Rising costs linked to the Middle East conflict are affecting UK fresh produce supply chains, with berry growers reporting pressure ahead of the summer season. The British Berry Growers Association said disruption in the region is increasing input costs, including fuel and fertiliser, as instability around the Strait of Hormuz affects global supply routes.
Chairman Nick Marston said growers are seeing a "knock-on effect" as transport and production costs increase. "The conflict in the Middle East is certainly having a knock-on effect on the costs faced by British berry growers. External transport costs are rising as hauliers link their rates to the price of diesel, which has spiked."
He added that the fertiliser supply is also affected. "The Strait of Hormuz is not only vital for global oil transport, but it is also a key shipping route for global fertilizer trade. As this is facing significant disruption amid the conflict, the knock-on effect on our members' input costs is severe."
Growers are also managing higher energy costs, including red diesel for machinery and gas used to heat glasshouses and polytunnels. Labour remains the largest cost component, with the increase in the National Living Wage in April expected to add further pressure. Wages already account for more than half of production costs for many growers.
"British berry growers are experiencing significant cost pressures from all directions," Marston said.
He said collaboration between retailers and suppliers will be required to maintain supply and support investment in UK production. "There is a clear opportunity for retailers and growers to work in partnership to ensure these additional costs are fairly recognised across the supply chain."
The UK government recently held discussions with farming leaders on food supply chain resilience. The National Farmers' Union reported uncertainty among farmers regarding the cost of inputs such as fuel and fertiliser, which are widely used during spring planting and livestock production.
Source: Retail Gazette
