One third of new apple trees have not been planted by growers due to soaring production costs, British Apples & Pears has revealed.
The grower body carried out a survey of its members, who represent 80% of the British topfruit industry, and found that 150,000 new apple and pear trees have been cancelled for this season.
The intention from growers had been to invest in the long-term future orchards by planting 480,000 new trees, BAP said. However, one third of those orders had now been cancelled.
BAP executive chair Ali Capper attributed the move to unsustainable supermarket returns. She explained input costs had risen by 23% over the past year, which had been “met with almost static average fruit prices paid by retailers”.
Capper had first warned that growers were reducing plantings at the end of last year, when she told The Grocer low returns were “endemic” across fresh produce, while the relationship between growers and retailers had in many cases deteriorated.
BAP members had reported receiving an average 0.8% year-on-year increase in what supermarkets paid them for their fruit, despite an independent report by Andersons Consulting recommending they should receive a minimum 12% increase in returns.