A lot can happen in 12 months - just ask any UK cucumber grower. This time last year, they were facing soaring gas prices and many predicted a volatile and challenging season.
While the higher costs claimed some casualties, with some smaller growers turning to less energy-intensive crops such as lettuce, producers for the most part are in a more optimistic frame of mind.
“The spot price for gas is below seasonal norms,” says David Schellingerhout, managing director of Glen Avon Growers. “Last year’s high prices were due to cold weather across Europe, high oil prices and most significantly for the UK, a restricted supply through the interconnector.”
However, the implementation of two gas supply pipes from Norway and the Netherlands this year has assuaged fears. Providing gas is available from the continent, Schellingerhout says it shouldn’t be a problem supplying the UK.
Indeed, it is hoped the underwater Langeled pipeline, a £5.5 billion link that connects the Norwegian city Nyhamna to Easington in East Yorkshire, will provide some 20 per cent of the UK’s peak winter fuel demand over the next 40 years.
Brian Hibberd, managing director of Abbey View Growers, acknowledges gas prices are lower and the situation has improved since last year. However, there is still a concern for some growers, especially those who signed up to one-year contracts.
“Last March, spot gas prices rose as high as 195p a therm for a couple of days,” Hibberd tells FPJ. “While most growers don’t work on spot prices, they did worry and some got scared. This year’s prices have almost returned to 2005 levels and some growers will be starting out the season with cheaper prices. Those who secure gas on a monthly basis will particularly benefit.”
However, sources feel it is premature to think the gas situation has been completely resolved. Schellingerhout says the current, relatively low price is only a short-term measure and any potential shortages in supply will see the UK suffer once again.
“So in a nutshell, energy remains a big concern because it remains a big percentage of our costs and is liable to go skywards at anytime for any number of reasons,” he adds.
Nevertheless, the cucumber industry has been boosted by its ability to reduce energy consumption using thermal screens and the sector can at least be confident of a better energy price situation for 2007.
When it comes to cucumbers, light and weather are two major issues. Glasshouses experienced low levels of light at the very beginning of January although the situation improved in weeks three and four, says Schellingerhout.
Hibberd agrees: “Light levels have been better than last year but there is the danger that if the current light levels continue, some growers will be tempted to leave cucumbers on the plant and plants will be strained.
Furthermore, Steve Cornwell, chairman of British Fresh Produce Group (BFPG), says harsh weather in early February could also have an effect.
That aside, producers feel 2007 could shape up to be a good season. Although the UK production area is down by about three per cent compared to the 2006 season, domestic growers are likely to face lower competition from Spain this season. According to UK producers, Spanish growers endured very high temperatures during the pre-Christmas period, followed by frosts in mid-January, leading to quality issues.
“It is possible that early-season UK cucumber production could come into a market that is short of good-quality product, which will hopefully translate through to good early prices,” Schellingerhout speculates.
Cornwell predicts volumes will generally be more spread out this year and prices will be more stable. “There is a shortage of cucumbers now in Europe and prices are very quickly getting stronger - so the early season will be good,” he adds.
BFPG has staggered its plantings in order to consolidate costs but also ensure it has the volume when seasonal demand kicks in around late March /April. Cornwell says: “This coincides with our extension of our Canary Islands plantings. The new crop supplies the UK with larger fruit because early English cucumbers are always smaller.”
BFPG has taken on more nurseries and Cornwell estimates the group’s acreage will rise some 20 per cent this season.
While UK cucumbers are available from mid February, sales really begin peaking later in the year. According to Hibberd, demand rises during the first heatwave, which can hit during May. “It’s the time when the barbeques begin, everyone can’t be bothered cooking and they want to eat salads instead,” he says.
“Good weather creates strong demand and hopefully if the consumer has eaten a good-quality product and enjoyed it, then repeat purchases will follow.”
Furthermore, Schellingerhout says UK cucumber demand is growing at one to two per cent a year and as more consumers begin plumping for home-grown produce, this could have a beneficial impact on sales.
“Food miles have already become an issue amongst the multiples with Marks & Spencer even labelling airfreighted food,” Schellingerhout says. “This will remain an issue and is a big plus for UK growers.”
However, the sector recognises there is no room for complacency. Growers must be adaptable and be prepared to grow what customers want. Some have realised the potential of niche products such as mini-snack cucumbers and sources say this diversification is important for the sector to thrive.
“Our customers are continually looking for something new or different, and if we don’t grow it for them, they will go elsewhere,” Schellingerhout warns.
Other sources argue a number of factors need to considered. “There is little opportunity for consumer trade-up in cucumbers with little innovation within the category,” says one UK-based producer. “We may see more mini or midi cucumbers but the price is relatively high compared to standard.”
“Demand is always geared to supply with cucumbers,” Cornwell says. “It is not like tomatoes with its variation of types and versatility: a cucumber is a cucumber, but year-on-year sales are stronger through healthy eating.”
While the growth of niche cucumbers remains open to debate, sources agree that cucumbers are competing with many other ingredients within the salad and fresh produce sector and many feel promotions are needed to boost consumption levels.
“We are moving away from the traditional salad consisting of lettuce, cucumber and tomato and increasingly consumers are adding more exotic ingredients such as avocado, herbs, fruit and nuts,” says a producer. “Perhaps educating consumers about the health properties of cucumbers could further boost consumption.”
Cornwell says the taste of cucumbers has improved year on year through good growing practises. “It is important we target children and younger people to advertise the benefits of cucumbers and healthy eating,” he says. “Cucumber growing is all about good varieties (that produce middle-range sizes), good housekeeping and technical skills, strong yields and higher percentages of top-quality fruit which make our customers more enthusiastic.”
Some varieties such as Aviance deliver a strong product says BFPG’s group technical manager Cameron Langford, while the Eminentia variety is more resistant to mildew.
The price cucumbers achieve at retail level has been a cause of concern in previous years and growers will be watching the multiples carefully this season. However, one source says that last year the market experienced a 30 per cent year on year value growth, brought about by an increase in average prices as promotional activity on whole cucumbers meant that consumers switched from portions and opted for whole cues.
“Regular promotional activity from the multiple retailers should help to drive up consumption,” says an insider.
Meanwhile, retaining staff is always an issue in the fresh produce sector and producers acknowledge sourcing labour remains a challenge. “There’s a need to find workers who know what they’re doing and also who will stay,” Hibberd explains. “It’s a fluid situation, some workers only want to stick around for one to two years and not many people want to work in greenhouses.”
Nevertheless, producers are looking ahead to the opportunities. “Basically, we could do with a really good season,” Hibberd says. “There has been a lot of nervousness over gas prices but if we can restore confidence, then growers can think of making investments.”
One firm already doing that is Glen Avon Growers which is looking to expand its operations over the next three years. The producer is currently running a two-year HDC-funded project looking at the viability of growing a ‘high wire’ cucumber crop without lights.
“This method of growing does have some real benefits over a conventionally grown crop, but is more labour intensive, so the project will hopefully show if the pluses outweigh the minuses,” Schellingerhout says.
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