UK should ‘cherish’ turnips, suggests Thérèse Coffey, as food shortages could last a month – as it happened

And here’s a video clip of the turnip comments:

1:09

Time to recap….

Thérèse Coffey, Defra secretary of state, told MPs the UK’s fruit and vegetable shortages could last another two to four weeks.

Coffey also argued that Britons should ‘cherish the specialisms’ for food in the UK, saying that without food imports “A lot of people would be eating turnips right now” rather than thinking of lettuce and tomatoes.

A Downing Street spokesman said the environment secretary was explaining the importance of “celebrating” British produce, saying:

“We don’t believe it is for us to tell people what they should or shouldn’t buy – that is entirely a matter for them.

“I think what the Secretary of State was doing was setting out the importance of celebrating the produce that we grow here in the UK but, ultimately, it is for individuals to decide what food they wish to buy.”

Tesco, Aldi, Asda and Morrisons are all now rationing certain fresh produce lines as shortages of salad crops hit the UK.

The British Tomato Growers Association (BTGA) has predicted there will be “significant volumes” of British tomatoes on supermarket shelves by the end of March.

But Philip Pearson, development director at the UK’s largest tomato producer, has pointed out that the government was warned there would be empty shelves without more support.

Pearson told the Guardian:

“I don’t want to sound ‘I told you so,’ as that doesn’t help anybody, but we are where we were worried we would end up.”

Justin King, the former CEO of Sainsbury’s, argued that Britain had brought the problem on itself – telling Radio 4’s Today Programme that Brexit had disrupted the agricultural sector.

King said:

There is a genuine shortage but we did rather bring this problem upon ourselves.

“We could have chosen to subsidise the energy this winter as we have done for other industries.”

City analyst Clive Black told clients that the UK food system has been hindered by “abject policy failure and inept policy implementation” by the government.

The Liberal Democrats have called for an urgent COBRA meeting, together with food experts, supermarkets and farmers, to hammer out a solution to this crisis.

Over in Spain, growers have said ffluctuating temperatures, increased production costs and the knock-on effects of Brexit are all contributing to the UK’s vegetable shortages.

In other news, Bank of England policymaker Catherine Mann has warned it is too early to stop raising UK interest rates.

In a speech at the Resolution Foundation’s headquarters in London, Mann argued that high interest rates were needed to prevent inflation becoming embedded in wages and prices. She warned this could lead to “extended persistence of inflation into this year and the next”.

The EU’s executive body has banned its thousands of staff from using TikTok over cybersecurity concerns, a decision the Chinese-owned social video app has criticised as “misguided” and based on “fundamental misconceptions”.

In the energy world, the head of the International Energy Agency has warned that the battle between Europe and Russia is not over, despite a sharp drop in wholesale gas prices that has eased concerns over high bills and blackouts.

Ministers are under pressure to cut subsidies to the operator of Britain’s biggest power station after it reported an 84% increase in annual profits, helped by high electricity prices.

Weapons maker BAE Systems has also profited from the Ukraine conflict. It predicted higher earnings this year after posting record new orders in 2022, as Western governments ramp up military spending.

Shares in Rolls-Royce have surged 22% today, after its new boss launched a sweeping review of the aircraft engine maker, pledging that there is “much more” to come after last year beat expectations.

Britain’s energy regulator, Ofgem, is facing a boardroom overhaul amid stinging criticism over alleged failures in its oversight of the prepayment scandal.

Heathrow has hit out at the regulator accusing it of “getting it wrong” on its pricing while its airline customers such as British Airways “charge what they like” and make “huge profits” on high fares.

New analysis has revealed that women “work for free for nearly two months” a year, due to a 15% gender pay gap that widens “dramatically” after women have children.

And on the economic front, US economic growth has been revised lower due to weaker consumer spending. US GDP grew by 2.7% per year in Q4 2022, not the 2.9% first estimated.

Downing Street has said Thérèse Coffey was setting out the importance of “celebrating” British produce, in response to her remarks about ‘cherishing’ turnips amid food shortages.

No 10 also rejected suggestions Brexit is to blame for the shortages.

A Downing Street spokesman said:

We don’t believe it is for us to tell people what they should or shouldn’t buy – that is entirely a matter for them.

I think what the secretary of state was doing was setting out the importance of celebrating the produce that we grow here in the UK but, ultimately, it is for individuals to decide what food they wish to buy.

Asked if Brexit has had an impact on shortages, he said:

The industry and retailers themselves have spoken about the reason for some of the supply issues we are facing, notably poor weather in certain parts of southern Europe and north Africa.

23 Feb 202311.16 EST

Why Britain’s biggest tomato farmer left some greenhouses empty

Joanna Partridge

Multiple glasshouses owned by tomato grower APS Group were left empty last year, for the first time in the business’s 80-year history, my colleague Joanna Partridge reported this morning.

“We did say, as an industry, last year: ‘If you don’t support us through the winter you will have empty shelves,’” Pearson says.

