When you’ve done this job for a while, the broken record effect is bound to come across every now and again. And almost inevitably, it is brought on by events that defy any type of logic, even commercial.

Everyone involved in this trade knows that the returns being received throughout the fresh produce supply chain are only sustainable for a lucky few; that the majority of the industry sits on knife-edge margins praying continuously that the sun will continue to shine on them tomorrow - or after the next tender.

Even the supermarkets know that. Yet it would appear that, as they have driven the value out of staple products like milk, bread and bananas over the years, they have lost sight of the intrinsic value of the demand and supply equation. The value, that is, to everyone involved in the chain, and not just them.

As the rest of the world becomes more competitive in the fight to source high-quality products, how many growers will continue to see the UK as a worthwhile target market? As the weather and supply patterns become more volatile, so too will the minds of growers desperate to stay above water.

Fixed price ‘contracts’ are no compensation for growers eyeing a sky-high spot market, particularly when constant price-based tendering removes the one advantage these deals once purported to give - long-term grower stability.

tommy@fpj.co.uk

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