UK farming industry could be 'crushed' with SAW scheme still not in place

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  1. Despite repeated warnings from farmers, UK government yet to implement a new labor plan
  2. Over 98 percent of the UK’s seasonal workforce are from the EU
  3. 'A [berry] punnet that costs £2 today to be £3 post-Brexit' unless a solution is found
  4. Near-full employment means UK workers can't fill seasonal jobs

The UK’s berry industry could be “crushed” because of a lack of EU workers post Brexit, according to the former British Summer Fruits (BSF) chairman, who represented 97 percent of the UK berry industry.

Ex BSF chairman Laurence Olins said the government need a global employment scheme in place by September 2018 at “the very latest”, to allow the industry to recruit for the 2019 season.

However, as of April 2018 there is no such scheme in place, and BSF’s new chairman, Nick Marston, says the UK government has given no firm sign of introducing one. There is already a significant shortage of staff and the concern is that will be worse [next year],” he told WikiTribune.

Chairman of British Summer Fruits, Nick Marston
Chairman of British Summer Fruits, Nick Marston (CC BY-SA 4.0)

Starting in 1945, the Seasonal Agricultural Workers Scheme (SAWS) was the UK’s longest running migration scheme (academic study) and allowed European migrants to fill seasonal jobs, such as picking berries and other horticultural work on farms. However, the scheme stopped pre-Brexit in 2013despite warnings it would lead to a labor shortage several years later from the government’s own Migration Advisory Committee, as well as the National Farmers Union (NFU) and the British Growers Association.

Then the UK voted for Brexit, leaving its farmers’ futures, as well as migrants’ ability to come work on their farms, more uncertain. While the UK remains in the EU until the end of March 2019 EU citizens can come to the UK freely to travel, live and work under the principle of free movement, but once the UK leaves what happens next is all up for negotiation. 

With more than 98 per cent of the UK’s 80,000 seasonal workforce coming from the EU, British horticulture relies on free movement for EU workers (Financial Times). And it’s not only horticulture, with around 69 percent of staff working on UK meat plant floors coming from the EU27 countries (the period between 2007–2013 when the EU had 27 member countries), according to the British Meat Processors Association. It represents about 80 percent of the meat processed in the UK.

Before the UK has even left the EU, the NFU’s labor providers survey reported there was an average 11 percent shortfall in seasonal workers for horticultural production in 2017.

Prior to the EU referendum the UK was a very attractive place for seasonal workers, NFU Horticultural Board chair, Ali Capper, told WikiTribune.

However, she says there’s been a drop in the number of EU workers coming to the UK due to various factors: the decline in the pound sterling since the UK voted to leave the EU (The Guardian), workers no longer feeling valued, and improving economies in the rest of Europe.

Ali Capper (CC BY-SA 4.0 Credit: NFU)
NFU Horticultural Board chair Ali Capper, on her own farm (CC BY-SA 4.0 Credit: NFU)

Capper’s claims are backed up by a BSF report which says the UK parliament’s Environment, Food and Rural Affairs Committee was told that Romanian workers were increasingly turning down UK work offers because they no longer felt welcome. The level of hate crimes reported one month after the EU referendum was also 41 percent higher than the same month from the previous year.  Most (79 percent) of these were motivated by race hate.

“Because of my role with the NFU, I made a mistake of allowing one of my long-standing members of staff from Poland to be interviewed by a couple of the national media. And he had some very unpleasant phone calls afterwards,” Capper says.

On her own farm, Capper has a team of 20 Polish workers who want to return for more work. However, she says political uncertainty means she can’t even guarantee whether they will be able to; this lack of confidence means growers are already disinvesting in the UK.

Capper says she believes that when the electorate voted for Brexit, “They didn’t vote against immigration … they voted for control of immigration.”

Why should the UK consumer care?

The BSF’s chairman Nick Marston says the prospect of berry prices increasing is “absolutely inevitable” if there is a shortage of labor. “A punnet that costs £2 today will be £3 post-Brexit, if there is no scheme in place.”

