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Berries at a Crossroads: £2bn Boom Meets Looming Crisis

The British berry growing industry faces an alarming future despite its market value soaring to an unprecedented £2bn. The British Berry Growers, the industry's leading body, warns that escalating energy costs and rising wages are creating ‘challenging circumstances’ for fruit farmers.



This cautionary note follows a dire prediction from July 2024 by British Berry Growers, which revealed that two-fifths of British strawberry and raspberry growers could shutter their businesses by the end of 2026 due to mounting costs and the adverse impact of poor supermarket pay. Now, the industry body highlights another pressing concern: a persistent lack of ‘fair retailer returns’.


Representing 95 per cent of the British berries sold across the UK, British Berry Growers proudly notes that the market has hit the £2bn mark for the first time. Yet, alongside this remarkable milestone comes a stark warning. “There are very tangible risks which threaten the industry’s future,” says Nick Marston, chairman of British Berry Growers. “We are immensely proud of reaching this milestone, and of the industry’s resilience in the face of challenging operating conditions.


“But it is also clear that there are very tangible risks which threaten the industry’s future. In particular, it’s clear that retailers have a significant role to play in the industry’s recovery. Without their support, growers will struggle to expand production and meet the ever-growing demand for fresh British berries. This would be a tragedy when the ongoing growth of the overall retail market gives a huge opportunity to increase our UK home production and self-sufficiency.”


The dramatic rise in market value follows the sector’s £1bn achievement in 2015, with the average year-round berry price soaring by 6.9 per cent over the last year alone. A new EY report commissioned by British Berry Growers underscores the industry's substantial economic contribution: adding £624m to the economy, paying £134m in taxes, and supporting 16,317 full-time equivalent jobs.


However, the report also reveals a disturbing slowdown. The growth rate of the industry has decelerated sharply, with the Compound Annual Growth Rate (CAGR) of berry sales volume falling from 7.8 per cent between 2012 and 2019 to a mere 1.3 per cent from 2019 to 2023. British Berry Growers attributes this troubling trend primarily to soaring production costs, driven by climbing energy prices and increases in the national minimum and living wages.


Adding to the crisis is the disconnect between retail prices and the returns paid to growers. While the average retail price of berries increased by 14.5 per cent between 2020 and 2023, the amount retailers paid growers only went up by 11.2 per cent during the same period. The industry body asserts that this gap is a major factor undermining the sector’s recovery.


Marston passionately concludes: “As we start 2025, it is clear that collaborative action is essential to ensure the survival and continued growth of the British berry industry. Retailers, policymakers, and industry stakeholders must come together to support British growers, through fairer pricing and extended access to a seasonal workforce, to ensure the future of one of the UK’s most important agricultural sectors.”


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