Fresh produce supply chain in ‘battlefield’ warning
The union has warned of “a culture of poor practice” in the fresh produce supply chain and set a blueprint for best practice in an update to its Catalyst for Change report, first published three years ago.
The supply chain now faced a key choice, said NFU horticulture board chairman Guy Poskitt. “Growers have the choice to grow less produce to manage their exposure to risk; retailers have the choice to do things differently,” he said.
‘Longer term commitment’
“We’d like them to choose to pledge their longer term commitment to British horticulture by signing up to the NFU’s Fruit and Veg Pledge and be part of the sector’s success as it fulfils its great, and growing, potential.”
While progress has been made against the report’s initial recommendations in 2012, growers still complained of intense price pressure and competition for market share, he said.
‘Curbing abuses’
“A lot of progress has been made since we launched Catalyst for Change three years ago. Aldi has become the first retailer to endorse the NFU’s Fruit and Veg Pledge – our charter for best practice in the supply chain; there are some encouraging signals from other retailers seeking a longer-term deal with suppliers; and the Groceries Code Adjudicator is proving effective in curbing abuses of the Grocery Supply Code of Practice.”
The choice
“Growers have the choice to grow less produce to manage their exposure to risk; retailers have the choice to do things differently”
- NFU
But the job was “far from done”, he added. “Growers are fearful that, under intense price pressure and competition for market share, retailers are regressing to short-term thinking. All of the recommendations we made in 2012 still apply today – and are captured by our Fruit and Veg Pledge.”
Meanwhile the value of field vegetable production fell by 14% to £885M since 2010, with the biggest drop occurring last year.
UK imports of fruit and vegetables were 18 times higher than the volume of exports last year. Moreover the value of imported produce is increasing, creating a UK trade deficit of £4.7bn in fruit and vegetables in 2014.
Read more about the report here.
Catalyst for Change report update – at a glance
- UK is 58% self-sufficient in vegetable production, down by 3.3% since 2010
- 11% self-sufficient in fruit production, down by 1% since 2010
- Value of field vegetable production has fallen 14% (to £885M) since 2010; the largest drop in value occurred in the last year;
- UK imports of fruit and vegetables 18 times higher than exports last year
- Value of imported produce is increasing, creating a UK trade deficit of £4.7bn in fruit and vegetables in 2014
