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Gloucestershire Business News

Empty shelves: will the issue get worse?

Food supply issues in shops across Gloucestershire could become a longer-term issue for 2023 retailing, with some key industry leaders are now urgently calling for the government to kickstart a 'dig for Britain' policy.

Farmer's Weekly has reported that with major retailers rationing fruit and vegetables purchases, poor harvests in Spain and northern Africa are the chief cause for dwindling supplies. The British Retail Consortium says the shortages could, it expects, last a few weeks, until the UK growing season begins, when retailers can replenish stocks.

But critics are pointing to plentiful produce elsewhere in Europe and insisting post-Brexit supply agreements, which render the UK less profitable for suppliers, are a significant factor in shortages.

Leaning less on southern Europe and the EU zone, the UK has shifted to greater fresh produce reliance on Morocco and North Africa with the launch of a direct shipping route, bypassing the EU, in 2021. Subsequent UK international trade data shows the UK sourced £403.7m worth of fruit & veg from Morocco in 2022 – a rise of 166% on the £157.7m imported through 2019.

But according to an interview with an anonymous CEO in the Grocer, reliance on these supply options has resulted in "a greater exposure to recent events". Prices inside "the EU cocoon" were higher, but supplies had been "much less hard hit" by current supply chain issues.

Meanwhile Fresh Produce Consortium CEO Nigel Jenney has claimed the UK government's border strategy is "not fit for purpose and will drive huge delays and huge additional costs for consumers, beyond where we are today."

Talking to the Grocer, Jenney said Brexit may not be seen as the driving cause of shortages, but that "what is driven by the government is the industry uncertainty, not providing clarity to what the process will be and how it will operate, and what the costs of that process will be."

In the wake of sustained media coverage, the NFU has launched a growth strategy for fruit and veg production and supply chain distribution. Its 'building blocks' plan sets out 10 policies to help the UK growing sector, promote long-term growth and ensuring ongoing fresh produce on supermarket shelves. In includes a boosting of sustainable energy supplies, an improvement in access to skilled labour, investments in productivity and greater supply-chain fairness.

Minette Batters, NFU president, said: "The consequences of undervaluing growers can be seen on supermarket shelves right now. Shelves are empty. This is a reality we've been warning government about for many months.

"Without urgent action there are real risks that empty shelves may become more commonplace as British horticulture businesses struggle with unprecedented inflationary pressures, most notably on energy and labour costs."

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