Following a pandemic, rising inflation and soaring energy bills, people are now walking into shops to find empty shelves.
Supermarkets have seen supplies of tomatoes and other fresh produce, leaving shelves empty in one of the world’s most advanced economies.
Naturally it has left people asking why, with many pinning the blame on Brexit and rising energy bills, with poor conditions in food producing countries triggering shortages.
But for one Hull fruit and vegetables wholesaler, the seeds of the crisis lay within the way the industry works and unrealistic expectations of low prices from supermarkets.
Rob Darcy told LDRS bad growing conditions had tipped the scales in growers’ favour, meaning they can now demand much more for their product with supermarkets unwilling to pay.
‘The British public have been led to believe that fruit and vegetables cost next to nothing’
The director of Dennis Butler Ltd said factors like energy prices, climate change and uncertainty in the industry meant shortages may be around for some time.
The director said: “We’ve got plenty of fruit and vegetables here like tomatoes, cucumbers, lettuce.
“The difference for us is that we’re willing to pay a premium for it and our suppliers are greengrocers, market traders and other independents, we don’t work with supermarkets.
“At the moment everyone’s having to pay a premium to get fruit and vegetables.
“What you find is that most places on the continent have fruit and vegetables.
“The difference isn’t so much because of Brexit, which in effect just leaves us with more paper work to deal with, it’s that the British public have been led to believe that fruit and vegetables cost next to nothing.
Oranges at the Dennis Butler fruit and vegetable wholesaler in Hull. (Photo: Hull Live/Rich Addison via LDRS)
“Supermarkets sell fruits and vegetables as a loss leader, people may remember seeing parsnips being sold in them for 19p at Christmas, but you can’t it at that price and make a profit.
“The reason why the supermarkets can’t get the vegetables now is because they they’re not willing to pay the prices growers can demand at the moment because of the conditions elsewhere.
“The worst thing for a supermarket is having to pay more than what they’re used to paying from their suppliers.
“In this country the problem is that we don’t have any small growers left anymore, we used to have hundreds.
“All that’s left now is a few huge growers who have to sell to supermarkets who have driven prices down.
“That’s where you get shortages from ultimately, because they’re false prices.”
People used to buying at ‘false prices’
Mr Darcy said UK consumers had gotten used to paying unrealistically low prices compared to buyers on the continent.
The director said: “If you go on holiday to somewhere like Spain and you go to a supermarket, you’ll notice that the fruit and vegetables cost a lot more.
“People there are used to paying more for it, even though they’re the places that are growing most of it.
“That situation’s brought them on now because with carrots for example, prices have gone up now because of bad growing conditions.
“So the big growers start to react to that by raising their prices.
“They can’t say they’ll just grow more, if they haven’t grown a particular crop in three or four years then they have to buy it all again which is a considerable investment.
“The crops aren’t going to just magic themselves up out of the ground.
Workers in the Dennis Butler fruit and vegetable wholesaler in Hull. (Photo: Hull Live/Rich Addison via LDRS)
“Then you’ve got the rising energy prices which is also a factor, in a country like The Netherlands they’re growing fruit and vegetables at this time of year but it’s in heated greenhouses which they increasingly can’t afford.
“I think if the public knew how little fruit and vegetables are being sold for there would be more support for British growers.
“It’s the independents who are sticking their necks on the line with this now, they’ve had to put their prices up but they can’t profit from it because it cost them so much to get the goods.
“If a box of tomatoes costs sellers £18 say, then they have to put up their prices too to cover it.
“They then have to pay wages, lighting, rent, a lot of things come out of the sale price before they can make a profit.
“They’re essentially breaking even to provide a public service at this point.
“At the moment a lot of fresh produce is brought here from abroad.
“It comes from Spain and Morocco mostly, they’re the biggest two producers.
“Their growing season comes to an end just as the English season starts.
“They start growing in the south first because it’s warmer down there, then it works its way up through places like Lincolnshire and further into the north.
