April Energy Price Shock To Push Up UK Salad Prices ‘Within Weeks’, Stress Growers

UK protected horticulture growers are warning that the nation is weeks away from unavoidable salad price rises or a suspension in production due to a planned 60-80% increase in electricity network standing charges from 1 April which also threatens vertical farming operations.

Unless the government intervenes, the UK will lose its salad production ability and competitiveness against European producers, according to British Tomato Growers’ Association (BTGA) and the Cucumber and Pepper Growers’ Association (CPGA). 

The April deadline marks a hard cliff edge for growers of tomatoes, cucumbers, and peppers, and, as such, “fast action is essential” to avoid a surge in food inflation across the sector, BTGA and CPGA said. 

“We are weeks away from unavoidable price rises for British tomatoes, cucumbers and peppers,” explained Simon Conway, Chair of BTGA. “If the Government doesn’t act before the 1st of April, growers will have no choice but to pass these costs on or stop production altogether.”

UK Urban AgriTech (UKUAT) has issued a separate warning, arguing that the proposed changes pose a significant financial risk to the UK’s controlled environment agriculture (CEA) sector, including both protected horticulture and vertical farming operations.

UKUAT pointed out that while current data focuses on protected horticulture, Vertical Farms (VFs) face an equally severe threat, meaning their higher production costs are also likely to feed through to consumers. 

“The planned charges are based on grid pull capacity rather than actual energy usage, meaning larger, energy-intensive VFs, including major operators, could shoulder enormous additional costs,” the group warned. 

“Even smaller vertical farms, which already operate on razor-thin margins, face existential challenges. These higher charges will also deter investment in new VFs, as reduced margins increase risk and weaken the business case for growth.”

Calls Grow For Relief Scheme Update

Considering the threat to UK food security, the industry bodies are calling for urgent government action, including revisiting eligibility for relief schemes such as the Energy Intensive Industries (EII) exemption so that protected horticulture can access similar support to other energy‑intensive sectors. 

The industry bodies claim that updating the EII eligibility rules to include controlled environment agriculture, protected horticulture, and vertical farming would lift the pressure immediately on UK food production, and help to avert ongoing food inflation.

“This is a preventable crisis,” BTGA’s Conway stated. “Without urgent action, domestic production will shrink, imports will rise, and consumers will pay the price.”

The higher non-commodity network costs would add hundreds of thousands of pounds to annual bills for some large glasshouse operators on top of already elevated energy prices. 

This could trigger business closures and reduced domestic production if costs cannot be passed down the supply chain, the associations stressed.

BTGA and CPGA said some glasshouse businesses are facing additional electricity charges of up to £1 million each year, with a similar increase next year. 

Conversations with Ofgem and Defra are ongoing. 

Source: HortNews