Key members of the UK apple industry have conceded that there will be retail price inflation this year after poor weather disrupted last year’s crop.
Last week, Mark Price, managing director of Waitrose, warned that price inflation of fruit and vegetables would rise further this year, with apples being notably affected.
Price commented: “We’re seeing input food inflation of around three to 3.5 per cent, but we expect it go up to as much as five per cent and in some commodities, such as fresh produce, the increases will be massive. The apple crop was down 20 to 30 per cent, so apple prices have to go up. You have only seen the tip of the iceberg.”
Agreeing with Price’s assessment, Adrian Barlow, chief executive of English Apples & Pears, said that there will be a 12.5 per cent rise in retail apple prices this year.
“I expect prices to rise up to £1.99 per kilo on average this year but it is still difficult to predict as I saw one major retailer recently selling loose Red Delicious at £3.50 per kilo, which is double the price a year ago,” said Barlow.
Worldwide Fruit’s Steve Maxwell also expects a price rise but doesn’t expect inflation to be considerable. He explained: “I can see the base level price rising and there being less promotions, but inflation will be in line with other crops. UK apple growers must now ensure they utilise what’s left efficiently and maintain good communications with retailers.”
However, Barlow says price inflation is necessary to help growers make a profit, with prices on fuel and labour hitting record highs in recent months.
He concluded: “I want to see a consistent price in place until September as growers are struggling and need to return to making a profit.
“Obviously we don’t want to see the level of consumption affected by retail inflation, but I think if we see stable prices from now until the start of the next EU season that will be maintainable.”