Defra has announced that it will not extend the Fruit and Vegetable Aid Scheme, and the government has not stated if there will be any scheme to replace it either. This has left English and Welsh growers in producer Organisations uncertain about the future and about their ability to keep up with European, as well as growers from other parts of the UK. Agriculture in the UK is devolved, and the Scottish and Northern Irish governments voted to continue the Scheme.
© Chris Rose
Berry growers are particularly affected, as over 90% are in POs.
"We have known for some time that the PO scheme would end on 31st of December this year," said Chris Rose from Asplins Producer Organisation. "We had been hopeful of a replacement not dissimilar to the one we have. This may still come, but as yet, we have not heard about one. The scheme has been extremely effective in helping grow the soft fruit sector over the years. We made the change from open field growing to tunnels to table top production, we have also seen great improvements in yields. It has also helped keep prices low and improved market penetration."
The scheme works by matching funding; the growers contribute 4.1% of their turnover, and this is matched by DEFRA. The funds are spent on programs for innovation, marketing, environmental improvements, varietal development, and more.
"This would be a great loss, it would also mean that not only are English growers at a disadvantage to European growers, but also those in Scotland and Northern Ireland. This comes at a time when margins are already being squeezed and production costs are increasing. Some of the smaller growers won't survive this, I think there will still be alliances between growers but they will be more market focussed."
Many of the English POs have Scottish members who will also lose the funding; they are, of course, free to join Scottish POs if they choose to do so. But what would that mean for a continuous supply of soft fruit throughout the season?
"It would have a negative effect should the Scottish growers join other POs, but they may find that the marketing advantages in staying are better than the funding."
Chris said that the most disappointing thing is that nothing had been said about future funding at the time of the announcement, "The funding will run until the end of the year, so existing programs will be completed, but there are research programs which should run for longer, which will lead to complications."
For more information:
Chris Rose
Asplins Producer Organisation
Tel: +44 1795 594811
Email: commercial@asplinspo.com