Increasing energy costs and reducing return prices are highest on the list of concerns for English cucumber growers as the conventional cucumber season begins.
“The English cucumber industry is now facing its biggest challenge in 40 years,” says Hedon Salads managing director Tom Salmon. “Prices last year were very low and profitability was difficult for a number of companies. This season opens with the price of fuel showing a 35 per cent increase. If cucumber prices do not rise then there could be serious consequences for the whole industry.”
Derek Hargreaves, technical officer for the Cucumber Growers’ Association (CGA) agrees that the growing disparity between costs and profits is cause for concern. “If you look at the figures there has been a dramatic increase in gas prices over the last two to three years,” he says. “In 2003 energy costs were cheaper and we had good returns. Then in 2004 energy costs increased and prices fell and for 2005 energy costs have gone even higher and return prices are expected to keep falling.”
Luke Hibberd, marketing manager for Abbey View Produce Ltd, says the current price war among supermarkets is taking its toll. In 1991 Abbey View was paid £10.57 for 30 cucumbers, while in 2004 the price was £9.63 for the same number. “Considering the retail price index has risen from 133.5 to 186.7 in the same time, the £10.57 should have risen to £14.79,” says Hibberd. “This gives us a real term decrease in payment of 35 per cent. While we are getting paid less our costs are increasing, not only for labour, but growing costs as well.”
Hargreaves agrees such pressures mean there is absolutely no room for unnecessary expenditure. “It is the kiss of death for anybody who is not 100 per cent efficient. If anybody is paying over the odds for water, or anything, that is going to drive another nail in the coffin,” he adds.
Salmon says growers are always looking to reduce costs and increase production. However, without implementing exceptional changes to production techniques, it is unlikely that many ordinary growers will be able to achieve volumes higher than 65kg per m2.
As part of the British Fresh Growers Group, ScSmb Produce now markets for 22 growers who are all assured produce members. Steve Cornwell, sales and procurement director for ScSmb, is expecting to produce 70,000 to 80,000 trays per week - an increase of 30 per cent on last year, following expansion of the group. Despite driving to reduce costs, Cornwell says ScSmb is looking to develop new glass and will be continuing trials of production under lights during autumn and winter, to achieve year-round product and keep on top of industry-wide advancements.
Hibberd says the industry as a whole needs to look at making lighting cost-effective in order to allow for year-round production. Being heavily involved with the CGA, he says Abbey View will profit from an insight into its lighting trials and the company plans to commit to the project once it is satisfied the technology is up to scratch.
Hedon Salads achieved 365-day production for the first time last year, which meant English cucumbers were on the shelves throughout the Christmas period. With volumes of cucumbers reaching 120,000 m2 under glasshouse production, Hedon is the country’s largest producer, and for the last couple of years it has been employing lighting techniques to achieve higher yields and bridge the gaps in the UK supply calendar. “In 2003 we invested £3.5 million in putting 80,000 m2 under lights and lifting those greenhouses to allow for high wire production,” says Salmon. “Last year was a testing time with many new issues to confront. When changing to growing all year round under lights the whole culture of production changes and new problems surface. In this second winter we have found our feet and are starting to find the correct way ahead, but it is difficult, it is expensive and is not for the faint hearted.”
Over the coming year Hedon Salads will be aiming to achieve trial levels of more than 300 cucumbers per m2 at the Stockbridge Technology Centre, but Salmon says the company is still some way off realising this goal. The focus for Stockbridge growers will now be revising the economics of the project, says Hargreaves. “This year we are trying to look at different options to squeeze more out with lower energy costs.”
Performance levels for last year did not quite meet expectations but Hargreaves is still optimistic. “The crop is performing very well but not as well as I had expected for the winter period. But at the end of the year it will still have produced more than last year,” he insists.
English growers are continually threatened with competitive prices from growers in Spain and the Canary Islands. However, Spanish growers have major challenges to contend with as well, such as the uncertain climate, rising labour costs, availability of water, pressure from tourism and increasing costs of land, says Salmon.
