Low Profits, High Costs Equal Less from Britain's Farms
2023-04-11
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1Some of Britain's fruit growers are reducing their production because it is too costly to grow their crops.
2James Smith's family has grown apples on a farm in southeastern England since 1882.
3But now Smith is tearing down his fields of apple trees.
4Smith's farm is in Kent.
5The area became known as the "Garden of England" hundreds of years ago partly because of its apples.
6But the crop is no longer profitable for Smith.
7"I don't really want to get rid of all of my fruit, but I simply cannot see a way of overcoming all of the challenges," Smith said.
8Red apple sales to large food stores, or supermarkets, have not been profitable for years, he said.
9Weather and worker shortages are all problems.
10Inflation over the last year brought the situation to a crisis.
11For 2022's crop to break even, Smith said, he needed supermarkets to pay him 20 percent more than a year earlier for each wooden crate of apples.
12But supermarkets offered 0.8 percent more.
13The offer was the last in a series of unpleasant events for Smith.
14"If I stop growing fruit I can make money," he said, explaining his plans to diversify away from apples by turning to livestock, a vineyard and a farm shop.
15The government says Britain's fruit production has been decreasing since 2015.
16It was down 12 percent in 2021 from the year earlier.
17Britain imports about 85 percent of its fruit.
18Supermarkets say they need to hold prices down because of the increase in the general cost of living.
19Food price inflation stood at a record level of 17.5 percent, the most recent industry data for March suggests.
20The British Retail Consortium (BRC) is an industry group that represents supermarkets.
21The BRC said its members get the majority of their food from Britain.
22The BRC added that supermarkets know they need to pay farmers a price that will permit continued food production.
23BRC's Director of Food & Sustainability Andrew Opie said, "Given the pressure on British farmers at the moment, retailers are paying more for their produce."
24Smith said he has supplied all the big supermarkets over the last 10 years.
25But supermarkets do not pay enough, he noted.
26"Retailers are completely committed to making sure we can't make any sensible profit, not even in the good years," said Smith.
27By paying producers in the country so little, he believes retailers are setting up problems for the future.
28If other farmers like him stop producing, Britain will depend more on imports and possibly be hurt by supply shocks.
29For the farmers that continue, it will be a battle.
30Richard Napier is a professor in plant and agricultural biosciences at the University of Warwick.
31Napier said, "Clearly a grower with no margins hasn't got the profits to invest back in the business."
32In Kent, Smith is removing 80 percent of his orchards.
33Last year growing apples lost him $186,000.
34His loss would have been higher had it not been for other money he made from his land.
35Last harvest's Braeburn apples have not been sold yet.
36Apples sit in a warehouse where they are kept at between 0.5 and 1 degree Celsius.
37That results in big energy costs.
38Last October, Smith's monthly energy cost per kilowatt hour was 450 percent higher than in 2021.
39Labor costs increased 15 percent, and other materials used for apple farming increased in price as well.
40Smith said turning away from apple production was the best way to make sure his family's farm survives.
41He bought a juicing business for which he will continue to grow some apples.
42Pigs and chickens will be brought in.
43He also has a farm shop selling juice and other produce.
44In addition to these changes, Smith is planting a vineyard and is growing small amounts of cherries.
45Under Smith's plan, the garden lives on, but it is producing less food than it once did.
46I'm John Russell.
1Some of Britain's fruit growers are reducing their production because it is too costly to grow their crops. 2James Smith's family has grown apples on a farm in southeastern England since 1882. But now Smith is tearing down his fields of apple trees. 3Smith's farm is in Kent. The area became known as the "Garden of England" hundreds of years ago partly because of its apples. But the crop is no longer profitable for Smith. 4"I don't really want to get rid of all of my fruit, but I simply cannot see a way of overcoming all of the challenges," Smith said. 5Red apple sales to large food stores, or supermarkets, have not been profitable for years, he said. 6Weather and worker shortages are all problems. Inflation over the last year brought the situation to a crisis. 7For 2022's crop to break even, Smith said, he needed supermarkets to pay him 20 percent more than a year earlier for each wooden crate of apples. But supermarkets offered 0.8 percent more. 8The offer was the last in a series of unpleasant events for Smith. 9"If I stop growing fruit I can make money," he said, explaining his plans to diversify away from apples by turning to livestock, a vineyard and a farm shop. 10The government says Britain's fruit production has been decreasing since 2015. It was down 12 percent in 2021 from the year earlier. Britain imports about 85 percent of its fruit. 11Supermarkets say they need to hold prices down because of the increase in the general cost of living. Food price inflation stood at a record level of 17.5 percent, the most recent industry data for March suggests. 12The British Retail Consortium (BRC) is an industry group that represents supermarkets. The BRC said its members get the majority of their food from Britain. The BRC added that supermarkets know they need to pay farmers a price that will permit continued food production. 13BRC's Director of Food & Sustainability Andrew Opie said, "Given the pressure on British farmers at the moment, retailers are paying more for their produce." 14Smith said he has supplied all the big supermarkets over the last 10 years. But supermarkets do not pay enough, he noted. 15"Retailers are completely committed to making sure we can't make any sensible profit, not even in the good years," said Smith. 16By paying producers in the country so little, he believes retailers are setting up problems for the future. 17If other farmers like him stop producing, Britain will depend more on imports and possibly be hurt by supply shocks. 18For the farmers that continue, it will be a battle. 19Richard Napier is a professor in plant and agricultural biosciences at the University of Warwick. Napier said, "Clearly a grower with no margins hasn't got the profits to invest back in the business." 20In Kent, Smith is removing 80 percent of his orchards. Last year growing apples lost him $186,000. His loss would have been higher had it not been for other money he made from his land. 21Last harvest's Braeburn apples have not been sold yet. Apples sit in a warehouse where they are kept at between 0.5 and 1 degree Celsius. That results in big energy costs. 22Last October, Smith's monthly energy cost per kilowatt hour was 450 percent higher than in 2021. Labor costs increased 15 percent, and other materials used for apple farming increased in price as well. 23Smith said turning away from apple production was the best way to make sure his family's farm survives. 24He bought a juicing business for which he will continue to grow some apples. Pigs and chickens will be brought in. He also has a farm shop selling juice and other produce. 25In addition to these changes, Smith is planting a vineyard and is growing small amounts of cherries. 26Under Smith's plan, the garden lives on, but it is producing less food than it once did. 27I'm John Russell. 28Sarah Young reported on this story for Reuters. John Russell adapted it for VOA Learning English. 29____________________________________________________________________ 30Words in This Story 31get rid of -idiom to do something so that you are no longer affected by it 32challenge - n. a difficult task or problem 33break even - verb (phrasal) to reach the point where costs and income are equal and after which a profit can be made 34crate - n. a large wooden box used for moving things or storing things 35vineyard - n. a field where grapes are grown, usually for the purpose of producing wine 36sensible - adj. having or showing good judgment 37margin - n. an extra amount of something (such as time or space) that can be used if it is needed 38warehouse - n. a large building used for storing goods