UK fresh produce prices will continue to rise according to the results of a survey published this week by market research group Key Note. The report reveals that the UK market for fresh fruit and vegetables, which was worth an estimated £9.52billion in 2010, is set to continue growing, with the market expected to reach £11.93 billion by 2015.

Although this will be welcomed by retailers and may have positive implications for producers, the report reveals that the price of staple foods will continue to rise for consumers. Britain, as well as many other countries, has been severely affected by rising inflation. This has caused a drastic rise in food prices, particularly of fruit and vegetables in the past 5 years. The Key Note report points out that the price inflation is a problem as there has been significant pressure on producers to keep prices as low as possible.

It reveals that large retailers, such as the supermarkets that dominate grocery sales in the UK, which are highly competitive in terms of pricing and are thus able to purchase produce at the cheapest possible prices in order to outprice their competitors are able to mitigate costs to the customer in spite of the spike in food-price inflation seen in recent years. Farmers in the UK have said that rising raw materials costs and low farm-gate prices are squeezing their margins and that it is often they who are paying the price for the savings seen at the check-out.

Nevertheless, the 'Fruit and Vegetables Market report 2011' predicts that population increase, continued rising inflation and climate change will mean fresh produce becomes even more expensive as food supplies and growing seasons could be affected. Furthermore, the fact that 90 per cent of fruit consumed in the UK is imported will have implications in terms of price, unless consumer habits change.

The report does, however, reveal that sectors which were severely affected by the recession, such as organic produce, will benefit from a return to popularity before 2015, although it predicts that increased consumption of premium and organic foods could result in knock-on price increases, with the higher retail price of such foods causing that of other fruit and vegetables to rise even further.