The produce industry has been issued an ultimatum if it is to ensure the prosperity of its future and encourage youth into the industry.
John Giles, divisional director of farm and agri-food business consultancy Promar, told delegates at last week’s Re:fresh Conference that the sector faced two paths - one that would lead to “gradual decline” and another that could ensure the industry’s security.
Giles predicted UK horticulture would see a downward spiral with increased input costs and margin pressure, and growers forced out if the sector remains on the defensive.
He urged delegates to be proactive in helping industry stakeholders work together and increase innovation.
“The way I see it, the industry is split between 50 per cent traditionalists, 40 per cent realists and 10 per cent pioneers,” he said. “In the next 10 years, it will be very difficult for these traditionalists and in 25 years, the pioneers will be those who truly understand agronomy.
“I think there will be more competition from producing companies in the future. I’m all for UK horticulture, but why should we stop people who think exporting to the UK is a great idea?”
In a wide-ranging speech, the consultant said horticulture may need to fund itself to achieve this innovation through research and development, with funding from DEFRA waning.
“With funding [from the government] falling, it increasingly needs to be provided by companies,” said Giles. “If we can get some consolidation in the supply chain then we can prevent wasting money - a lot of research and development budgets are wasted on not particularly relevant market material or studies available elsewhere in the world.”
Giles also warned against being tempted into exporting due to the current problems with sterling. “Focusing on the export market on the basis of the exchange rate is dangerous, especially if you don’t do your homework,” he said. “It is not something you can do without care and you have to be able to be flexible to deal with the volatility of it.”
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