing director Alan Fearn.

According to Fearn, carrots that have been harvested later in the year and that are kept under straw lose much of their flavour and texture come the late spring, and especially during May and early June. Indeed, he argues that sugar content changes when the crops are under straw and, in late spring, re-growth will significantly affect carrot sweetness.

Since using the chill stores for storage, Fearn tells FPJ that his customers have given their seal of approval. “We sent our customers carrots in early June, and they are finding it hard to understand how we have been able to produce such high-quality, beautiful-flavour carrots after eight months in chill storage,” he says.

These stores use very low airflow, ultra-high humidity and infinite temperature control to ensure that the carrots are held in a suspended state until ready for washing.

“The chill stores use low amounts of electricity and a very small refrigerant charge,” Fearn explains. “The unique coil and airflow design by IMA ensures totally uniform crop temperatures, and I really believe that this is the future for chill storage in our industry.”

BOOTHS UNEARTHS CARROTS

Booths will be marketing new-season British carrots in its stores from the second week of June.

“Subject to growing conditions, Booths will continue to stock a range of carrot lines alongside the Naturally Earthed carrots this year, which are popular with our customers due to their freshness and excellent flavour,” says Matthew Bruno, Booths’ fresh produce buyer.

At least 95 per cent of all carrots sold by the north-west retailer are from the UK, and Booths only sources from abroad when UK crop is unavailable. “At this stage, Booths will not be introducing any new varieties this year,” Bruno adds.