British fruit growers frequently complain that supermarkets place impossible conditions on the appearance, quality and price of their products.

Similar documents
Banana Split game. Suitable for Key Stage 2 and above

Level 2 l Intermediate

4. Causes and prevention of food losses and waste

By Dr. John L. Stanton Professor of Food Marketing Saint Joseph's University

FOOD 2030: How we get there

National Apple Orchard Census 2012

FEEDING OUR CHILDRENS FUTURE: AN INTRODUCTION TO THE PROGRAMME. A food-web mapping project for children aged 7 to 11 from Transition Network

F What price our food? So what s wrong with paying less and getting more? Social costs Environmental cost How can my food choices make a difference?

S.W.O.T. Analysis Identifying Your Strengths, Weaknesses, Opportunities, and Threats

New York apple growers are reeling

Sustainable agriculture in the UK

Analysis of the determinants of prices and costs in product value chains

KITEX Kereskedelmi Szaknyelvi Vizsga TASK BOOKLET READING

Cut Florals As Specialty Crops In Iowa: Assessing Local Market Needs and Producers of Floral Products in Central Iowa.

Consumer rights to return faulty goods

Monday 19 May 2014 Afternoon

Farming. In the Standard Grade Geography exam there are three types of farming you need to know about arable, livestock and mixed.

DISTRIBUTION CHANNELS

Profitable Heirloom Tomatoes. Table of Contents. Introduction Meet Four Successful Growers Selling Tomatoes On ebay...

Basic Farming Questions What did you grow on the farm when you first started? Are you a first generation farm owner or has your family been in

Investing in agribusiness schemes?

Review of Canadian Apple Market & Trends

ANTIOXIDANT USE IN APPLE AND PEAR STORAGE

Bring fresh and affordable local food to your university

How To Insure Cotton

Oldham Council innovates with dual-use compostable carrier bags

Starting an Agricultural or Food based Business

Consumer needs not being met by UK grocery market A British Brands Group research publication

Red Tomato IPM Working Group (IWG): Educating Wholesale Trade Buyers to Promote IPM Submitted by Red Tomato, December 2005

5 A DAY Fruit on Desk Growing Fruit and 5 A DAY. Vegetables Food. Co-operatives Mobile. Mobile Fruit & Vegetable Vans. Fruit & Vegetable Vans

The three most important things in retailing are location, location and location.

What did you have for breakfast this morning? Do you know where the things you ate and drank were produced or grown?

AGRICULTURAL ALTERNATIVES

Washington State Industry Outlook and Freight Transportation Forecast:

Keeping Pennsylvania Growing

Seasonal Work at Haygrove

Food Safety Challenges Facing the Pistachio Industry. Bob Klein, Manager Advisory Committee of Pistachios California Pistachio Research Board

ECONOMIC CONSIDERATIONS IN PISTACHIO PRODUCTION

Frequently Asked Questions about New Leaf s National Accounts Program

Chapter 2 Market Structure, Types and Segmentation

The three tests of mental ability you will be asked to do at the AOSB are:

OBJECTIVES: To understand decisions farmers must make in order to stay in business and how the government actions can impact these decisions.

Total Factor Productivity of the United Kingdom Food Chain 2014 final estimate

This involves making goods or services available for those who want to buy them

Action Plan. Securing crop supply through whole crop purchasing

III Impact Analysis Research Brief A: Market Outlets

One of the most wrenching changes in China s agricultural economy over

Feeding the Nation: creating a resilient, growing food industry. Labour s Policy Review

Economics Chapter 7 Review

Classification of Business

A. & B. NURSERY. February John A. Smith 724 Nursery Rd. Anytown, PA (555)

InnoVeg. Horticulture Australia Limited. Front cover CASE STUDY. Direct Sales and Food Safety

Apple and Pear Industry Strategic Investment Plan

Goodbye, fish and chips: changing trends in British dining. halve dataset triple prudent soar consumption shift calorie belated skimmed

Banana value chains in the United Kingdom and the consequences of Unfair Trading Practices

MARKETING MANAGEMENT OF KASHMIR APPLE

This quick guide provides a summary of food safety and labelling advice for small scale home producers of chutneys, pickles, flavoured oils and jams.

WHITEPAPER: GETTING SERIOUS ABOUT STOCK Take control of stock with an integrated ERP system

Guide to Cereals in the UK

Indian Agrochemical Industry

Chapter 4 Supply and Demand Macroeconomics In Context (Goodwin, et al.)