“Government didn’t listen, our customers didn’t listen, nobody listened.

“I don’t want to sound ‘I told you so,’ as that doesn’t help anybody, but we are where we were worried we would end up.”

The combination of soaring energy bills to provide artificial light to help the plants grow, especially during the winter, combined with associated surges in the price of fertiliser and the cost of packaging prompted many British producers and their European counterparts to take the decision to plant fewer crops this winter.

Here’s the full piece:

During her Commons appearance, Thérèse Coffey also suggested that the fixed-price contracts which supermarkets typically agree with farmers could be a factor behind shortages.

European supermarkets are more likely to have ‘variable price contracts’, she said, which offer flexibility.

Those UK contracts may not have adjusted to the higher costs which farmers face to heat greenhouses to produce salad vegetables, for example, in unseasonal times.

Jack Ward, CEO of the British Growers Association, has said that Brexit is “a bit of a smokescreen here,” compared to rising costs, saying.

“The UK food retailing system is probably the most competitive anywhere in the world. It’s about what growers get back in return.”

Bloomberg has the details:

Poor harvests in Spain and Morocco are still part of the story, but a key issue is the impact of inflation on growers in the UK, according to Ward. He said that greenhouses normally used to grow tomatoes, peppers and cucumbers were left vacant because it hasn’t been economical to pay the higher energy costs.

Higher labor costs have also made it more expensive to grow salad items, and it’s risky as the produce is prone to pests and diseases, said Ward. In some cases growers are choosing to plant wheat instead as it’s less costly and pays more.

The supply of tomatoes and cucumbers is expected to fall to the lowest level since records began in 1985, according to the NFU.

Here’s Liberal Democrat leader Ed Davey on Thérèse Coffey’s comments about cherishing our domestic food specialisms today:

Four new charges have been unsealed against Sam Bankman-Fried, accused of fraud in last year’s implosion of the FTX cryptocurrency exchange.

A new superseding indictment against FTX cryptocurrency exchange founder Bankman-Fried containing 12 charges has been unsealed in a Manhattan federal court, Reuters reports.

The new indictment, which was filed on Wednesday, says:

“Exploiting the trust that FTX customers placed in him and his exchange, Bankman-Fried stole FTX customer deposits, and used billions of dollars in stolen funds for a variety of purposes.”

In December, Bankman-Fried was charged with eight counts of fraud, money laundering and other charges over the collapse of the now-bankrupt exchange. He has pleaded not guilty.

Prosecutors say Bankman-Fried used the stolen customer funds to plug losses at Alameda Research, his hedge fund.

Alameda’s former chief executive, Caroline Ellison, and a former FTX executive, Gary Wang, have both pleaded guilty to fraud charges and agreed to cooperate with the investigation.

Last month, Bankman-Fried insisted that he didn’t steal funds or stash billions away.

Here’s a video clip of Thérèse Coffey, Defra secretary of state, telling MPs that British people should “cherish the specialisms” in UK food production, as they struggle to buy salad vegetables in the current shortages.

As covered earlier, Coffey’s point is that consumers want a ‘year-round choice’, a demand which supermarkets and growers round the world try to meet.

Without that, we would be on a winter diet of turnips, not being able to enjoy tomatoes (as we used to be able to, anyway).

As Coffey puts it… the UK should “cherish the specialisms” it has in food, adding that a “lot of people would be eating turnips right now” under a seasonal food model – rather than thinking about lettuce, tomatoes and similar produce, which are now rationed at several supermarkets.

Asked whether the supermarkets imported too many products, and Britons should shift to seasonal eating, Coffey replies:

“It’s important to make sure that we cherish the specialisms that we have in this country.

“A lot of people would be eating turnips right now rather than thinking necessarily about aspects of lettuce and tomatoes and similar, but I’m conscious that consumers want a year-round choice and that is what our supermarkets, food producers and growers around the world try to satisfy.”

And as flagged earlier, Coffey predicted the current shortages could last from two to four weeks.

In the economic world, the US grew a little slower than first thought at the end of last year.

US GDP has been revised down, to show the economy grew at an annual rate of 2.7% in October-December, down from a first estimate of 2.9% annualised growth.

That’s effectively a quarterly growth rate of almost 0.7% – still better than the UK, which stagnated in Q4 2022.

The data shows that consumer spending was lower than first thought, while core inflation pressures remain strong.

Defra secretary of state Theresa Coffey has suggested that UK shoppers would be eating turnips this winter, not hoping to buy tomatoes, without overseas imports.

Coffey was asked by Conservative MP Selaine Saxby whether she agreed that supermarkets import “far too many” products, and the UK should be eating more seasonably to support British farmers.

Coffey said that it was important to “cherish the specialisms that we have in this country”, and told MPs:

“A lot of people would be eating turnips right now rather than thinking necessarily about aspects of lettuce, and tomatoes and similar.

