Consultation on fresh produce industry contractual relationships

Fruit and vegetable growers and industry stakeholders urged to submit views on transparency and fairness in the supply chain.

The Department for Environment, Food & Rural Affairs (Defra), in partnership with the Department of Agriculture, Environment and Rural Affairs (DAERA) and other devolved administrations, has launched a review on fresh produce in the edible horticulture sector. 

There are hundreds of different fresh produce crops which vary greatly in terms of the market the produce is sold to, growing conditions, and perishability.

The fresh produce sector has faced numerous significant challenges in recent years that have impacted crop production across the sector. 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, industry has reported a reduction in tomato and berry production in the past couple of years with further reductions expected next year. 

Industry engagement has highlighted concerns over declining profitability within the sector, leading many producers away from the industry, 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.  

This consultation will gather evidence about how supply arrangements in the fresh produce sector currently function and to explore the nature of the relationships between the various parties in the supply chain. It is also seeking views on whether the functioning of the supply chain can be improved, and whether there is a need for supply chain fairness regulations within the fresh produce sector.

Find out more about the consultation and how to respond.

First published 20 December 2023