Defra is undertaking a major consultation into contractual relationships in the fresh produce sector, with the nation’s growers encouraged to take part.
This latest consultation follows on from similar examinations of the pig and dairy sectors and is part of a government pledge to review supply chain practices.
Evidence will be gathered from individual businesses on how supply arrangements in the fresh produce sector currently functions.
It will also explore the nature of relationships in the supply chain, as well as whether the functioning of the supply chain can be improved.
The fresh produce sector has faced numerous significant challenges in recent years that have impacted crop production.
Energy, fuel, and labour costs have risen significantly at the same time as the sector has dealt with the impacts of unprecedented and volatile climate conditions.
The impacts can be seen across the sector; for example, growers have reported a reduction in tomato and berry production in the past couple of years with further reductions expected next year.
Industry engagement has raised worry over declining profitability, leading many producers to quit, particularly where crops require specialist infrastructure with higher associated costs of production.
Significant production cost increases add to supply concerns, if returns are unsustainable; for example, industry have reported that the cost of potato production has increased significantly in recent years.
NFU Scotland has called for vegetable, potato and soft fruit growers to complete the consultation, as a fairer deal was needed for the sector.
“I welcome a review of the contractual arrangements in the fresh produce sector," said NFU Scotland’s horticultural chair, Iain Brown.
"It must put in place regulation for a fairer deal for growers including a mutually agreed pricing mechanism, rules to prevent avoidance of agreed contracts and a ban on below cost selling similar to that already in place in some parts of the EU.”
The consultation, which closes for responses on 22 February 2024, follows similar ones that have already taken place looking at the dairy, pig and egg sectors.
