Rising costs linked to the Middle East conflict are beginning to hit UK fresh produce supply chains, with British berry growers warning of mounting pressure ahead of the summer season.
British Berry Growers Association said disruption in the region is driving up key input costs, including fuel and fertiliser, as instability around the Strait of Hormuz impacts global supply routes.
British Berry Growers Association chairman Nick Marston said growers are facing a “knock-on effect” as transport and production costs rise.
“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 fertiliser supply is a growing concern, given the region’s importance to global trade flows.
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“The Strait of Hormuz is not only vital for global oil transport, it is 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 contending with higher energy costs, including red diesel for machinery and gas used to heat glasshouses and polytunnels.
Alongside these pressures, labour remains the largest cost driver for the sector with Marston adding the upcoming increase in the National Living Wage in April will add further strain, with wages already accounting for more than half of production costs for many growers.
“British berry growers are experiencing significant cost pressures from all directions,” he said.
He added that closer collaboration between retailers and suppliers will be essential to maintain supply and support continued 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.”
Last week, UK government held talks with farming leaders about the resilience of the country’s food supply chain, as the NFU revealed farmer’s uncertainty around the price of key farm inputs such as fuel and fertiliser, which are widely used during spring planting and livestock production.
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