“But this year there’s a shortage of English produce to start with because of things like fertiliser costs going up, as well as energy costs, so there’s not as much going into the ground.
‘No one can predict the future’
Mr Darcy said he believed the shortages could be long lasting.
The director said: “The English season doesn’t really come on until April, so you’re talking four to six weeks from now.
“And the disruption could go on much further into the long term because of things like climate change.
“We’re getting warm weather when it’s supposed to be cold, rain when it’s supposed to be dry, it plays havoc with growing produce.
“It only takes a small amount of less produce to create shortages because it’s that much in demand.
“There isn’t the volume of it there for supermarkets to buy because they’re buying vastly more in quantity than the independents are.
“It’s a very hard time to be in farming at the moment because of all this uncertainty, will they grow more when they don’t know how much more fertiliser’s going to cost?
“No one can predict the future.
“As far as the cost of living goes, from the point of view of sellers people only have so much money in their pockets, but food is important.
“But the problem is up until now more and more supermarkets have been allowed to open at a cost to independents because people thought the answer was their cheaply sold food.”
Consumer confidence dropped marginally in the last quarter of 2024, shows a recent industry report, suggesting concerns around disposable income and prices of essentials remain though consumer confidence is expected to recover in 2025.
According to the Deloitte consumer tracker released today (20), this is the first time since 2022 that confidence has stalled, although confidence varied in different areas examined by the survey.
Consumer sentiment towards personal debt rose by six percentage points, although this was not enough to compensate for falls in other measures. There was a four percentage point drop in confidence about household disposable income and a 14 percentage point drop in confidence about the UK economy.
Almost half (42 per cent) of consumers said they spent more on Christmas this year, but most (54 per cent) put this down to higher prices.
The Deloitte survey is based on responses from 3,200 UK consumers aged over 18 and was taken between 3 and 6 January.
Céline Fenech, consumer insight lead at Deloitte, said, “While many consumers appear to be feeling better about paying debts or borrowing following the cuts to interest rates, concerns around disposable income and prices of essentials remain.
“Consumers continue to look for value and make compromises following a once-in-a-generation surge in costs that has diminished consumers’ spending power.
“Many consumers continue to compare today’s higher prices to those of pre-pandemic, regardless of the rate of inflation falling.”
Fenech added that despite the fall in confidence overall, Deloitte expected consumer confidence to recover in 2025.
Ian Stewart, chief economist at Deloitte, said, “Despite a challenging start to the year, we expect to see growth coming back over the summer, with interest rate cuts, rising real incomes and buoyant government spending helping drive the recovery.
“For 2025 as a whole, we expect UK GDP growth to come in at around 1 per cent, a rather better outcome than last year.”
Among the survey’s findings were that two in five consumers (40 per cent) said they did their Christmas shopping before December, which could have been a tactic to spread the cost of the festive season.
Over a third agreed that they bought more gifts (37 per cent) on discount and more food (43 per cent) using promotions and loyalty cards discounts.
About 52 per cent of those surveyed greed they were generally more frugal and careful this Christmas, while half (50 per cent) agreed they consciously cut down on any luxuries.
Oliver Vernon-Harcourt, head of retail at Deloitte, said, “As many grapple with an inflation hangover, consumers likely need more time to digest the volatility and uncertainty of the last few years.
“Consumer recovery this year will depend on what happens with inflation, especially in the more essential categories like food.
“With our research showing that 80 per cent of consumers still expect prices to go up further in 2025, consumer demand is likely to remain subdued while things settle in the first half of the year.
“Beyond that, with factors such as the rise in the minimum living wage, more public spending, easing monetary and fiscal policies – combined with consumer confidence hopefully continuing to recover – we should see demand improving.”
A new convenience store is set to open in a month despite opposition from people in the area. This had been fuelled by concerns it could impact a similar store nearby as well as public safety despite assurances it would be “very well run.”
