As the peak of the UK berry season approaches, the sector is facing an increasingly complex scenario. The conflict in the Middle East, now in its third week, is generating ripple effects that reach as far as supermarket shelves in the United Kingdom, significantly impacting the production costs of blueberries, raspberries, blackberries, and currants.
Rising energy and logistics costs
According to Nick Marston, chairman of the British Berry Growers, tensions in the Strait of Hormuz area are directly affecting the sector. This route is crucial not only for global oil transport but also for the international trade of fertilizers. Disruptions are driving price spikes, with immediate repercussions for producers.
The cost of diesel, in particular, has seen significant increases, pushing transport rates higher. Added to this are rising costs for so-called “red diesel” used in agricultural operations, as well as higher gas costs needed to heat greenhouses and permanent tunnels.
Fertilizers and agricultural inputs under pressure
The issue of fertilizers represents another critical factor. Dependence on vulnerable international routes makes the sector particularly exposed to geopolitical tensions. The current instability in the Strait of Hormuz therefore translates into a significant increase in input costs for UK producers.
Despite the overall rise in energy and logistics costs, labor remains the most significant cost component. For berry producers, labor accounts for at least 50% of total production costs. In this context, the 4.3% increase in the National Living Wage for workers over 21, scheduled for April 2026, represents an additional pressure factor, exceeding the rate of inflation.
A challenge for the entire supply chain
All these factors outline one of the most challenging contexts in recent years for UK producers. However, according to Marston, an opportunity also emerges: to strengthen collaboration between farmers and retailers in order to distribute cost pressures more fairly across the entire supply chain.
In a time of strong global uncertainty, the economic sustainability of berry production in the United Kingdom will increasingly depend on the ability to build strong partnerships across the supply chain. Only through a balanced sharing of cost pressures will it be possible to ensure continued investment and a stable supply for consumers.
Source text and image: www.fruitnet.com
