While AI and AR are dominating the tech world, the timeless necessity of fruits and vegetables remains constant. The UK has a rich history of fruit and vegetable trading, with entire communities built around bustling market squares.
Although the landscape has evolved over time, with increased competition from international producers leading to a decline in value, there are still numerous opportunities within the industry. Businesses have thrived by offering organic fruit and vegetable boxes for local delivery, crafting smoothies, and operating farm shops.
Consider the surge in popularity of veg boxes. Prior to the pandemic, the demand for delivered grocery boxes was minimal. However, between March and April 2020, sales of veg boxes skyrocketed by 111%, and interest has only continued to grow since then, with 85% of veg box schemes having waitlists. Similarly, the appeal of vegan plant-based boxes has seen a significant increase, with Gousto reporting a doubling in orders over four years, now accounting for a quarter of their deliveries.
To thrive in this industry, creativity is key. The escalating cost of land due to housing developments presents a challenge, but if you have access to land, it could be a viable venture to explore.
Let’s delve deeper into the details of starting a fruit and veg business.
- Why Start a Fruit and Veg Business?
- Fruit and Veg Production Trends
- Business Opportunities for Growing Your Own Produce
- Success Stories in the Fruit and Veg Business
- Insights from Small Business Experts
Why Start a Fruit and Veg Business?
A recent survey by Lancaster University revealed that the UK could potentially increase fruit and vegetable production by up to eight times by utilizing urban and underused spaces. If harnessed effectively, the UK could fulfill up to 40% of its fruit and veg consumption, a significant portion of which is currently imported.
Currently, the UK falls short of meeting the recommended five-a-day fruit and veg intake, with around half of vegetable consumption and 80% of fruit being imported. This, coupled with a growing preference for organic, locally sourced produce, presents a lucrative opportunity for aspiring fruit and veg producers.
Fruit and Veg Production Trends
The organic produce sector has experienced substantial growth and resilience over the past decade. Fruit production in the UK has nearly doubled since 2010. The import value of fresh fruit stands at £3.9 billion, while exports amount to £64 million. UK consumers spend £10.5 billion annually on fruit and £15.8 billion on vegetables.
Organic fruit and veg sales have been on the rise for 11 consecutive years, with organic purchases accounting for a significant portion of supermarket transactions. In 2022, £3.1 billion was spent on organic products, representing a 1.6% increase. This growth has contributed to a 25.4% surge in organic food and drink sales over the past three years.
Business Model Opportunities for Fruit and Veg Producers
To establish yourself as an organic farmer, you must attain certification, a process that may take up to two years if the land has not been previously used for organic farming. Certification involves audits by government-backed bodies like the Soil Association, assessing adherence to specified standards and principles.
Certification costs vary based on land size and activities, starting from £475 annually for small-scale growers. Financial assistance, such as the Fruit and Vegetables Aid Scheme, can help offset these costs. To qualify for the scheme, businesses must have a minimum of five grower members, generate an annual turnover of €1 million, and practice environmentally sustainable cultivation methods.
Once certified, you can sell your produce to local restaurants, farmers’ markets, farm shops, cafes, festivals, and bars. Certain crops like asparagus, herbs, chillies, and rocket can be lucrative, while staples like tomatoes, peppers, and cucumbers are reliable earners due to high demand and prices.
Exploring online platforms like BigBarn and local food markets can expand your reach. Additionally, consider value-added products like pesto, smoothies, and chutneys, or diversify into honey production by keeping bees.
An emerging trend worth exploring is the production of organic plant-based protein powders for drinks, catering to the growing market for protein supplements projected to reach $36.7 billion by 2028.
Successful Fruit and Veg Producers
Notable small businesses that have capitalized on fruit and veg production include Abel & Cole and Riverford. Abel & Cole offer customizable fruit and veg boxes for weekly delivery, emphasizing organic, seasonal, and sustainable produce. Riverford, based in Devon, has experienced substantial growth, delivering over 65,000 boxes weekly.
Insights from Small Business Owners
Nick McCordall of Slipstream Organics in Cheltenham emphasizes the importance of collaboration with suppliers to curate weekly veg boxes. He advises against starting from scratch due to soaring land prices and the lengthy organic certification process, suggesting partnerships with colleges or family farms.
McCordall highlights the success of a London farm shop that tapped into the demand for organic, locally sourced produce, showcasing the potential of catering to urban consumers willing to pay a premium for quality goods. While there is a market for organic produce, navigating the challenges of cost, competition, and certification requires strategic planning and financial support.