The latest Rural Payments Ageny (RPA) review of producer organisations (POs) has yielded some surprising, and for many fresh produce growers concerned shocking, results. The RPA review derecognised far more organisations than was previously expected. image expired

Of the 45 producer organisations under review as many as 23 of them are thought to have been derecognised and suspended, although the RPA has yet to confirm this. The affected producer organisations have been told they must wait a week for a letter explaining why they have been derecognised.

Keith Leddington-Hill of Cottage Mushrooms, one of the derecognised organisations, explained to Horticulture Week on Friday (12th August), "Until people receive their letter they will not know exactly where they stand. The whole thing has left producer organisations in limbo - it's been badly handled."

Derecognised producers were informed by phone on Wednesday 3rd August, though no further explanation was given and producers were told they must wait a week before receiving the details by post. The RPA has offered the organisations that failed their inspections the opportunity to meet with the agency to discuss the findings and plead their case.

The agency said in a statement, "The RPA is offering to meet producer organisations to discuss the findings in more detail. Payments to compliant organisations for 2010 annual claims and 2011 in-year requests will be made, subject to the usual checks.

"Supplementary guidance on key recognition criteria was produced jointly by Defra, the RPA and industry representatives earlier this year. All producer organisations were issued with a copy in March 2011. We will make a further announcement on the status of producer organisations after individual meetings are concluded."

NFU chief horticulture adviser Hayley Campbell-Gibbons said on Friday (12th August), "We are still awaiting confirmation from the RPA as to exactly how many Producer Oorganisations have been unsuccessful in this process, but having spoken to a large number of growers it looks like the casualty rate is near 50%.

"Producer organisations are clearly appalled at the decision and are anxious to understand why they are left in limbo. Many have put a lot of work into the review and are shocked at the outcome.

"The PO scheme is highly valued by growers and the NFU and we want to do everything we can to ensure that in future the scheme operates smoothly and effectively, so that it can continue its contribution to ensuring an efficient and competitive British horticulture industry. To this end we will try to help rebuild relationships between POs and the RPA once the dust has settled on the current situation."

Further clarification of the organisations affected by the RPA's decision and the reasoning behind the suspensions is expected this week as producers receive their letters.