THE Island’s food-supply chain is ‘on a knife-edge’ with growers continuing to feel the squeeze as costs skyrocket, according to the Jersey Farmers’ Union.
Oil prices have almost doubled, the cost of fertiliser has tripled in three years and moving crops from the farm to the supermarket shelf has become more expensive, partly due to the war in Ukraine, JFU president Peter Le Maistre said.
But he added retailers were reluctant to raise their prices to reflect spiralling production costs, due to pressure from the cost-of-living crisis affecting all consumers.
‘No one wants the prices to go up in the shops because everyone is under such huge pressure at the moment. I think the retailers are saying they can’t put prices up because people have less money in their pockets, but growers are saying if you don’t put prices up we will stop producing.’
Former farmer Deputy Steve Luce agreed that ‘shortages of fresh produce have become more frequent of late’, creating gaps on supermarket shelves in Jersey, but said the problem was not solely down to winter weather affecting freight imports.
He said: ‘The situation is made worse by the lack of fresh, locally-grown vegetables. We have traditionally had Jersey farming companies that specialised in production for local consumption, but unfortunately the last of those left the market earlier this year.’
The Island’s largest vegetable producer, Woodside Farms, ended its 135-year business, which was producing up to 80% of the Island’s fresh vegetables, in August this year.
Deputy Luce said: ‘We need to recognise that Jersey farmers can successfully grow just about any crop. What those farmers cannot do is produce those crops more cheaply than their competitors in the UK, or the wider EU.
‘They can no longer make a profit, or even break even, growing specifically for the local market.
Deputy Luce added: ‘We just do not enjoy the massive economies of scale that are available elsewhere.
‘Local produce will therefore always be more expensive, or (if sold more cheaply) be marketed at a loss to the producer.
‘This is regrettable but a fact of life.’
Mr Le Maistre echoed Deputy Luce’s thoughts, adding: ‘Things are coming home to roost now. As a farmer you can’t keep producing something if you are losing money. We’ve been operating on very tight margins for five-to-six years now.
‘Everything is a bit of a gamble because you are not going to grow something unless you know you will sell it and you can make a profit. Things are on a knife-edge. If you don’t put the prices up the confidence isn’t there to grow it.’
Farmers plan a year ahead when deciding which crops to grow and, like those in the UK and the rest of Europe, many are calculating whether they can still afford to plant a crop to harvest next year when costs are so high.
Deputy Luce also called for more government support.
He explained: ‘Successive governments have been quick to raise the minimum wage, but have not come up with solutions to help those businesses most affected by these increases in production costs.
‘Despite being warned, lack of action by government has resulted in the loss of our last large-scale market vegetable producer.
‘Given the other issues discussed [as a result of the war in Ukraine], there is very little likelihood of anyone starting a new local vegetable production business here on the Island.’
Deputy Luce added: ‘There’s lots that can be done, and it’s not simple, but at the end of the day this issue needs to be addressed by government, and quickly.’
