16 Oct 2024

UK supermarkets urge berry industry to work together to overcome the crisis

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Supermarkets are reportedly facilitating group meetings between breeders and competing soft fruit producers to share best practices and stabilize supply.

UK berry supply chains have become more coordinated and less competitive in the past couple of seasons due to frequent fruit shortages. Major independent producer Chambers assessed the sector is facing surging production costs, climate volatility, and availability issues, making supply security a critical focus.

Sector facing challenges

Chambers reported that berry producers are developing more collaborative relationships, both internally and with other growers, breeders, propagators, and retailers. Group CEO Vicky Rye highlighted, “There’s more demand than supply, so why fight? We can make the sector better for everyone.”

Chambers’ commercial manager Ben Norman said that some UK supermarkets are facilitating conversations among suppliers, inviting them to share knowledge and speak to breeders to improve plant material and meet customer needs.

A shift in the industry

Production director Salih Hodzhov noted this is a “big change for the industry,” adding that “it’s still early days,” but collaboration seems positive for all involved. “We’re all aiming for the same thing – consistent fruit for the customer,” he said.

Chambers is also more collaborative than before, shifting to a pull model where production and demand are closely coordinated. Many UK soft fruit growers have left the sector due to unsustainable costs and insufficient returns.

The risk for growers

Rye indicated that growers lacking control over pricing and changes are most at risk. Tim Chambers noted that the berry sector is currently “more of a sellers’ market” due to lower availability, higher prices, and a shift in power between producers and retailers.

In the premium segment, there is a seasonal supply gap in the autumn, as UK production ends and imports begin. This frustrates retailers, and discussions continue on how best to manage premium supply consistently, with differences in opinion on what "premium" should mean – “the best ever” or “the best at that time.”

Read full article: Fruitnet

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