While Sainsbury’s imports cucumbers in the winter, for eight months its supply is sourced from the main UK areas, Yorkshire and the Lea Valley, and salad buyer Stephen Hedderley says all of his UK suppliers are conducting trials to extend the current supply. “We source from Spain and the Canaries through the winter,” says Hedderley. “This decision is based purely on the best quality cucumbers available to our customers at that particular time of the season. However, we see the UK as the only source of whole, portion and large cucumbers for the rest of the year despite the increasing amount of Dutch and Spanish available in some supermarkets.”
Hedderley claims that in October, November and December the temperatures, light levels and yields in Spain make a more sustainable option than growing in the UK, with the extra heating and fuel costs. But, lower temperatures after Christmas can put pressure on Spanish plants, so this would be a good time to look at UK light production to bring the UK season forward, he suggests.
In the last two weeks the temperatures in southern Spain have dropped dramatically, destroying crops, which have been exposed to severe cold for too long. UK growers are set to profit from the high prices being issued owing to the deficit of imports.
Cornwell says the future of the UK’s production methods could, rather unsettlingly, depend on speculation over Spanish temperatures. “Maybe with the adverse weather conditions we are now seeing in southern Europe, investments [in lit-crop production] could become viable if price averages stay up. The problem is if Spain has good winter weather then it is difficult to compete, but this is all gambling on future weather conditions.”
In terms of resistance English cucumbers are in a stronger position than Spanish crops, which justifies the expense of striving for year-round production, according to Hargreaves. Owing to better climate control, English growers are able to produce crops with very little chemical treatment. “They are not pesticide-free but the pest and disease pressure is lower and they are not sprayed for mildew or various other pests.”
Another consideration in favour of home-grown product is the dramatic decrease in food miles. Both Salmon and Hargreaves claim that contrary to popular opinion, the latest UK growing methods are a favourable option when it comes to environmental concern. Salmon says: “If we can produce at the right price year-round then, given the fact that we generate our own electricity from gas, and that we absorb all the carbon dioxide from this process, then there could not be a greener, kinder method of production. It has to be remembered that all produce from imported countries has to be transported here. I have not done any calculations but it would be interesting to see what environmental impact this has in consideration to the modern methods of production the UK can offer.”
A further point in favour of local produce is the lower yield control seen in Spain. “The lower yield is due to 95 per cent of Spanish growers still using plastic “glasshouses” with little or no heating,” says Hibberd. “This means that certain varieties may produce less, depending on the weather, whereas an English crop in a modern glasshouse is controlled and stable throughout its life.”
In addition, using lighting for year-round production actually requires a lower energy input overall than growing the conventional crop, Hargreaves says. This is due to a higher than normal production of cucumbers over the summer months which balances out with the winter months, and less heat energy is put in due to the heat converted from the extra lighting.
While for conventional crops the whole of the lamp is normally at the top of the crop, with the lit-crop, the high bulb is split from the control gear, which is placed low down in the crop, resulting in a better distribution of heat, he explains. “It is a different process for growing the lit-crop cucumbers. They are grown a bit longer, with a high wire, which is more labour intensive but the quality is considerably improved.
“The bulk of these cucumbers are supermarket quality all the time,” he adds. “They are not buried in the crop but layered like tomatoes on the vine. They are picked about three metres down from the top, so they are always well-presented and not growing through the foliage. This makes harvesting easier, although more labour is needed in handling the crop.”
Despite widespread interest, Hedon Salads is the only company to have achieved year-round product, heavily funded by the Horticultural Development Council (HDC). With the phenomenal set-up costs, the huge cables and major loading needed on lamps, only growers with combined heat and power systems and, particularly, the capacity to generate their own heat, would be able to consider the project, Hargreaves says.
Andrew Haycock, technical director of Stubbins Marketing Ltd, agrees that production and profitability without the use of CHP (Combined Heat and Power) and associated energy saving and efficiency systems will become increasingly difficult. After a steady increase in yield over the past 15 years, with the introduction of new varieties, yields have begun to plateau and Haycock suggests supplementary lighting may be the best way to prompt further significant increases in yield.
While English Village Salads (EVS) has started to produce cucumbers under lights, the company is not looking to move to year-round production, according to cucumber product manager, Roger Shicluna. He says he has not been particularly impressed by available results and believes other growers share his sentiment. “The trials of others on lit crops are not convincing. The cucumbers are a bit thin and pale. It depends on light levels but it’s not conclusive and I really don’t think other growers are convinced either.”