UNECE STANDARD FFV-52 concerning the marketing and commercial quality control of EARLY AND WARE POTATOES 2011 EDITION

Risk Management for Greenhouse and Nursery Growers in the United States

Algebra: Real World Applications and Problems

Pesticides in our air and in our bodies.

Chapter 7: Market Structures Section 1

California handlers describe marketing issues for organic kiwifruit

How to choose the best software for your retail newsagency By Mark Fletcher, CEO, Tower Systems Updated March 19, 2009

Agricultural Marketing. Direct Marketing Strategies and Opportunities. Commodity or Niche? MARKETS DEFINED

Total Factor Productivity of the United Kingdom Food Chain 2013 final estimate

Horse Meat Production in Canada

FOOD WASTE IN KENYA UNCOVERING FOOD WASTE IN THE HORTICULTURAL EXPORT SUPPLY CHAIN

Ebenezer Quartey, Research Department, COCOBOD COCOBOD PRESENTATION. 1 Introduction

Pricing, Cost Structures, and Profitability in the Australian Vegetable Industry

Apple Netting Financial Analysis Tool

Elasticity: The Responsiveness of Demand and Supply

Use less water Page 1 of 6

These tests contain questions ranging from Level 3 to Level 4. They get progressively more difficult. Children should have five seconds to

Pesticides Matter. Reduce your exposure to toxic pesticides and protect your health and the health of your family

The European PCB Industry in 2015 What is the future of our industry? Where are we going? Is the Future already written or can we change it?

Delivery Matters. Understanding the needs of online shoppers in the USA in USA Edition

Was this a more challenging adventure, given that you were relative strangers to Ribera?

Preventing rapid ripening of Pink Lady and Fuji apples

Codestorm. E-commerce, Direct Mail, Order Fulfilment and Digital Print. Delivering results. to you and your customers

The California Fresh Produce Industry and Marketing Trends

Fractions, decimals and percentages

THIRD EDITION. ECONOMICS and. MICROECONOMICS Paul Krugman Robin Wells. Chapter 19. Factor Markets and Distribution of Income

Cash, tax evasion and the hidden economy. Call for evidence Publication date: 25 th November 2015 Closing date for comments: 27 th January 2016

Cold Facts About Frozen Foods

Communicating Sustainable Food Certification Schemes and the Supply Chain

Promoting Pollination Farming for Native Bees

Ask the groups to read their cards and give them 5 10 minutes to think about their roles. How do they feel about it? Is everything clear?

Bayer CropScience Aditya Birla. Okra Project. The Indian Food Chain Vegetable Project

Economics. Worksheet Circular Flow Simulation

GP attitudes and practices relating to the provision of medical evidence as part of the Employment and Support Allowance (ESA) claim process

Project Leader(s): John Mishanec, Vegetable IPM Program, Cornell University, 126 State St., 2 th floor, Albany, NY jjm27@cornell.

Most Common Words Transfer Card: List 1

Functional Skills English Assessment Reading Level 2

Preserving Wild Ginseng in Minnesota

Request for Proposal (RFP) for Online Ordering System. CDFA grant: A growing Movement to Seed Change

Transcription:

Media Briefing October 2002 Supermarkets and Great British fruit British fruit growers frequently complain that supermarkets place impossible conditions on the appearance, quality and price of their products. Friends of the Earth sent surveys to 100 apple and pear growers asking them about the difficulties they face in meeting the specifications of the supermarkets for the appearance of their fruit. The results reveal just how tough a task they face trying to make a living out of supplying fruit to the major supermarkets. Unfortunately, Friends of the Earth cannot release details of the growers who responded to our survey. One grower told us that they'd love to give contact details "but if leaked to supermarkets I would be delisted and so forced out of business". THE HIDDEN PRICE OF COSMETICS Supermarkets like to promote the high quality of the fruit they sell but they don t tell their customers the price that they are paying to have cosmetically perfect fruit on their shelves. They don t tell us how much fruit goes to waste or is sold at a loss because it didn t meet their specifications. This includes:! fruit that has minor skin blemishes,! apples that are either not red enough or are too red,! fruit that is too big or too small,! pears which are the wrong shape. In our view, these are mainly the concerns of the big retailers rather than consumers. An issue that is of concern to consumers is the presence of pesticides in fruit our survey reveals that additional pesticide sprays have to be used to meet the supermarket s cosmetic requirements. Supermarkets are keen to appear to support and promote British apples and pears. But the reality is that many growers are going out of business. They cannot compete in an increasingly global market Page 1