Other European countries already have permit schemes to allow people to come ??? from outside the EU. This is on top of access to European labor, which the UK may no longer have in the future – depending on the UK-EU deal Prime Minister Theresa May negotiates.

Price hikes wouldn’t be limited to fruit and vegetable produce. CEO of the British Meat Processors Association, Nick Allen, told WikiTribune that Brexit could lead to more farmers going out of business. If this happens retailers will just import from somewhere else and the cost of meat, which has the highest WTO [World Trade Organization] tariffs, will go up “dramatically”, he says.

Chief Executive of the British Meat Packing Association, Nick Allen
Chief executive of the British Meat Packing Association, Nick Allen (WikiTribune/Francis Augusto CC BY-SA 4.0)

Even under a Free Trade Agreement (FTA) with the EU, as well as a WTO scenario, UK food prices would rise, according to the NFU’s 2016 report.

If no deal is struck with the European Union, meat imported and exported between the EU and UK would be subject to WTO rules, meaning tariffs of around 50 percent, (Internal Market and Consumer Protection report).

Allen wonders if the government will see food go short and expensive, or just “quietly turn a blind eye” to meat coming in with a lower standard. “Essentially we’d be exporting our welfare concerns, sort of shutting our eyes to it really … An animal is an animal, it shouldn’t matter where in the world it is. It should still be treated to a high welfare standard.”

What about new FTA opportunities? About 80 percent of the UK’s agricultural exports go to the EU, according to a government report, and almost all of the UK’s trade is with countries with which the EU has already negotiated a free trade agreement (government report).

Why not fill the jobs with British people?

The UK’s employment rate is the highest it has been since 1975, according to the ONS. More than 75 percent of the population, or 32 million people, were in work,when???? and unemployment stood at 4.2 percent (economists usually estimate full employment at around 4 percent). So there is not a big cohort looking for seasonal work.

The BMPA’s Nick Allen says it’s a similar situation for the UK’s meat industry. “A lot of the areas where our [meat] plants are have got 2 percent unemployment, while even most economists would say 5 percent unemployment is pretty much full employment.” 

For every 10 British employees who come to work in an abattoir, Allen says only one will stay. According to a BMPA report, many meat processors undertake recruitment drives via local job centers or school career programs with very little success. “Of people who say they are interested in working in a plant, few will turn up as agreed, very few will agree to start work and UK nationals failing to complete even a week’s work are depressingly familiar,” the report says. It also says that since Brexit, Eville and Jones, which provides most of the official veterinarians in abattoirs, has had to advertise for the first time, which is concerning as over 90 percent of UK official vets are from the EU27.

Is automation an option?

Allen says a lot of its members are looking at mechanization, but that is not a complete solution. “The classic this time of year is pigs in blankets – little sausages wrapped in bacon. You try doing that with a machine.”

In the soft fruit industry, robotic picking is not an option for fruits such as raspberries, blackberries and blueberries, according to a BSF report. It says “extensive use on a commercial scale seems unlikely before 2020″ which would be too late, with the UK leaving the EU in 2019.

Chief Executive of the British Growers Association, Jack Ward
Chief executive of the British Growers Association, Jack Ward (CC BY-SA 4.0)

The CEO of the British Growers Association, Jack Ward, doesn’t think the shortfall in agricultural jobs can be replaced by automation in the short term.  We’re probably looking at a five to 10 year horizon before we get commercially viable options,” he says.

Will SAWS happen?

BSF’s Nick Marston says the UK’s fruit industry will already be short of labor in 2018.

“Until I hear something positive from number 10 Downing Street and the Home Office, who are the people who are the arbiters of this, I’m suffering from a fairly severe lack of confidence.

“If no scheme is put in place, the berry industry, effectively, will cease to exist.”

And the UK’s meat industry isn’t seasonal, so even if a Seasonal Agricultural Workers Scheme (SAWS) or a similar one is reinstated, this wouldn’t fully solve the problem.

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