British tomato growers are in an optimistic frame of mind following this season’s strong sales, coupled with good, and of equal importance, consistent pricing.
“It has been a good season overall and better than we might have expected,” says Gerry Hayman, chairman of the British Tomato Growers Association (TGA). “Satisfaction has varied a bit depending on the customer and how much they have capitalised on the demand for British product - fresh and local is increasingly on the agenda.”
Paul Faulkner, marketing director of Sainsbury’s supplier Freshlink Marketing, agrees it has been a sterling season. “There has been a definite increase in demand from all retailers this year,” he adds.
As usual, weather conditions had a large role to play during the campaign, not just in terms of growing conditions but also in boosting sales.
While some growers claimed a first by producing UK cherry tomatoes as early as January, others had a slower start to the deal as dull, cold weather in early spring delayed production. “Harvests did not generally start earlier because of factors such as working to reduce energy inputs because of the cost,” Hayman says.
When questioned about early harvesting, Faulkner says: “Growers always look at the potential cost benefits of growing early versus the prices they can achieve. Different growers inevitably have different strategies and their own circumstances, but demand has definitely been there for the so-called traditional, seasonal growers to extend their season.”
Tomato volumes bulked up in late spring and a good balance was achieved, say observers. “Yields have generally been down a little on 2005 but there has been a good balance between supply and demand and little, if any, need to store product, so there’s been very good quality and very little waste,” Hayman adds.
The season went from strength to strength as the balmy summer months stimulated consumption. Indeed, both Hayman and Faulkner say that the hot summer weather led to good demand without resulting in gluts.
“The weather in July was extremely good for sales,” adds Kevin Hervé, director of Harmony Produce, a Jersey-based producer. “However, if the hot weather had continued through August the weather would have damaged the crop. So having a respite from hot weather in August was a good thing.”
Furthermore, competition from Spain was lower during the UK summer as a lot of Spanish growers took a break to assist with planning for their winter programme, Faulkner says. However, other suppliers were keen to make their presence felt. “We’ve seen an increase in volumes from Poland and there is always going to be competition, there’s no doubt about that,” Faulkner claims.
“The competition is very strong,” Hervé agrees. “There are huge volumes coming from the Continent which are affecting prices on all lines. We have to hope that a significant number of customers appreciate buying British.”
Judging by this season, it appears that they do. According to Faulkner, “there has been more demand for British tomatoes than we’ve seen for years and years.”
Hayman claims the British tomato industry has probably gone further than any other in producing alternative, premium fruit varieties. “A lot of our PR has been around this area, in publicising the types available, their qualities and their uses through recipe development and promotion,” he adds.
However, Hayman believes that despite significant efforts, consumers are still confused about the range of varieties on offer. He believes there could be much more information and point-of-sale material in store to help retailers capitalise on the demand for these products.
“Consumers are looking for brands to be loyal to, but apart from generic British, they’re not finding them,” Hayman says. “For example, if you take baby plum, now a very important category for us, they may appear in store as Baby Plum, Santa, Santini, Dasher and Pomodorino among others.”
Harmony Produce is one tomato company which knows the importance of branding. It is known for its Jersey Jewel, a baby plum-on-the-vine variety, which is sold in the Tesco Finest range.
“Having a branded tomato variety on the shelves for 2006 has made a difference to our business,” says Hervé. “We have spent a lot of time and effort on the presentation and packing, as well as promoting Jersey Jewel in the media. In general, sales have been good for Jersey Jewel and the volumes were what we expected.”
Other varieties that have potential include the golden cherry tomato. Hayman says that this variety always does well in consumer taste tests at shows or in stores but doesn’t always sell as well as one might expect because of a lack of PoS promotion. “Maybe customers think it’s just under-ripe,” he says, suggesting retailers could benefit from having informed staff on hand to dispel such falsehoods.
It’s been a busy year for TGA which, having exhibited at the BBC Good Food Summer Festival during British Tomato Week in May, now hopes to end the season on a high with an appearance at the National Fruit Show (NFS) in October.
This will be the first time the TGA has participated at the NFS, where it will be holding the Tastiest Tomato Competition. “We are expecting a good response, both in terms of entries and support for the PR activities at Borough Market (where the winners will be showcased),” Hayman says. “We have sponsorship from Marks & Spencer and will also be presenting a trophy to the winner in memory of Kent tomato grower David Stapley, who was a great supporter of setting up the TGA.”
As the season draws to a close, one issue that has weighed on growers’ minds is the increase in energy prices. According to one grower, gas prices are double what they were two years ago and up 70 per cent on last year. “Much higher energy this year with a colder winter has given us a significant increase in our costs but energy prices are something we have to live with if we want to stay in the tomato industry,” says Hervé.
But, according to some observers, there is light at the end of the tunnel. “Energy costs have been very high but now show signs of easing with new gas supplies coming on stream,” Hayman says. “Growers have typically reduced their energy use by 15 per cent over the last year by investing in conservation strategies - a great achievement. We also have fantastic opportunities as an industry to capitalise on alternative energy sources in the future, from Combined Heat and Power (CHP) generation and other industrial processes.”
Although Faulkner acknowledges that energy prices are a concern and a big expenditure for growers, he predicts producers will wait until the end of this year to fully assess the situation. “Certainly, the tomato volumes being sold and prices achieved may mean that this will offset the higher prices,” he adds.
