Fruit growers are warning of a tough year ahead as rising energy costs and wage increases continue to create challenging circumstances.
A lack of fair retailer returns has also been cited by growers as a continuing issue, threatening the future success of the sector.
British Berry Growers, the body representing 95% of British berries sold in the UK, warns there are 'very tangible risks' facing many businesses.
It has today (13 January) called on retailers to play a significant role in the sector's recovery or else growers will struggle to expand and meet demand.
"This would be a tragedy when the ongoing growth of the overall retail market gives a huge opportunity to increase our UK home production and self-sufficiency," said Nick Marston, chairman.
Fruit growers are also having to compete with more berries being imported from other markets, according to British Berry Growers.
Despite the overall market growth for British and imported berries in the UK, the share of British berries has shrunk by 2.5%, while the volume of imported berries increased by 15.1%.
The warnings come despite the British berry market reaching a total market value of £2 billion for the first ever time.
The sector's growth has been largely fuelled by rising consumer demand, with berry sales volumes increasing by 4.3% in the past year alone.
However, despite reaching this milestone, conditions for growers are becoming increasingly challenging.
According to a report by the professional services firm EY, the rate at which the sector has grown has significantly decelerated in recent years.
The Compound Annual Growth Rate (CAGR) in the volume of berry sales dropped from 7.8% between 2012 and 2019, to just 1.3% between 2019 and 2023.
Reasons for this declining growth are primarily centred around the rise in the costs of production, the report states.
These include rising energy costs and increases in the national minimum and living wage rates, as the the National Living Wage rose by 59% between 2016 and 2024.
A majority (71%) of growers surveyed in the EY report experienced operating cost increases in excess of 20% between 2020 and 2023.
For the vast majority - 85% of growers – revenue returns did not keep pace with the operating cost increases.
British Berry Growers says that for many businesses, the sector's recovery is not being sufficiently supported by fairer retailer returns.
Though the average retail price of berries rose by 14.5% between 2020 and 2023, the average price paid to growers by retailers only increased by 11.2% in the same period.
The body warns that this is not enough to help cover non-wage operating cost increases of 37% on average.
Mr Marston concluded: “As we start 2025, it is clear that collaborative action is essential to ensure the survival and continued growth of the British berry industry.
“Retailers, policymakers, and industry stakeholders must come together to support British growers, through fairer pricing and extended access to a seasonal workforce.”