Instead, the company will focus on trying to even out the peaks and troughs of production during the three annual harvests, he said. “Over this year we will be looking to extend the season, trying to stagger production and possibly produce earlier, bringing it forward a week, to see improvements in quality.”
Last year was fairly average for most growers, Hargreaves says but he is reserving judgement for the coming season. “What happened this year is that one or two growers planted later to try and avoid the high energy prices. We won’t know until the end of the year how that will turn out so it will be an interesting season.”
Hedderley agrees that growers have been cautious following a difficult season last summer, with poor weather damaging retails and returns and impacting on growing yields. However, he is hopeful that, owing to good light levels in December and a good start to planting, 2005 will prove more profitable, with Sainsbury’s volume continuing to rise.
Hibberd is already experiencing a positive start to the year, with one of Abbey View’s growers, Nick Giardina at Ashfield Nursey, having produced the first Lea Valley cucumbers of the season, for sale at Sainsbury’s last weekend.
He says many growers have made improvements over the winter, investing in carbon dioxide supply systems and the installation of thermal screens in the hope of increasing yields and reducing costs.
While the cucumber sector recognises the significant move by the produce industry towards convenient prepared produce, adapting cucumbers to this specification is difficult given the speed with which they dry out after cutting. According to Hargreaves there have been attempts within the industry to produce a higher dry matter cucumber but so far these have not been greatly successful.
Shicluna is equally quick to highlight the crop’s limitations: “There are some high dry matter types being grown in Spain before Christmas but to get that production all year-round is expensive. They do have a fuller flavour but they have a lower yield and it is difficult to get the specification length and weight for supermarkets, and I don’t think they are mildew tolerant.” Despite having taste in its favour, the dryer cucumber is not considered viable enough to command the extra expense, particularly from processors, he says.
Hargreaves is encouraged that the industry as a whole is experimenting with ways to raise the profile of cucumbers. He compares the state of cucumber production to that of tomatoes a couple of decades ago. “Twenty years ago, in the supermarkets there was one round tomato, about 2.5 inches in diameter. Now the market has expanded and there are dozens of varieties. With cucumbers you have whole ones and half portions and that is about it.”
The 5 A DAY scheme has attracted attention towards the fresh produce industry and cucumber growers are enthusiastic to make their product a strong part of people’s daily quota. “What we need is more shopping opportunities for cucumbers. We need to do other things with them,” says Hargreaves.
Hedderley is equally enthusiastic about sales and the possibility of expansion. “We have seen fantastic success in both our midi and large cucumbers. We now sell up to 90,000 midi cucumbers and 50,000 large cues per week. And we have some further exciting options for the cucumber category for later this year which I am sure will be equally successful. The latest innovation sparking interest is the ready-to-eat mini cucumber. Originally trialled by Stubbins Marketing through Somerfield last year, the one-bite snack was launched last month by Watton Produce Company in association with Stubbins, under the Shapers brand at Boots stores.
“If the super-mini cucumber takes off I am sure other people will follow down that road,” says Hargreaves. “It is a small outlet at the moment. Until the market is developed there is no way to mass produce them but until you are producing them you can’t develop the market. It’s the old chicken and egg situation.”
Hibberd acknowledges the constant demand for a high quality product with an extended shelf-life at reduced prices. “The only way the industry can cope with consumer demands is to keep pushing technology forward and keep re-investing to increase yields,” he says.
Hedderley shares this outlook and insists Sainsbury’s has found an ideal approach to sourcing its cucumbers. “We have spent the last year reviewing our supply base and feel we have the best in the industry, both in the UK and Spain,” he says. “These growers/ suppliers have been rewarded by long-term contracts, increased volume and sustainable returns, which will enable profitability and the ability to re-invest in these businesses whether that may be better glass, new greenhouse structures or lighting.”
Despite competition from abroad, Hargreaves suggests English cucumber growers will maintain their resilience, at least in the short term. In any case, it would be very challenging for them to adapt to growing alternative crops he says. “A lot of the greenhouse stock used is quite low. If you want to grow tomatoes or aubergines, for example, you need high greenhouses. There aren’t many other options - I suppose strawberries might be possible.”
