Almost two-thirds of respondents to last week’s freshinfo poll believe that the price structure in the UK fresh produce market is alienating growers and exporters targeting this market.

Sixty-fiver per cent of respondents said that the price structure is having a detrimental effect, while just 18 per cent think it is not.

Brian McGillivray, an industry consultant said: “Western Europe was a safe haven for world-wide fresh produce supply due to its financial stability. You may not have achieved the best returns from supplying western Europe, but at least your payment was more or less guaranteed. But what is now evident is the strength of the emerging markets in central and eastern Europe plus the powerhouse economies of China and India…in countries in which individual wealth is increasing, a percentage of that population with residual finances looks for more imported products partly on status as a point of differentiation. There does have to be recognition that we are now truly in a global economy and if you fail to recognise that you will ultimately become the loser.”

Another poll respondent commented: “Growers all over have enough trouble earning a living, they won’t under sell a product just because it is the UK.”

At Asda, a spokesman told freshinfo the retailer is in a good position to be able to handle rising prices. “Asda is well placed to absorb much of these price increases thanks to our value focus and efficiency of the business to minimise price increases to our customers,” said the retailer’s spokesman.

“It is important that retailers offer incentives to our customers to eat healthily and price on fresh produce is a key component of doing that. We have strong relationships with our suppliers and together we look at long-term view to ensure we pay prices that are right for our suppliers and our customers.”

Topics