Supermarkets will have to rely more heavily on imports if growers are not given support with soaring electricity bills, the industry has warned.
The government, last week, announced that the agricultural sector would not be included in the British Industrial Competitiveness Scheme (BICS), which is set to cut electricity bills by up to 25% for a wide range of businesses.
The decision to exclude growers made “little sense”, said Ali Capper, executive chair of British Apples & Pears.
She warned: “Excluding agriculture from this support scheme puts UK growers at a clear disadvantage against overseas competitors and risks further undermining investment in domestic food production.”
Capper explained that apple and pear growers used energy-intensive cold storage to keep British fruit on shelf for as much of the year as possible but “without them, consumers would see a much shorter British season and far greater reliance on imports”.
“Today, industrial electricity prices are around double the EU median,” she added.
“At a time when government talks about food security and reducing reliance on imports, it makes little sense to exclude one of the sectors most exposed to high electricity costs.”
Last time energy costs soared for food producers, many growers ended their season early, leading to shortages on shelf at the major retailers of core lines.
The exclusion of the sector was described as “deeply frustrating” by NFU president Tom Bradshaw.
“Parts of the horticulture sector, for example, are incredibly energy-intensive growing tomatoes, cucumbers and peppers in heated glasshouses, and are grappling with the same global price volatility as any factory – yet are being left to face these surging costs alone,” he said.
It comes on top of growers not being included in the Energy Intensive Industries scheme.
This latest blow, Bradshaw warned, was the government “effectively putting a handbrake on our investment and our ability to produce a supply of sustainable, high-quality food”.
The British Tomato Growers’ Association also expressed “disappointment” at the decision.
“Our industry is already under intense pressure from unprecedented rises in standing charges, and exclusion from this support only deepens the strain on growers who are working hard to maintain food production and protect UK supply chains,” said a spokeswoman.
The industry has called for the government to reconsider and ensure that energy-intensive parts of agriculture are included in future support schemes.
Capper said: “Supporting domestic production is not just about backing growers – it is about food security, consumer choice and the long-term resilience of the UK food supply chain.”
The government said it was “closely monitoring energy costs and ministers continue to engage with industry during this uncertain period globally”.
“We have set out new plans to end the unfair way international gas prices push up electricity prices, better protecting businesses,” said the government spokesperson. “We are already backing our food and drink industry with £11.8 billion of support for sustainable farming and food production and cutting tariffs through our trade deals that open up opportunities for exporters in the world’s fastest-growing markets.”
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