Rising costs in the horticulture sector will lead to a shortage of Irish vegetables on supermarket shelves this season, according to the Irish Farmers’ Association (IFA).

Chair of the IFA Horticulture Committee, Paul Brophy, who grows broccoli in Co. Kildare, explained that there has been a 40% decrease in the acreage of that crop alone due to growers exiting the sector.

The IFA chair has ruled out growing any more produce to meet supermarket demand: “If I keep filling those gaps, I keep feeding that beast that’s consuming me.”

Brophy explained that growers have scaled up and become more efficient in order to stay in business, however he noted that “scale becomes your enemy” when it becomes negative and growers lose money.

He predicted that the first shortages this season for Irish produce could come in glasshouse crops such as tomatoes and cucumbers, followed by iceberg lettuce, green cabbage, cauliflower and broccoli.

However, Brophy noted that the same will not be true of root crops which are not as labour intensive.

The IFA chair also warned that any adverse weather event such as the “Beast from the East” or a drought would also impact supply.

Rising horticulture costs

Brophy outlined that the horticulture sector is a very input and labour intensive sector and the spend on fertiliser would be considerably higher than that of a ceral grower.

The cost of energy, fuel and packaging has all risen for growers; to produce a crop this year will cost them between 15-20% more.

“It’s the lack of recognition that inflation has not just crept in, but galloped into all our businesses. We’re just inundated with cost increases that are outside our control,” the IFA chair said.

Brophy feels that retailers are aware of the inflationary pressures on the sector but have a “willful blindness” to it as they want to keep their price points in order to attract consumers into their stores.

“They know that when they [consumers] come in to buy the cheap vegetables that they will pick up the sales on the pastas, coffees and the products they are getting margins on. They are using the produce as a loss leader,” he added.

Although consumers may wish to support producers, Brophy said that is difficult when they are presented with such low prices in the supermarkets.

He said that if the new food ombudsman does not stop “predatory pricing” and “below cost selling” there will be no Irish horticulture industry in five or ten years’ time.

Brophy said that securing and affording labour is also a major issue for the sector, accounting for 40% of costs.

Sucession

The IFA chair also voiced concerns to Agriland about attracting more growers to the sector.

“The risk is too high. The inputs in a crop of vegetables are eye-watering and entry levels have got so high with the demanding quality standards supermarkets have put in place as a prerequisite to supply them.

“No new person is going to get into it. The only chance is a next generation coming into it. But the next generation don’t want the long, hard hours we’ve had and there’s lots of easier jobs out there. I three children – not one of them is interested in going into what I’m doing,” Brophy explained.