Fruit & veg importers have downplayed the likely impact on retail prices of a planned minimum wage hike in Morocco, after it sparked concerns that retailers and suppliers would soon have to pay more for Moroccan produce.
Morocco is a major exporter of fruit and veg to the UK and the country competes fiercely for UK market share with Spain and Egypt.
Last month, the Moroccan government agreed for the minimum wage of private-sector workers to go up 10% in July from 2,110 Moroccan dirhams (£163) at the moment to 2,321 (£180.37) with a further 5% increase to follow at the beginning of 2012.
Labour is a key cost factor in the fresh produce sector and the news left retailers wondering what the impact on prices would be. But one major fruit importer insisted the wage increase was unlikely to affect prices paid by UK importers and retailers in the short term, if at all.
"Just because input costs have gone up, it doesn't mean it will filter through to pricing. It doesn't work that way," he insisted.
The Fresh Produce Consortium also downplayed the changes, claiming the industry had been aware of the possibility of local wages going up, and that any additional costs would have a negligible impact.
"The Moroccan industry has a sophisticated and highly efficient supply chain infrastructure. Therefore, any additional costs will be modest and more than offset by their unique seasonality and excellent product range," said FPC CEO Nigel Jenney.
Moroccan fresh produce, such as tomatoes, citrus fruits and soft fruits are sold in most of the UK multiples when in season.
One source welcomed the wage increase for ensuring "workers and their families have a decent standard of living".
In 2009, Moroccan exports to the UK totalled 77,843 tonnes [FPC/Eurostat] and the UK is a key export growth market for the country's agri-food products.
Morocco is a major exporter of fruit and veg to the UK and the country competes fiercely for UK market share with Spain and Egypt.
Last month, the Moroccan government agreed for the minimum wage of private-sector workers to go up 10% in July from 2,110 Moroccan dirhams (£163) at the moment to 2,321 (£180.37) with a further 5% increase to follow at the beginning of 2012.
Labour is a key cost factor in the fresh produce sector and the news left retailers wondering what the impact on prices would be. But one major fruit importer insisted the wage increase was unlikely to affect prices paid by UK importers and retailers in the short term, if at all.
"Just because input costs have gone up, it doesn't mean it will filter through to pricing. It doesn't work that way," he insisted.
The Fresh Produce Consortium also downplayed the changes, claiming the industry had been aware of the possibility of local wages going up, and that any additional costs would have a negligible impact.
"The Moroccan industry has a sophisticated and highly efficient supply chain infrastructure. Therefore, any additional costs will be modest and more than offset by their unique seasonality and excellent product range," said FPC CEO Nigel Jenney.
Moroccan fresh produce, such as tomatoes, citrus fruits and soft fruits are sold in most of the UK multiples when in season.
One source welcomed the wage increase for ensuring "workers and their families have a decent standard of living".
In 2009, Moroccan exports to the UK totalled 77,843 tonnes [FPC/Eurostat] and the UK is a key export growth market for the country's agri-food products.
No comments yet