and they find that supermarkets are not giving much shelf space to home-grown fruit. KEY SURVEY FINDINGS! Supermarkets reject apples and pears for a variety of reasons which have nothing to do with the eating quality of the fruit, for example colour, non-harmful skin blemishes, shape, size and hail damage.! One grower had a whole crop of apples rejected by the supermarkets even though the fruit was still good to eat.! Rejected fruit is likely to go for processing (resulting in a lower price for the grower) but in many cases it is simply wasted, left on the tree, on the orchard floor or dumped.! Even cooking apples get rejected due to cosmetic standards despite the fact that they will normally be peeled.! Supermarkets go beyond the already strict standards for cosmetic appearance set out by the EU and they buy very little Class II fruit, a standard which allows more flexibility in appearance and size.! The appearance standards have got more demanding over the last five years making it harder for growers to comply with them.! Supermarkets pre-occupation with appearance is forcing growers to use more pesticides on their fruit! Growers find it difficult to compete with the appearance of imported fruit [1]! Fruit also gets wasted because supermarkets don t give enough shelf space to British fruit, because they change orders or cancel them at the last minute, and because they delist traditional varieties of home-grown fruit.! Some growers say the only way to survive is to find alternative ways of marketing their apples SURVEY DETAILS All the responses relate to the 2001 crop.! Well over a third of growers (38/100) mailed responded to our survey [2] and replies are still coming in. Most of the respondents are based in Kent but we also received responses from Norfolk, Herefordshire, Gloucestershire, E Sussex, Essex and Cambridgeshire. All the respondents grow either dessert or culinary apples (or both) and 16 also grow pears. The size of orchards varied from about 4ha (10 acres) to over 40ha (100 acres) so our respondents include some large holdings. The average orchard size in England is 4.24ha and in Kent the average orchard size is 13.6ha (about 33 acres).! Supermarkets are the main sales outlet for most (27/35) of the respondents. Most of the respondents supply more than one supermarket. All the big six supermarkets are named. The most commonly named supermarkets were Tesco and Sainsbury s, reflecting their market share.! Wholesale markets are also important to most growers but a lower proportion of their crop is sold in this way than to supermarkets.! Processing is an important outlet for growers but in some cases this is due to fruit not meeting eating quality standards (see below).! Few growers supply farmers markets (6/35), farm shops (8/35), or local wholesale (9/35) and then only for a very small proportion of the crop. Two growers sold 10% and 15% respectively Page 2

of their fruit through a farm shop, but this was unusual. GOOD FRUIT REJECTED We asked growers what percentage of their crop met the supermarkets specifications. For dessert apple growers, only twelve managed to meet the supermarket specifications for 80% or more of their crop. Two growers found that none of their crop met the specifications, and for three others less than half their crop was accepted by the supermarkets. Over half of the respondents (21/35) said that some fruit was not even harvested, so it was simply wasted, in some cases left on the tree, left on the orchard floor or dumped. One grower had to waste half of the crop. However the results also indicate that where dessert apples are rejected they are often sold for processing at a lower price to the grower. Reasons for rejection also include too much colour, too little colour, size, shape and blemishes. Blemishes or russeting on otherwise sound fruit was the most common reason for apples being rejected last year, with nearly all growers mentioning this (32/35); it was also a common factor in pears being rejected. Minor skin blemishes should not be a problem as they will not be harmful to consumers, and russeting is natural in some varieties of apple. Size was rated as the most important reason for rejection by nine apple growers and mentioned by 19 others; it was also an important issue for pear growers. Most growers [28/35] also said that they had had apples rejected due to having too little colour but many (20/35) also had apples rejected for having too much colour! One grower told us that supermarkets can be unreasonable with fruit too red even though it is not overripe e.g. Gala, or requiring 100% Green Bramleys which naturally have some red in some years and situations. But consumers have been led to expect perfect looking fruit. One grower noted customers do expect a better quality with so much choice fruit must look good and very small, marked or other imperfect fruit is not acceptable. Another grower told us don t forget imports come in looking perfect so the UK crop has to match their standards. Almost all pear growers (14/16) had pears rejected due to the shape of the fruit. Shape was also a common reason for rejection of apples (27/35). Apples were also rejected due to hail damage, in one case a whole crop was rejected due to hail damage, despite the eating quality of the fruit not being affected. Even culinary fruit is rejected on appearance standards, as one grower put it: good culinary fruit is wasted for no good reason as the fruit in question will be peeled anyway! QUALITY OR COSMETICS? The supermarkets would claim that their specifications are in the interests of ensuring that they only sell good quality fruit to their customers. But the EU already sets out appearance standards for fruit and vegetables. These fall into Class 1 (higher appearance requirements) or Class 2. We asked growers whether the supermarket standards go beyond Class 1 and the majority of respondents confirmed that they do [29/35]. This seems unnecessary since Class 1 already sets out very strict standards for size (e.g. large apples must be at least 65mm diameter), colour, (e.g. red varieties must have at least half of the surface of the fruit red coloured) and blemishes (must not exceed 1cm squared). Class 2 is a more flexible standard but our survey confirmed that hardly any Class 2 fruit Page 3