The current vacant premises at 86 Woodchurch Lane in Prenton was previously a hairdressers called Oscars Hairshop, but in a month it will become Tranmere’s Bodega. A licence to sell alcohol there was granted by Wirral Council at a licensing meeting on 15 January despite 133 people signing a petition against an application.
Ian Rushton from JL Licensing represented the applicant Saranjah Baskaran said it would be a general convenience store with alcohol being part of the overall business. He said Ms Baskaran already had a licence in Wallasey and experience in other areas meaning she was “more than capable of running the store well.”
He said the shop would be “very well run” and had tried to contact people living in the area to try and give reassurance. Mr Rushton said it was a brand new store, adding: “There seems to be a fear this shop will cause or increase antisocial behaviour if the application was granted today. There are clearly antisocial behaviour problems in many areas, it’s a general issue in our communities.”
However Sonya Bateman raised concerns about the impact on her children and said she was representing the people who signed the petition, adding: “Living nearby I can attest that even a small gathering outside similar premises cause significant noise and disruption to residents.”
She said the petition showed widespread opposition in the nearby area arguing they felt it would be harmful to the area, adding: “It will significantly disrupt the community jeopardising the peace and safety of residents.”
However it was confirmed the petition was linked to a nearby corner store and there was a feeling a new shop would be competition and take business away from that store with one person signing it who lived a mile away. Mrs Bateman said she had had no issues or reason to complain about the store that was currently open.
In reaching their decision, Cllr Andrew Hodson said the committee had been told people’s concerns were “based on fear and apprehension, not evidence that the granting of the application would undermine the licensing objectives.” While they considered the representations sent to them, councillors pointed out no responsible authorities had raised concerns including Merseyside Police and any decision must be evidence based.
Councillors allowed the off license to open Sunday to Saturday 7am to 11pm selling alcohol during these times and its owners said it expected to open in about a month. Deliveries cannot be made between 5pm and 8am.
(Local Democracy Reporting Service)
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Co-op on Friday (17) launched its first new store of 2025 in Salford Quays as the convenience retailer embarks on plans to accelerate convenience growth.
The new Co-op convenience store is located in commercial retail space on the ground floor of the Anchorage Gateway, Salford Quays - a 29-story residential development located close to the area’s media, education and cultural hubs.
The launch of the new Salford Quays store comes after the retailer revealed ambitions to open up to 75 new stores this year, consisting of both Co-op estate stores and Franchise stores.
In addition, Co-op has plans for around 80 further stores to undertake major refurbishments in 2025 - transforming the stores to serve and support their communities and to maximise the potential of Co-op’s existing portfolio of properties.
The Salford Quays store offers an extensive range of fresh, healthy produce; food-to-go and meal deals, Fairtrade products, an in store bakery, hot food and award winning wines. Supporting UK farmers all of Co-op’s fresh meat – including in its ready meals, pies and sandwiches - is 100 per cent British.
Member prices create additional value for Co-op’s member-owners, with lower prices on the products shoppers buy most.
Added services include Costa Coffee Express, payment services via PayPoint and parcel collection and returns through an InPost locker.
The store will act as a fulfilment hub for Co-op’s leading Quick Commerce operation, with the online delivery of groceries becoming available shortly after launch via Co-op’s partners Just Eat, Uber Eats and Deliveroo. Orders are picked fresh in the local store, and delivered quickly and conveniently to homes and offices locally.
Soft plastic recycling is also available in the store, enabling consumers to return harder to recycle materials such as crisp packets and bread bags, lids from ready meals, biscuit wrappers and, pet food pouches.
Rachel Hargreaves, Director of Property, Development and Estates, Co-op, said, “I am delighted to see Co-op’s first new store of 2025 launch. We are working to acquire new retail space, both freehold and leasehold, and to maximise the potential of our existing estate as part of our convenience growth ambitions.
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Simon Williams, Co-op’s Salford Quays Store Manager, said, “The whole team is excited to launch Co-op’s newest store, and Co-op’s first new store of the year.
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