Salmon believes prospects for people in the cucumber sector are comparable with most others in the fresh produce industry. “We think that all sectors of farming and food production face considerable pressure from supermarket competition and deflation in the value of food,” he surmises. “If we do not adapt soon or if prices continue on the steep decline then the production of all fresh food in the UK will be difficult. We continue in the hope that the changes we have made will help sustain our business.”
SHINING LIGHT FOR CUES
As one of the largest seed companies in Finland where lit crops are commonplace, De Ruiter Seeds has been working closely with growers there to develop varieties which will provide the best possible results under artificially lit growing conditions. “We are now transferring these experiences and the knowledge gained to the UK,” says De Ruiter Seeds account manager, Sarah MacGregor. “This involves working closely with UK growers for optimum results in this fast expanding area of cucumber production. Our variety, Rapides, has already proved to be successful in this area.”
De Ruiter has also launched Olivia, a variety with an open plant habit. “The openness allows for greater air circulation which can help reduce the plants susceptibility to disease. This coupled with an intermediate tolerance to Powdery Mildew will reduce the amount of spraying and chemicals required and makes for easy management of the crop,” says MacGregor. Since labour is one of the major costs any reduction is significant to the grower, she adds.
The increased light able to penetrate the crop creates dark green, high quality fruits. And when it comes to yield, Olivia produces at least the same yield as the standard variety with all of the added benefits above, says MacGregor.
While smaller cues could be a possible area of segmentation and development in the market with high labour costs and potentially lower yields, their commercial viability is questionable in the long run for UK growers, she says.
The foodservice sector has needs that can be quite different to that for supermarket produce so De Ruiter has explored developing varieties to suit such as long cucumbers with no neck and those with a high percentage of dry matter in the flesh.
De Ruiter is currently looking to develop Powdery Mildew Tolerant varieties which show a consistent and uniform size and high quality throughout the duration of the crop. “There is in addition a commitment to developments specific to lit crops,” says MacGregor. “There is still a debate about the viability of lit crops, but with the right set up it looks as though it can be financially viable and with an increasing focus on food miles maybe the demand for home grown products will increase. Year round production is here to stay and we must focus on getting the best from these crops.”
IPM SOLUTION TO VIRUS THREAT
Since the mid 1990s several nurseries in the Lea Valley have been championing biological control strategies and showing what can be achieved with Integrated Pest Management (IPM). “The commitment of nurseries to supplying first class cucumbers has been a major driving force in their desire to implement biological control strategies,” says Mark Jones of Biological Crop Protection (BCP). “While helping to minimise pesticides usage, it is resulting in improved glasshouse whitefly control which could play a role in controlling beet pseudo yellows virus (BPYV).”
Cultural, physical and biological controls all play a part in IPM strategies with grower’s only resorting to chemicals when absolutely necessary.
With approximately 85 hectares of glasshouses in the Lea Valley, sudden whitefly invasions are not uncommon, particularly when crops are being removed from neighbouring nurseries,” says Jones.
At the start of the crop BCP recommends making weekly introductions of the whitefly parasite, Encarsia, at a rate of one per m2. “It’s vital to get the introduction rates right,” says Jones. “Whitefly tend to lay more eggs per generation on cucumbers than on tomato crops. Careful monitoring is key - if the pest is allowed to get away, it can be extremely difficult for the Encarsia to catch up.”
Jones says some Lea Valley growers are only using IPM programmes for whitefly control during the first crop but constant use is necessary. CGA chairman Derek Hargreaves agrees. “BPYV is the only virus carried by glasshouse whitefly,” he says. “By starting Encarsia introductions early, good control can be achieved and the virus eliminated.” This was seen by a number of Lea Valley growers last year.
BPYV had not been a major problem since the mid 1980s, but it has now resurged and is causing concern in the Lea Valley. While some growers are controlling whitefly well using IPM, according to Hargreaves there are others who are spoiling it by remaining reliant on chemical control programmes, which are not proving effective.
Used correctly, a biological approach to whitefly control will give the best results and is more cost-effective than a chemical pesticide programme, he says. “If all growers controlled their whitefly adequately, the virus wouldn’t be a problem - however to be successful it will require a concerted effort by all growers.”
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