was taken by the supermarkets (only 8 growers supplied any Class 2 fruit last year). We also asked growers whether the amount of fruit rejected by the supermarkets due to strict appearance standards has increased over the last five years. The majority of respondents [28/35] said that it has increased indicating that it is getting harder and harder for growers to meet the specifications. CHEMICAL COSMETICS? Supermarkets believe that cosmetic perfection is what their consumers want. But do consumers want this if the price to be paid may be more pesticide residues in the fruit? We asked growers if the supermarkets appearance standards required them to apply additional pesticides for cosmetic appearance, pest control and/or disease control. More than half of respondents [20/35] said that they have to apply more pesticides to meet the cosmetic standards of the supermarkets. About half said that they have to apply more pesticides for pest control and disease control due to supermarket requirements. SUPERMARKET PRACTICES We also asked growers about the reasons other than appearance why fruit may get wasted. The most common response was the lack of shelf space which supermarkets devote to UK fruit [26/35 respondents mentioned this]. Over half of respondents [20/35] said that fruit gets wasted because supermarkets delist particular varieties. One grower said that this was particularly the case for traditional varieties. Supermarkets also make last minute changes to the specifications (e.g. pressure or firmness of fruit), late changes to packing requirements, or cancel orders at the last minute. All this leads to wastage of fruit. IS THERE A FUTURE FOR ENGLISH APPLES AND PEARS? Orchards were once a key part of the traditional English landscape, but they are rapidly disappearing from our countryside. Over 60% of UK apple orchards and about 50% of pear orchards have been lost since 1970 and the decline is continuing. The amount of land under orchard production in England declined by 12.8% between 2000 and 2002 [DEFRA Agricultural and Horticultural Census June 5, 2002]. Apples are imported from as far away as New Zealand, and increasingly China, and are produced at high volumes convenient for the supermarkets. China produced over 24,000,000 tonnes of apples in 2001. Supermarkets can shop around the globe to find the lowest prices. One grower felt that global oversupply was a more important issue threatening growers than supermarket standards. However, when apples are rejected for cosmetic reasons growers are often forced to sell at a low price e.g for processing. One grower told us that although all the fruit was harvested, all non supermarket fruit was harvested and marketed at a financial loss. One grower also pointed out that the high standards required result in paying very high packaging charges. Some growers told us that local direct marketing is the only way forward, not selling to the supermarkets. One grower is trying to set up a local marketing initiative but it is difficult to get set up funding for such a venture even though it fits in with current Government policy. Another grower told us that the critical factor is to get local produce into local and regional stores. A regional counter, staffed by knowledgeable people would be a huge step forward to helping UK growers. Regrettably, Page 4

small shops are in decline. Currently supermarkets are too powerful and control the market for fresh fruit and veg. Alternative means of marketing are not yet well enough developed to offer growers a viable alternative. Unless the Government takes firm action to regulate the way in which supermarkets operate and puts significant resources into developing local food economies our apple and pear growers face an uncertain future. ACTION NEEDED Supermarkets should source more UK apples and more varieties when they are in season pay growers a fair price for their produce be more flexible about appearance standards. Government should support local food initiatives in particular to help growers set up direct marketing ventures regulate to stop unfair trading practices of the supermarkets set up an independent watchdog to protect both consumer and producer interests Consumers should buy UK apples when they are in season, and buy local and direct from the grower wherever possible. [1] Fruit coming into the UK is of export quality and so tends to be the best looking fruit of the crop from the exporting country. [2] Out of the 37 responses 3 were incomplete and so are not included in the results Page 5