Home-grown sweetcorn is set to come on stream in volume in the next few weeks, to meet the soaring demand that really took off once the sun started to shine and the UK saw its first proper run of summer days.
This year, UK growers intend to pick up the baton from European suppliers and fill gaps in supply. The domestic season traditionally runs from mid-July to mid-October, starting on the temperate South Coast and then snaking its way to Essex, before crossing over to Gloucestershire and Herefordshire.
The sunshine-coloured cobs are traditionally associated with summer and outdoor eating, and this is reinforced by the correlation between the sales increases for sweetcorn and beer, as consumers make the most of sunny days. Sales traditionally reach their peak window in the run-up to the August bank holiday weekend.
The market is difficult to predict because sales are so dependent on the weather and can change notably on a week-to-week basis but, now that the sun is shining, demand is outstripping supply. Prices have so far remained stable, at 24p a cob.
The sector is hoping that this will mark a welcome turnaround on the last few seasons, when bad weather held back both production and demand. At the time, prices fell to 13-14p a cob, to just about cover the 12p-a-cob production costs - though, on the up side, this encouraged a whole new set of consumers to try the product, and it is hoped they will buy into the category again this year.
Barfoots of Botley was the first to market with home-grown sweetcorn this year, when the harvest on its 3,000 acres of production began two weeks ago. Graham Young, managing director of the Chichester-based sweetcorn giant, is expecting to produce some 7,500 tonnes of de-husked cobs this season. “Production is in line with a normal year, though it can be a week earlier than this,” he says. “Yields will undoubtedly be higher than last year, when we had poor weather right across the UK. We have been delighted with what we have seen so far.
“But we have had some strange weather and the sweetcorn that should be ready in early October may have been affected by heavy rain in May,” he adds.
The market has been tight this year ahead of UK supply, with shortages following bad weather in the main producing areas in France exacerbated by the Spanish haulier strikes in June. This followed weather-related problems at UK ports in the spring, when US containers could not dock and product went to waste. At the same time, the strength of the euro against the pound sterling has pushed up the price of imports.
Sweetcorn can be imported from more than 15 different countries to secure consistent, 12-month supply, but the majority of sales in a year are made up of home-grown product. However, the UK industry will have to overcome a string of challenges in order to secure its long-term future.
Peter Davies, managing director of importer-exporter Davis (Louth) Ltd, is concerned that the multiples are using prices as a “battering ram” against each other and that, with consumers tightening their purse strings, this summer could see more aggressive price-cutting on sweetcorn. “There are big contracts in place with the supermarkets, and demand has overtaken the volumes available, but there are still promotions going on because of the credit crunch,” he says. “One store has twin-packs on a two for 80p offer, so there is a bit of a battle going on with that.
“But, overall, demand for sweetcorn has been good and we have even had to refuse orders.”
A number of growers have started to consider their options for next season and whether it is worth continuing to produce sweetcorn, with many having to make a decision in the next four weeks so that they can start planning for next year. The increase in production costs, including fuel, fertiliser and labour expenses, have squeezed margins that have already been pulled tight.
“A lot of UK growers just won’t grow sweetcorn anymore,” Davies says. “Many are moving out of fresh produce and, in some cases, hundreds of acres are disappearing overnight, along with a lot of growers.
“There is no doubt that, overall, UK volumes are decreasing, even if some growers have actually increased production.
“Right now, it is a question of getting your head down and getting cracking.”
John Smith, managing director at Greyfriars Group, says growers will have to rely on planned rather than speculative production. “Margins are going to be seriously squeezed and growers will take this into consideration when they are planning for next year - which could result in a threat to availability,” he says. “Some have already packed it in this year on the basis of last year, and this year has been worse.
“Our availability for the season ahead is assured because we have agreements in place from last year, but there will be less speculative crop floating about on the market.”
The range of challenges facing the fresh produce trade as a whole is a major concern for the sweetcorn sector, especially for the years to come. The most progressive companies will be well placed to weather this period, while others are less likely to pull through the tough times.
“What lies ahead are further rises in the costs of fuel, fertiliser and labour,” Young says. “We are counteracting this with economies of scale and investment in robots, which we have done over the last three years. We aim to expand volume and increase efficiencies and, generally, the more we sell the happier we are.
“Some want to sell a small amount at high prices, but we want to be competitive and expand the market.”
The sector is striving to boost penetration and build on the 32 per cent (for the pre-pack market, according to TNS) that has been achieved in the last 12 months, by focusing on the quality of the product and its convenience. The category has already grown significantly in the next 30 years and, with continued effort, it is expected to build further.
UK consumption of sweetcorn is relatively high compared to the rest of Europe, including France and Germany, but there is still a long way to go if it is ever going to reach US proportions. The four basic formats - twin packs, cobettes, four-packs and loose - are already accessible to a wide range of consumers.
“We are optimistic that it is going to be a rip-roaring British season and, barring an act of God, we are ready to satisfy consumers,” Smith says. “But UK consumption is about a tenth of that in the US, so the headroom for growth is considerable. We have to make sure shoppers buy sweetcorn again and again, and tell their friends.”
The biggest opportunity for the sector will be to increase penetration and encourage repeat sales, Young says. “But we can only do this if we give consumers the best,” he insists.
The sector has attempted to make the most of local sourcing initiatives, but with only three main producing areas in the UK, this avenue is more limited than it is in other categories. But product is sold in a local format in the major multiples, where possible. To further promote home-grown sweetcorn, Barfoots of Botley will hold its annual Cornfest, on Sefter Farm, in Pagham, West Sussex, on September 6, to raise awareness and support local charities.
In the longer term, the right varieties will be key to the future growth of the category. Barfoots of Botley has more than 300 varieties under trial, in its mission to find the ones best suited to UK production. “We have about a dozen that we have had on the go for three years and we have strong hopes for six of them,” Young explains. “It is third-generation sweetcorn, with a thinner skin on the pips and sweeter - a step up from supersweet, as the second generation of varieties.”
The sector will continue to build on the promising growth in the category. How the season will pan out remains to be seen, but it is clear that forward-thinking firms working to make their businesses sustainable will have a lot to look forward to.
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