NFU President Meurig Raymond today explained how retailers and the Government are crucial to ensuring we have a profitable and sustainable horticulture sector in the UK.

Speaking at the Fresh Produce Journal Live event Mr Raymond urged the Government to put productive agriculture and horticulture at the core of all its policies.

At the same time, Mr Raymond said more retailers should change the way they work with their suppliers - following an announcement earlier this year by supermarket giant Tesco that it would try to strengthen its relationships with fresh produce suppliers.

However, in February and March Tesco fired the opening salvos in a supermarket price war which attracted criticism from farm leaders. Although the price war most publicly revolved around cuts to milk prices, Tesco's first act in late February was to slash the prices of a range of fresh produce items (including onions, tomatoes, cucumbers and carrots). 

At the time, spokespeople for the supermarket said milk producers would not lose out as a result of its tactics, but, as farming commentators warned, other supermarkets following Tesco's lead did not offer such assurances for all their suppliers.

Mr Raymond said, "At our AGM in February, after almost two years of lobbying, Tesco became the first retailer to announce plans to develop contracts with its fresh produce suppliers. This is a massive milestone for the horticulture sector."

"However, despite the positive steps from some in the food chain, our leading supermarket chains remain ultra-competitive when it comes to footfall. What seems to be emerging is a renewed round of price cuts and promotions. My fear is that this materialises into downward pressure on margins across the UK supply chain."

 According to the NFU president, growers still feel they are in a "perilous" position, despite rising demand for the produce they offer. He said there is unexploited export potential for British produce and that the Government has a role in enabling productive horticulture to thrive.

"With the right policy solutions at an EU and UK Government level and some collaborative supply chain strategies, British growers will be able to grow, compete and above all be profitable producers of food to meet the ever increasing demands of out consumers," Mr Raymond added.