A major new report into the produce trade commissioned by government has uncovered serious failings in the UK produce supply chain.
The report, commissioned by DEFRA and conducted by English Farming and Food Partnerships, canvassed opinions from across the supply chain from producer organisations and suppliers to retailers including Tesco and representatives from the EU.
The report said collaborative relationships and supply chain partnerships were the only way to arrest the decline in UK produce firms while mistrust among growers and low levels of investment have stifled growth.
In its recommendations to government and industry, the report said collaboration and the participation of grower groups were key, while government needed to incentives greater uptake of support for grower groups. It said supermarket pressure on margins was also a key problem.
Driving change in the Fresh Produce Sector also said opportunities for UK Producer Organisations (POs) had been missed through confusion over the Fruit and Vegetable Aid Scheme.
The long-running issue has seen POs fall foul of rulings prompting subsequent suspension and de-recognition in some cases and the report accuses some growers of trying “to find mechanisms to secure funding from the scheme when in fact their structure and operational practices do not fully meet the criteria of the scheme as originally envisaged”.
“There is a fundamental lack of trust” between many fresh produce business, according to the document, and price “remains an elephant in the room".
The report concluded: “The industry cannot change overnight, but setting out to develop closer, more collaborative supply chains will, we believe, start a process that over time can build the trust and commitment required to give the UK industry, and in particular the grower, the confidence to invest into the sector - turning the vicious circle of industry decline, into a virtuous circle of growth and profitability.”
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