The true cost of low prices

We have spent some time considering the current market, and it will be interesting to see how the cost structure of fruit and vegetables in supermarkets will vary in the future.

In Europe, consumers are used to paying higher prices for their food, making it closer to the true market value, thus providing a better return for their farmers. However, British supermarkets have consistently kept prices lower, which puts abnormal pressure on the market, an issue that has been magnified over the last few weeks. Existing producers are therefore faced with meager returns, which are barely enough to keep them financially viable. These low returns could deter new and innovative entrepreneurs from entering the British farming industry. A lack of fresh ideas for boosting cost and production efficiency and exceeding consumer demands would be detrimental to the industry's future success.

It is also essential to consider that most people are currently experiencing much higher general costs than usual, meaning lower-cost options will be popular with the public and politicians. Nevertheless, heightened production costs continue to prevent farmers from meeting the increased consumer demand. Therefore, the UK domestic market will be forced to spend more importing fresh produce from countries still willing to supply the demanding British supermarkets.