British Berry Growers report calls on government and retailers to step up

British Berry Growers (BBG) has launched a new independent report outlining the key challenges faced by the sector and making the case for future investment in the industry so it can realise its full potential.

The report is entitled The British berry industry in focus and was conducted by renowned consultancy Ernst & Young (EY). It is the most comprehensive analysis ever conducted by the British soft fruit industry and was commissioned to provide policymakers, retailers and regulators with the facts about the berry industry’s contribution to UK plc.

With 50 per cent industry participation, the study includes detailed data from a range of berry businesses, several of which also undertook in-depth stakeholder interviews about the challenges and opportunities they face.

Financial uncertainty

Speaking at the report’s launch at the House of Lords, BBG chairman Nick Marston said politics, economics, technology, planning, consumer demand and sustainability are all impacting growers and threatening the industry at large.

To an audience of Lords, ministers, MPs, retailers and growers, he stressed the berry industry’s important contribution to the nation’s food security but lamented low grower confidence to invest in and expand soft fruit production.

The report shows an average industry EBITDA in 2023 of just 4.3 per cent. This “wafer thin” level of return on investment does not support ongoing investment, Marston said.

Survey data shows that 48 per cent of producers have negative expectations for the future; aver a third have experienced a rise in costs between 21 and 40 per cent; and 43 per cent of growers have either cut back or maintained their capital investment since 2020. Meanwhile, the majority are not availing of support schemes like R&D tax credits.

“We need government and retailers to help us help Britain. Retailers, very simply by recognising the cost-of-production inflationary pressures and the need to compensate growers for this. And government by evolving a rolling and fit-for-purpose workers visa scheme, delivering a clear national planning framework that facilitates the building of critical infrastructure, and unlocking funding for improved productivity and technology.”

With this support, the British berry industry “can evolve to support ongoing growth of the domestic market and take advantage of a real opportunity to grow more crop for export”, Marston believes.

The EY report highlights the economic contribution of the UK berry industry, which currently provides more than 16,000 full-time jobs, contributes £624 million per year in Gross Value Added, and pays over £130mn a year in tax, as well as boosting the wider rural economy and supporting local services and jobs.

Key challenges

The study summarises the six key challenges facing growers as follows:

1. The seasonal workers scheme is a lifeline for the industry but there are areas for improvement. These include the need to extend visas beyond six months to match the extended growing season; problems with the ‘Employer Pays Principle’; and ethical concerns with the scheme.
2. The cost of production has grown exponentially in recent years. Most notably, the National Living Wage increased by 59 per cent from 2016 to 2024, often at short notice. Meanwhile, other costs such as energy have also risen significantly.
3. Retailers have played an important role in the industry’s growth, but there is an imbalance of power. Fixed price and volume contracts, agreed months in advance, do not account for weather and yield variability. Increasing cost pressures from supermarkets are forcing growers to shoulder the rising cost of production in an energy, resource and labour-intensive industry.
4. Technological advances are being made but will not replace labour in the short to medium term. Given the fragility of soft fruit, robots cannot yet rival skilled pickers. The adoption of technology is most widespread in husbandry and crop yield diagnostics, allowing growers to monitor crops in real time.
5. There is a lack of transparency and accessibility in key legal and compliance requirements. Planning permission requirements and guidance vary significantly across local authorities. This has resulted in disincentives for capital expenditure, such as higher fees to erect polytunnels, delays, and unclear processes. The growing number of audits is also increasing cost and admin for producers.
6. In some locations, such as the Southeast, water scarcity is a challenge, posing risks as growers compete with new residential developments. However, growers make a significant environmental and rural contribution and are keen to expand on these efforts. Berry production is intensive, but producers know this and care for the local habitat, encouraging biodiversity and fauna.

Sustainability success

Dr Louise Sutherland, who leads research and development for BBG, emphasised that environmental matters are crucial to the industry’s survival. In this area, the EY report paints a more optimistic picture.

“Research among growers shows enormous appetite for sustainability,” she said. For example, more than 96 per cent of BBG members plant wildflower strips around their farms; almost all growers use IPM systems; and 100 per cent have water efficiency plans and measure water quality.

In addition, 96 per cent either buy renewable energy or generate their own using solar panels; 57 per cent are upgrading their coldstores to reduce energy consumption; and 43 per cent are making fruit transportation more energy-efficient (43%) by trialling things like EV forklifts.

In terms of sustainability the industry is “working extremely hard and delivering much quicker than many other parts of the economy”, Sutherland said. “If the industry fails, it won’t be because it has neglected its environmental responsibilities.”

The health opportunity

In addition, the report highlights the importance of making berries more relevant to increasingly health-conscious consumers.

Registered nutritionist, author and podcaster Rhiannon Lambert spoke at The House of Lords about berries’ many health benefits thanks to being high in fibre, vitamins and antioxidants.

“In a world where so much noise exists around ultra-processed and HFSS foods, it is important to remember just how easy a win berries are for families across the UK,” she said.

Lambert has a strong focus on the food parents give their children and pointed out that breakfast is one meal they have more control over.

“We already see hundreds of thousands of people adding berries to cereals, porridge, yoghurts and smoothies,” she said.

“If we can persuade these shoppers to do this at least two or three days a week, and can persuade others to try it at least once or twice a week, we can make an enormous difference.”

She added: “Ultra-processed and HFSS foods have multi-million-pound ad and PR budgets to seduce consumers with, but our brilliant British berry growers don’t.

“If government and retailers are serious about public health, they need to be serious about helping us be just as seductive with fresh food.”