Berry And Topfruit Growers Sound Alarm Over Input-Cost Shock

Escalating costs due to the Middle East conflict are starting to ripple through the UK’s fresh produce supply chain, with British berry and topfruit growers warning of increasing financial pressure in the run up to the key summer season.

The British Berry Growers Association (BBGA) said instability around the Strait of Hormuz – a key global trade corridor – is pushing up input costs such as fuel and fertiliser. 

The warning is echoed by British Apples & Pears Limited (BAPL) which said in a press release that the “rapid escalation” in costs has landed at one of the “worst possible” moments as topfruit growers secure fertiliser and fuel at the start of the season. 

BBGA’s Marston is calling for greater collaboration between retailers and growers to ensure that additional production costs are recognised across the supply chain. 

“There is clear opportunity for retailers and growers to work in partnership to ensure these additional costs are fairly recognised across the supply chain,” he noted.

BBGA chairman Nick Marston said UK berry growers are already feeling the “knock-on effect” of rising transport and production costs due to the conflict in the Middle East.

“External transport costs are rising as hauliers link their rates to the price of diesel, which has spiked,” he said.

Fertiliser supply is also a growing concern given the region’s central role in global trade.

Marston noted that the Strait of Hormuz not only underpins global oil exports but also serves as a major artery for fertiliser shipments. Continued disruption, he said, is now hitting growers’ input costs severely.

Beyond that, the berry sector is grappling with higher energy costs – from red diesel used in equipment to gas required for heating glasshouses and polytunnels.

Topfruit Producers Under Immediate Pressure 

Ali Capper, executive chair of BAPL, said topfruit growers already under pressure from audit burden and labour costs now face a fresh input-cost shock. 

One British apple farm reported that the cost of fertiliser was 42% higher than the same time last year, while kerosene/heating oil has jumped from around 65p/litre to £1.30/litre in recent weeks. 

BAPL said growers are also reporting sharp volatility in red diesel pricing and availability.

“Growers can’t simply pause buying fertiliser, fuel and energy,” Capper pointed out. “If these cost spikes persist through the spring, they will feed directly into food inflation – and it’s vital that government and the supply chain act early. 

"Ministers and the Bank of England need to understand what’s happening on the ground, and the Grocery Code Adjudicator should remind retailers of the rules around cost-inflation discussions so legitimate increases can be addressed fairly.”

Rising Labour Costs Intensify Impact

At the same time, labour remains the single largest expense for berry producers. 

The upcoming rise in the National Living Wage this April is expected to intensify cost pressures, with wages already accounting for more than half of many growers’ production costs.

“British berry growers are experiencing significant cost pressures from all directions,” Marston said. 

According to BAPL, audit and compliance demands as well as labour costs are the dominant pressures facing UK apple and pear businesses.

Closer Collaboration Is Crucial

The warnings from BBGA and BAPL follow recent government talks with farming leaders on food supply chain resilience. 

The NFU has expressed growing concern over the volatile prices of essential inputs like fuel and fertiliser. 

These materials are particularly critical during the spring planting season and for ongoing livestock operations. 

BAPL said it is working closely with fellow crop associations and sector bodies to highlight the ‘on farm’ impacts of the current conflict to political stakeholders. 

Source: Retail Gazette