But I’m conscious that consumers want a year-round choice and that is what our supermarkets, food producers and growers around the world try to satisfy.”

This may be a gift to the Daily Star, who could potentially reprise their efforts with Liz Truss and a lettuce…. perhaps with turnip-lover Baldrick and a cunning plan…..

Sky News are reporting that the government is preparing to overhaul the board of energy regulator Ofgem, by replacing a slate of directors this year.

The energy regulator has faced intense criticism over its handling of the prepayment meters scandal, on top of the collapse of a swathe of the energy supply chain industry in 2021 and 2022.

And with several executives’ terms expiring this year, or having expired already, Grant Shapps – the Secretary of State for the Department for Energy Security and Net Zero – is apparently pushing for new blood.

Here’s the story:

Sky News understands that the Department for Energy Security and Net Zero (ESNZ) has begun recruiting a new chair for the watchdog, as well as four non-executive board members.

The Ofgem board currently comprises Professor Martin Cave, who will step down as chairman in October when his five-year term expires, a slate of independent directors and Jonathan Brearley, its chief executive.

Two non-executives who have already departed will be replaced, while two more - Lynne Embleton and John Crackett - have terms expiring later this year.

A further two board members are due to serve until 2025.

An Ofgem spokesperson said its chairman “will not be seeking reappointment for the role”.

More here.

Households are heading for a “crunch point” in April as energy bill support is set to fade away and the moratorium on force-fitting prepayment meters ends, MPs have been warned this morning.

Citizens Advice said households are going to come under increased pressure, with averge costs set to rise during the summer when energy use is lower.

It comes as household bills are set to soar by around £500 on average, hitting £3,000 per year for the typical home from April.

Bills are currently set at £2,500 for the average home – and households have also been getting vouchers for £400 spread over six months.

Meanwhile, energy suppliers have been banned from installing prepayment energy meters under warrant after concerns about their behaviour were raised. But that ban will come to an end in a little over a month.

Andy Manning, principal economic regulation specialist at Citizens Advice, said:

“We’ve got the moratorium on forced installations of prepayment meters at the moment, but that’s due to expire at the end of March. The end of March is also when the support schemes fall away, so it seems there’s a real crunch point when we get to April 1.”

Speaking to MPs on the Public Accounts Committee, he said the situation is “of concern”.

View image in fullscreen

UK tomato growers have reassured customers that there should be “significant volumes” of British tomatoes on supermarket shelves by the end of March, as retailers impose buying limits to cope with a shortage.

The British Tomato Growers Association (BTGA) said shortages are mainly down to a lack of imports but the local growing season is due to begin soon.

The BTGA said in a statement:

“Many people have commented on the current lack of fresh tomatoes in some supermarket stores.

“Whilst this is predominantly a consequence of the lack of imported product at this time of year, the British season will soon begin and we expect significant volumes of British tomatoes on shelves by the end of March and into April 2023.

“The British tomato season runs from the end of March until November each year.”

The head of Spain’s largest farming association has pointed to Brexit and its impact on transportation, bureaucracy and border controls as the underlying cause of the UK salad crisis, saying there has been no major drop in production among his members.

Alfonso Gálvez – who serves as general secretary of Asaja, which represents farmers in the Murcia region, said he was puzzled by media reports of weather-induced shortages.

“I’ve seen these articles but I don’t understand why they’re talking about shortages here in Spain,” he said, adding:

“Things are normal here so far this season so I don’t know if it’s more a problem of UK logistics since the Brexit regulations came into effect.

There’s enough produce to supply the market and the vegetable season is happening pretty normally.”

While he acknowledged that rising costs had led to a drop in production for some growers – and frosts had affected some artichoke and lettuce crops – Gálvez said those issues were not serious or widespread enough to have significantly reduced market supplies.

The UK shortages, he suggested, may have more to do with bureaucracy and logistics than the weather.

Here’s the full story, by our correspondent in Madrid, Sam Jones:

British businesses’ and households’ inflation expectations for the year ahead remain too high for the Bank of England to be confident about inflation returning swiftly to its 2% target, Bank of England policymaker Catherine Mann has warned.

In a Q&A session after her speech this morning:

“We have an inflation problem. That’s the bottom line.”

Inflation was 10.1% in January, more than five times the Bank’s target of 2% per year.

Having spoken about the continued need for higher interest rates, Mann added:

“I don’t think we are in a restrictive stance, particularly.”

UK retailers expect sales volumes to fall next month, after holding steady in February, as rising cost of living eats away at disposable incomes.

The Confederation of British Industry’s (CBI) distributive trades index has risen to +2 this month from -23 in January. Economists had predicted a smaller recovery, to -13.

But a measure of expected sales in the month ahead fell to -18 from -15.

Martin Sartorius, CBI principal economist, says:

“Whilst retail sales volumes were largely unchanged in the year to February and slightly above seasonal norms, firms remain pessimistic about their business outlook and are bracing themselves for yet another fall in sales next month”