Due to unseasonably low temperatures in Spain, the UK has been short of cucumbers for at least six weeks, with supermarket and wholesale prices at an all-time high. As the UK cucumber industry counts down the weeks towards the start of the season, it is praying for high light levels, as well as continued high prices, so that growers can recover from the low returns and high production cost of the last two seasons.
It is still early days for the UK cucumber season, with major plantings only happening a month ago. There has been a move to later planting from December to late January, which has reduced production costs but meant a later start for some growers. A small number of producers are waiting even longer and starting in February or even March, using much less heat as a consequence.
Brian Hibberd, managing director of grower and supplier Abbey View Produce, sources cucumbers from around 25 growers in the Lea Valley, producing on 72 acres. “Some of our growers were late planting because of the price of gas, as the early crop is very dependent on it for production,” he says. “In general, we will begin harvesting significant volumes in weeks 12-14, and received our first delivery of UK cucumbers on Monday [February 9].”
The UK cucumber season usually starts in mid-February and salad marketing group English Village Salads (EVS) was the first to get English cues onto the market last year.
“To the end of 2008, cucumber volume sales were up 1.5 per cent against the salad market, which was and still is flat,” says Kelly Colrein, marketing manager at EVS. “Much of this is due to deep-cut promotional activity during the UK season. Promotions such as the 50p price offer seen across most of the major retails did have a positive effect on growth, although the downside is that the level of sales dropped below the levels of the previous year [afterwards].”
One of the greatest factors in cucumber cultivation is light levels, but what with the cold weather and more snow this year than the UK has seen in over 20 years, the situation is not looking good.
According to UK cucumber growers’ association Growco, last year saw light levels at a 10-year low - 16 per cent down on the best year on record, in 2003. “We are all hoping this year will be more like 2003 than 2008,” says Derek Hargreaves, from the association. “Better light gives better growth and yield, but it also stimulates demand for salads; after all, barbecue weather means good demand for salads.”
The quality of the cucumber crop has been completely dependent on light levels over the last couple of weeks, as it is the only variable that cannot be controlled, and heat will be added to the greenhouses to ensure a better outcome. “For the early growers, the main cucumber stems are now out and the flowers have set,” says Hibberd. “If we get plenty of light, growers will allow more fruits on the stem and we will have a better, darker green colour of cucumber - which is what the UK market looks for.
“Size will also depend on the light, and we hope they will reach a decent length as consumers have been paying a high price for small cucumbers lately.
“If we have good light levels, yield will be slightly up and the quality will be much better. The eating quality looks like it is going to be good, but we are really hoping for a nice, dark green colour.”
But even if good light levels materialise, Hibberd warns that there will be a shortage of UK product because of late plantings. “There is not enough to go round before the UK season really starts and small quantities of UK product are now coming onto the market, but there will still be a shortage for a couple of weeks.”
There is less competition from Spain at present, because of both the weak sterling against the euro and poor Spanish growing conditions. “If there are not enough cucumbers around, the retail price should be high,” says Hibberd. “Unfortunately, supermarkets are trying to limit price increases for consumers. Every supplier to the supermarkets is still taking a hit on costs.”
But Hargreaves believes that supplies from the Netherlands will have an effect on the market, despite the situation with the exchange rate. “The competition from Dutch growers will be as intense as ever from May onwards, as they continue to overproduce during the summer months,” he says. “This will drop the price over there and, whatever the exchange rate, those cucumbers will end up over here because they will have nowhere else to go. Reductions in production during the summer in the UK to aim product at specific markets has done no good at all, because we are swamped with imports during the summer.”
However, if the high retail price does remain, Hibberd maintains that it may not necessarily be beneficial for the industry. “If high prices continue, there could be a lack of demand,” he explains. “The price of Spanish product has not gone up quite as high as it should have on the supply side. In an ideal world, UK product should gradually come on to the market to avoid a sudden drop in price. It is a supply and demand market. If the product is dear, we will be more able to sustain the price by gradually coming in with volume.
“Hopefully, the high prices now will help UK growers and then a lower price in spring will bring more customers. We are balancing at the top of a cliff top.”
Hargreaves also recognises the dilemma. “There is no point in speculating about more demand,” he says. “If you grow more fruit than is needed by the marketing organisations, the only effect is to reduce the price. It would actually be better to have less fruit available and then the price may rise, but there is little prospect of that happening and if you are breaking even (or worse) doing what you are doing, why aim to grow more and risk reducing your price per cucumber and the whole return?”
As with all fresh produce sectors across the UK, the cucumber industry has been hit hard by high energy and fertiliser costs, and low returns for product.
Last year was relatively poor for yield, while cucumber production costs excelled. “Fertiliser and energy prices have risen substantially, with no increase in return to pay for the extra costs,” explains Hargreaves. “The supermarkets are not interested in pushing more back to the growers, as this means less for them. They are all concentrating on low prices and good value - so not much chance for the grower. All this time, I thought good value meant buying something that is worth what it costs, not something that was cheap.
“Growers run on credit so the reduction in available finance will affect some, but most have a good working relationship with their bank managers, so I do not see major problems. However, there is little being spent above absolute essentials.
“The challenges this year are the volatile energy prices, high fertiliser prices, poor returns, overproduction from the Netherlands in the summer, pressure for lower prices and poor returns.”
Hibberd says that even though the price of gas has decreased this year, growers are still in a dire position. “The price of gas overall is slightly cheaper now than it was a year ago,” he admits. “But it is not that easy for growers who are in a contract with their gas suppliers. Some growers faced higher floating prices last year, with a 158 per cent increase to their bill. Overall, it is cheaper, but it is still much dearer than it was five years ago. Gas is a large percentage of the total nursery cost.”
Despite the minefield of challenges facing UK cucumber growers, the industry does have some light at the end of the tunnel and hopes that, after two consecutive summers of bad weather, it will see sunny days and high demand for salad products this year.
“The law of averages dictates that we should have a good spell of weather this summer and demand for cucumbers will increase,” says Hibberd. “Hopefully, it is going to be a good year in which growers should get back the money they have spent over the last couple of years, and will be compensated for these hard times. I think we are about to get back on track.”
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