David says: Will exotics be affected? Of course
The cost of fresh fruit and vegetables will soar this year as European farmers shun the plunging pound. British importers believe shoppers will face increases as high as 20 per cent in coming weeks, with some produce disappearing from our shelves altogether. All sorts of fresh produce is affected but potatoes, onions and tomatoes are particularly at risk from fluctuating prices.
Producers and growers on the Continent are losing out because of sterling's slide and are putting up their prices for the UK market to compensate or bypassing it altogether in favour of their eurozone neighbours who have not been hit by sterling’s currency slump.
In weeks the pound has lost almost a quarter of its value against the euro, creating a nightmare for importers.
While independent shops will be hardest hit because they don’t have the commercial muscle of the major supermarket chains, even retail giants like Tesco and Sainsbury’s will be forced to up prices, if pressure on margins continues.
Some analysts believe even more greengrocers will disappear from our high streets. Simon Lane, managing director of importers Fruco plc, said: “The problem is that the producers and growers have the option to sell to other markets in the EC. “Margins when dealing with sterling are being squeezed all round and inevitably people here will have to pay more for their fresh produce.” More than 3,000 greengrocers have vanished from Britain’s high streets in the past decade.
Alex Liasi, of wholesalers 4degreesC in London’s New Spitalfields market, said: “One of our farmers in Spain says he is currently losing £500 on every lorry load of fresh produce he sends to the UK. “A lot of produce is now being shipped to Russia because they are prepared to pay more than we are.
Fruit and vegetable prices are already at risk from controversial European Union rules which would see many of the pesticides used by UK farmers outlawed.
Source: internationalsupermarketnews.com
Publication date: 1/8/2009
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