Executive Summary
In 1996, the fresh fruit and vegetable market in the UK was estimated at
£6.61bn, representing a 10.3% rise over 1995 at current prices. Part of
this increase in market value was due to price rises throughout the year,
although the all food index only showed a 5.5% rise in the price of food in
1996. Much of the gain, therefore, is due to volume growth in the sector.
The market for fresh fruit and vegetables includes: potatoes, but not processed
potatoes, potato products or crisps; fresh vegetables and salad, but not
processed or frozen vegetables, dried and processed pulses; and fresh fruit,
but not processed or dried fruit and nuts.
Imports constitute a significant part of the market for fruit. Lower cost
supplies from continental Europe, South Africa and elsewhere, together with
falling transportation costs and the increase in the number of varieties
offered from abroad, are putting pressure on domestic growers. In 1995, 2.4
million tonnes of fruit was imported into the UK, representing 88.9% of the
total market. In contrast, imports only account for 15.5% of the market for
fresh vegetables.
Climatic conditions are a major influencing factor in the market, governing
availability, prices and demand. Throughout the 1995/1996 growing season,
producers in many parts of the world were faced with unseasonal weather
conditions. In the UK, adverse conditions in the summer of 1995 affected the
potato crop, whilst the late spring of 1996 impacted on the production of
vegetables and salads.
Prices in the fresh produce market have also been affected by discounting at
major multiples, as supermarkets use the category to increase the average
footfall. In the latter part of 1996, the price of mushrooms fell to 56 pence a
pound, undermining efforts on the part of the Mushroom Bureau to increase value
sales through a television advertising campaign.
The future of the fresh produce market will be affected by a range of factors,
including the increasing dominance of the multiples, the success or failure of
promotional activity and European legislation. New legislation is attempting to
improve efficiency and product quality by encouraging growers to make better
use of umbrella organisations. Key Note estimates that the market for fruit and
vegetables will be worth £7.36bn in the year 2000, representing a 9.7%
increase in value between 1997 and 2000.
Twelfth Edition 1997
Edited by Phillippa Smith
ISBN 1-85765-676-8
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