Challenges aside, British tomato growers have been praised for their willingness to take calculated risks and adapt to the ever-changing environment. Two of Freshlink Marketing’s shareholders, John Baarda and Eric Wall, have invested heavily in their operations and Faulkner says it is satisfying to see these investments paying off. “Sainsbury’s has also been incredibly supportive of these projects,” he adds.
Faulkner is cautiously optimistic about the future. He says: “The concern for growers is longevity of supply. Every year is not necessarily going to be a good year and over the last decade we’ve had some seasons that have been poor. However, the last few seasons have been positive and we need that to continue. I think a lot of growers, not just ours, see what investments they can make before they go forward.”
Like others in the industry, Faulkner believes there is a huge demand for British product and it is important growers capitalise on this support. “I really feel that opportunities couldn’t be greater for growers to make the most of what they do best which is to produce consistently high-quality tomatoes year in year out,” he says.
“Yes, there are issues - high fuel prices over the last 18 months is a challenge - but there always will be issues and challenges in every industry,” he says philosophically.
BCP WRESTLES WITH RUSSET MITE
In recent years, tomato russet mite has become increasingly widespread in UK nurseries, according to Biological Crop Protection (BCP). Preferring hot, dry conditions, this problematic pest is more commonly found inhabiting crops in southern Mediterranean countries, such as Spain and Morocco.
“There is a growing trend for UK growers to procure fruit from countries such as Spain to provide year-round supply to supermarkets,” says BCP’s Mark Jones. “It is perhaps inevitable that pests such as russet mite are transported with the crates and end up infecting nurseries over here. Once a russet mite infection occurs in a crop, it can prove difficult to eradicate from the site.”
The tiny russet mites are difficult to detect with the naked eye and so can often go unnoticed in the crop for many weeks. By then a sizeable population can build up causing significant crop damage and even plant death, warns Jones.
Typically, damage starts near the base of the plant and moves up to the stem. Affected leaves turn brown and distorted. As the infection multiplies, stems turn brown and in extreme cases, the mites move onto the trusses, which turns fruit brown, rendering it unmarketable.
According to Jones, some growers have resorted to spraying pesticides. But while effective, they can cause unwelcome disruption to crop management at crucial times, as well as going against the tide of reducing pesticide usage in the crop, he says.
In a bid to overcome these issues, BCP has developed an alternative IPM programme relying on sulphur and Eradicoat T. “Using this approach we’ve seen good control of tomato russet mite on several sites,” Jones says. “There is no interruption to harvesting or pollination.”
By tagging plants at the highest point of damage, the pest can be closely monitored to see if further applications are necessary. Regular monitoring on a weekly basis in areas of known infection is essential in controlling the pest, Jones says.
WIGHT SALADS SCREENS ENERGY OPTIONS
The main challenge facing UK tomato growers this season has been the dramatic rise in fuel prices, says Alan Parker, director of Wight Salads Group. In order to reduce their energy costs, many growers have run lower fuel inputs, sown later and installed either temporary, ‘fixed’ thermal screens or permanent automatic screens. While effective, many of these measures have had the effect of reducing or delaying yields.
Wight Salads has adopted a number of energy-busting initiatives including investing in thermal screens in some of its structures. The producer has also started to look at ‘Temperature Integration’, but Parker says, “we are treading very carefully in this direction.”
Wight Salads runs two CHP sites on more than 30 acres of glass on the Isle of Wight. “CHP has been a great frustration over the past five years where, due to government policy of freeing up the UK electricity market, the wholesale price of electricity dropped to such a level that it was uneconomic to generate using gas, the price of which has risen sharply,” Parker says.
“This is a massive problem for the UK industry when competing with the Dutch, as CHP is a very viable method of generating electricity in Holland, with the benefits flowing through to the growers.”
Competition in the market is extremely strong as the UK receives tomatoes from a wide range of sources throughout Europe and parts of Africa. However, Parker believes that the industry as a whole is its worst enemy, by continuing to oversupply, resulting in ever-decreasing prices.
To stay ahead of the competition, Parker says the challenge for British tomato growers is to produce the best possible flavoured fruit. He adds: “Being closer to our market than our competitors, we do not need to grow long shelf-life varieties that have no flavour and resemble cricket balls more than a fruit to be eaten and enjoyed.”
“We must begin to get the message across that we use fewer pesticides than most of the competition; a factor many people consider very important in their food. The British industry has been at the forefront in using natural parasites and predators to control pests in the crops, rather than using vast quantities of chemicals.”
Wight Salads Group began producing organic tomatoes in 2000 and is now one of Europe’s largest organic tomato glasshouse growers with 11 hectares in production. “We made a point of not just producing organic tomatoes, but tasty organic tomatoes,” Parker says. “All of our varieties go through a rigorous process of being sampled through an independent taste panel to verify their organoleptic properties before going into commercial production.
Similarly to other growers, Parker says the season started poorly with a delayed start to harvesting and lower early yields. This presented problems for suppliers in meeting customer demand.
“With regard to prices, some of our customers have been very supportive of the predicament we have found ourselves in, others less so,” he adds. “Overall, there has been a small increase in prices, but generally the move away from commodity fruit to ‘added value’ is the way most growers are meeting the cost increases.”
Prices remained reasonable throughout the autumn, with some lines in particularly short supply. Due to an abundant cherry tomato crop, however, Parker says ‘ridiculously low prices’ were achieved and less acreage has been planted for the late summer and autumn market.
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