The British berry industry is a significant contributor to the UK economy, with total grower revenue reaching an estimated £577 million in 2023. This figure represents the farmgate value of UK-grown berries, excluding imports and retail margins. The sector supports 16,317 full-time equivalent (FTE) jobs and contributes £134 million in taxes to the UK economy. The Gross Value Added (GVA) of the industry is estimated at £624 million, encompassing direct, indirect, and induced impacts from grower operations and capital expenditure.
The British berry industry is dominated by four main berry types: strawberries, raspberries, blueberries, and blackberries. Among these, strawberries account for over 80% of total berry production by volume, making them the backbone of the sector. The market is heavily influenced by supermarket sales, which account for 97.7% of berry sales to end consumers. The top three retailers control nearly half of all sales, reflecting a concentrated market structure.
Over the decade from 2012 to 2023, the industry saw an overall increase in production volumes, with the tonnage of berries growing by 78.4%. However, this growth has not been evenly distributed. While strawberries have maintained stable growth, the raspberry sector has faced challenges, with a 3.9% annual decline in production from 2019 to 2023. Blueberries, once the fastest-growing segment, have also experienced a slowdown in growth to just 2% per year during the same period.
British berry growers are contending with rising production costs, including significant increases in labour expenses, which now account for 53.9% of operating costs. The National Living Wage has risen by 59% from 2016 to 2024, placing further strain on growers' profitability. Non-wage costs, such as energy and packaging, have also surged, creating a challenging financial environment for producers.
The industry also struggles with the dominant role of supermarkets, which set rigid pricing terms in advance of the growing season. These contracts prevent growers from adjusting prices in response to changing market conditions, leaving them vulnerable to financial losses during poor harvests. Additionally, growers face competitive pressure from imported berries, particularly in the blueberry sector, where the UK is not self-sufficient.
To ensure the long-term sustainability of the British berry industry, stakeholders have proposed several measures. These include increasing government support for domestic production, improving the Seasonal Worker Scheme to ensure a sufficient labour supply, and negotiating fairer terms with retailers to better reflect the risks borne by growers. Enhanced investment in research and development, particularly in sustainability and pest management, is also seen as essential to maintaining competitiveness.
The British berry industry remains a critical component of the UK's agricultural sector, generating significant economic value and supporting thousands of jobs. However, its future growth is threatened by rising costs, retail market dominance, and increasing competition from imports. Targeted support from policymakers and more equitable relationships with retailers will be essential for securing the industry's long-term sustainability.
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For more information:
Sarah McDowell
EY Business Advisory Services
Tel: +44 73 855 25831
Email: [email protected]
www.ey.com