Source: www.exchangerates.org.uk
The drop in the value of the pound of course has a big impact on UK importers. Peter Davis from Davis Worldwide explains, "Deals done in December which showed a profit are now giving losses and deals done in January are very expensive. A 0.50p per crate increase is more than your profit and more than the market can withstand and has slowed imports."
"It is the importers who take the hit," according Davis. "Some importers do forward buy their Euros, this is when you call the bank to order your Euros for the delivery date of the produce. Most people don't do this though."
Although bad for importers it is better news for exports said Davis, who as well as importing, exports potatoes, beetroot and cauliflower. "Here we are making more and also the Euros are coming into our bank account. But this is not enough to compensate for the losses incurred by 9% drop in the exchange rate in a month."
The exchange rates are not the only challenges for UK importers as Davis explains, "Already it has been a very weird start to the New Year in many ways, we are now cutting varieties in France which should be harvested in March, same thing is happening in Spain. Come mid March there will be a shortage of all brassicas. Also English spinach is usually finished at the end of October, but they just finished cutting it two weeks ago in the Lea Valley, said Davis. "In Spain temperatures are around the 20°C and growers are facing a massive lack of water, 20 years ago the River Ebro was a fast flowing river, 2-3 years ago it was trickling and this year it was completely dry."
For more information:
Peter DavisDavis (Produce ) Ltd
Tel: 0044 1507 600969
0044 1507 600969Mobile: 0044 7770 900 920
0044 7770 900 920Email: PJDEnglan@aol.com