The cost of a carrot

If we're paying farmers less than the cost of production for their produce, can we genuinely claim to have a functioning and healthy food industry?

Major UK retailers recently celebrated slashing the cost of their Fruits and Vegetables in the run-up to Easter celebrations. Tesco was quoted as selling carrots for 15p per bag, and other retailers soon followed as they all scrambled to gain a share of spend over the Bank holiday weekend. Whilst customers are getting good value in their basket, we are missing the true cost of these deals in our food industry.

As UK consumers, we contribute a staggering ￡120 billion to the food industry annually. Yet, the actual cost of our food is significantly higher. For every ￡1 we spend at the checkout, an additional ￡1 is incurred and passed on to us, not through our wallets but through tax, lost income due to poor health, and the price of climate change. These are the often overlooked hidden costs of our food choices.

The recent focus on Ultra-processed foods has increased scrutiny of the food we eat, the places it comes from, and the people who make it. While the debate is divisive and nuanced, it's placed focus in the right place. Our consumers are thinking harder about food quality, so as an industry, we must keep up.

The growing call for wholesale structural reform of our industry is a testament to the need for a revolution in how we produce, buy, and consume food. However, the first crucial step in this journey is to ensure that farmers and primary producers receive fair prices for their hard work. A fair price, by definition, is one that is 'mutually acceptable to both the buyer and the seller, often reflecting the current market value'.

In the UK, 12 companies control around 95% of food retail. They have become custodians of our supply chain. Supermarkets make shopping efficient, give us choices, and allow us to experience and enjoy various foods, but their competitive nature can force a race to the bottom. If this results in farmers being paid less than the cost of production for their produce, then something is wrong.

But should we have more expensive food?

Yes, but only for the right reasons. Despite the rising use of food banks, it's still the case that cheaper food undermines our supply chain and harms everyone. As Denise Bentley says, "We have to stop throwing food at poverty". Our food industry needs to pivot and prioritise the healthiest food option as the most affordable—for producers, retailers, and consumers.

As well as the impact on health, our planet and producers - what about innovation? There are more than 8,000 Food and Drink SMEs in the UK, and they make up the bulk of our market; as the industry squeezes prices down, how will new entrants to the market ever keep up cut through the noise? Of course, people are getting it right; look at Riverford and Oddbox as a starting point. The UK rightly has a strong position globally as a melting pot of food innovation, but without reform to our industry, that cannot continue.

So, the next time you buy produce at knockdown prices, ask yourself: Do we have a functioning and healthy food industry?