Growers calling for fairer return as costs increase

British fruit and vegetable growers are feeling the pinch as the Covid-19 crisis has pushed labour costs up by up to 15%, according to a new report.

The report, carried out by farm consultancy firm Andersons, warns the cost increases are eroding confidence in the sector and leaving growers in an unsustainable situation.

Jointly funded by the NFU south of the border, British Apples and Pears, British Summer Fruits and British Growers, the report identified five key areas where growers’ labour costs have risen.

These are: Worker availability and recruitment; training; accommodation; transport and logistics; and operations.

Extra costs have been linked to new recruitment campaigns, additional training due to a lack of return workers from previous years, the purchase of new accommodation to meet quarantine requirements, and increased vehicle movements due to not being able to transport as many staff at one time.

The report said the coronavirus cost increases were in addition to a 34% increase in labour costs, which can account for up to 70% of total production costs, in the past five years.

Sector-specific analysis within the report suggests the increased costs could be worth £116 a tonne for strawberry growers, which based on an annual production of 132,000 tonnes equates to a cost increase of around £15 million.

Farm leaders are now calling on everyone in the supply chain, including retailers and buyers, to work with their supplier base to discuss these issues and how the supply chain can deliver fair returns to growers.