The soft-fruit sector is reflecting on a “very, very tough” summer, now that supply and demand is evening out and the category has achieved a better balance than in the last three months.
The supply situation is expected to right itself if the weather improves, but the forecast for the rest of September - with a wash-out expected - suggests this is unlikely. How growers and suppliers work through the challenges ahead will determine the overall outcome of the season.
Home-grown strawberries have overcome a three-week glut to reach a more stable supply situation. A significant spike hit the market when the Scottish 60-day Elsanta production was delayed by up to two weeks and coincided with increased UK everbearer production. The oversupply flooded the market and a series of promotions - including two for £3 offers on 454g packs or £1.49 for the same weight - helped to shift the fruit. However, a number of suppliers have complained that the timing of the price cuts was slightly off, while others claim their returns were slashed to unsustainable levels.
“The promotions have definitely reduced returns for growers, and it was a significant drop for them,” says one supplier. “The retailers have taken prices back down to a level that you would not produce fruit for on a long-term basis.
“But we struggled to sell all the fruit and we had to divert some production to the wholesale markets.”
The wind and rain have also caused problems at production level, with growers struggling to harvest the fruit because some pickers have refused to go out in the wet fields. “It has been quite a big challenge for all growers and labour providers to keep workers focused on the fields because of the weather,” says an insider. “They see fruit picking as a summer holiday job and a lot of workers have not been geared up for the weather.
“There are polytunnels to protect them at least, but it has been a struggle to get the crop picked and we have had to pay overtime because other workers have left early.”
But in the run up to the August bank holiday and beyond, supply and demand have reached a balance, with volumes dropping, the weather picking up temporarily and sales up. “We are now reasonably in line,” says one supplier. “The everbearers are in good condition and we are expecting to see similar volumes to last year, though the market will remain quite flat.”
Both growers and suppliers are now gearing up for the end of the UK season, though a lull is anticipated, which is normal at this time of year. “We are concerned that consumers are getting fed up of soft fruit because it has not been much of a summer, so it has been difficult to pull them in,” says one supplier. “Having said that, the weather has also affected availability of other fresh produce lines so we are all in it together.”
Glasshouse production will provide home-grown strawberries until November, alongside imports.
UK raspberries, on the other hand, are still in short supply following a run of wet weather and cold temperatures in the last few weeks. Supplies are estimated to be down by around a third and wholesalers in particular have found it hard to get their hands on the volumes they need, though available fruit has been described as “bright and beautiful”. However, on the whole, sales volumes have been up by some 25 per cent across the category, though prices have remained in line with last year.
Primocane production increased in the last few weeks, so more volumes are expected to reach the market in September and October. “We are expecting better returns on raspberries in the next few weeks,” says an insider. “We are really hoping values will go up, but returns so far have been reasonably good.”
UK blueberry production has continued to expand and is proving itself to be popular on the market. Polish supply has been tight this season following frosts, so importers have been sourcing from the Netherlands ahead of the start of supply from Argentina next month.
The blackberry sub-category has continued to show more promising growth this quarter, supported by better-tasting varieties and improved availability.
Suppliers have been frustrated by two waves of aggressive and mistimed price promotions in the category. Insiders say supermarket price deals on strawberries in particular failed to benefit the crop as much as they could have. “If the deals were on at different times, they would have absorbed the surplus,” says one supplier. “We normally get a kick for two or three weeks after prices revert back to normal, but because volumes have now stabilised we have not fulfilled potential sales volumes.
“It has been a very, very tough summer and sales have not been as high as we would have liked.”
But suppliers are bracing themselves for a tricky September, when demand traditionally tails off as the season peters out, because there is still decent soft-fruit volume available. The market for strawberries is expected to remain relatively flat, while raspberries, blueberries and blackberries are expected to fare better.
REGAN REMAINS MELLOW
The doldrums of August were a difficult time for British soft-fruit growers, says Marion Regan, chairman of KG Growers. We made our way from field to field, to packhouse and back again, constantly checking our emails for alerts on labelling details or eagerly anticipated price changes; ears attuned to the shrill of our mobiles in case it meant an additional order. Because it seemed a long time since May - we were tired, our pickers were tired, some of our plants were tired and our loyal consumers (those who were not on holiday) were jaded by the appalling weather.
But September ushered in the “season of mellow fruitfulness” - it’s a great month for great-tasting berries or, arguably, even the best. Cooler nights, balmy days and humidity means bigger fruit, better picking speeds, firmer berries and higher brix levels.
The challenge is keeping enough pickers on the farm now that university terms start so early and six-month work permits start expiring. Inspiring buyers with our trustworthy, home-grown fruit is another challenge, as minds turn to other fruit and vegetables more reminiscent of autumn. But what could be more autumnal than berries? A fruitful September that draws new consumers to late-season strawberries, raspberries and blackberries would be very welcome.
It has been difficult for many this year. A late season, poor weather, the economic downturn and labour shortages have combined to dent grower confidence. We have had cost rises from all quarters - fuel, labour, fertilisers, land - stonking double-digit increases. Planning for 2009 will reflect this. To maintain the soft-fruit success story, in which for the past 10 years have seen continual growth ahead of the overall market for fruit, we need a few things.
First, from the government we need urgent action to address the labour shortage by keeping and expanding the Seasonal Agricultural Workers Scheme (SAWS). If the public want seasonal produce, there must be a seasonal workforce. And SAWS is such a sound scheme for the participants, which poses zero threat to the country’s immigration figures.
From our customers, we need commitment to maintain a healthy UK production base with prices that acknowledge growers’ increased costs and - this is essential - attractive wages to seasonal workers.
From our marketing company, Berry Gardens, we demand cost-effective marketing and trustworthy, transparent dealings. It must continue to grow great relationships with customers, maintained by high service levels. These relationships allow more informed planning by all in the chain.
To help deliver the plans, KG members have access to proprietary varieties, agronomic support, benchmarking of costs, discussion forums and to capital items funded through the EU Operational Programme. Driving up yields and driving down costs is essential to ensure the consumer receives value for money, while preserving growers’ margins.
Finally, from everyone involved in soft fruit, there must be no compromising on standards. Dumbing down will not delight the consumer; at best it will halt nascent market growth, at worst it will result in disastrous press stories and market decline. It is a short route to boring old commodity production. Committed, well-invested growers, differentiation, quality, provenance, taste - this is the way to ensure the hard-pressed consumer picks up the affordable and healthy treat of a punnet of berries. This is particularly important during this season of mellow fruitfulness, when growers in the UK can see the light at the end of their tunnels, but still have one last, bountiful spread of berries to bring to the market.
