The UK berry industry could face a staggering £60 million annual increase in costs due to proposed changes in the Supplier Ethical Data Exchange's (Sedex) SMETA 7.0 audit regime.
At the heart of the controversy is the proposed 'employer pays principal,' which could force growers to cover the recruitment and transportation fees of their seasonal workers.
"The new requirements have been introduced without proper consultation," said Nick Marston, chair of British Berry Growers. "There is no clarity on how the supply chain is going to pay for these new requirements, we are very concerned that growers could be forced to foot the bill."
The industry body estimates the new SMETA 7.0 auditing requirements could cost the sector an extra £60 million annually. This comes at a time when the industry is already grappling with rising costs and labor shortages.
The changes also precede a British Retail Consortium (BRC) and Defra impact assessment into the workability of the employer pays principle, due in 2025.
British Berry Growers is calling for the removal of the employer pays principle from the SEDEX 7.0 audit and for the BRC to confirm that no action would be taken against suppliers who fail to meet these new requirements.
Mr. Marston stressed the urgency of the situation: “The burden of the cost cannot be absorbed by our members without the cost being underwritten by either retailers or the government. There are serious implications for the UK food price inflation and security.”
The potential impact of these changes on the berry industry, and ultimately on consumer prices, remains to be seen. But one thing is clear: the industry is facing a significant challenge, and the stakes are high.
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