A drive to increase home produce and reduce our reliance on foreign imports is putting food production in the UK under the spotlight. With escalating energy and transport costs, there are changes British producers can make to their property to ensure the most competitive returns and increase the overall value of the site. Here we focus on how tomato growers can boost profits.

The majority of tomatoes in Britain are grown in glasshouses – therefore growers with the most energy-efficient (and cost-effective) buildings tend to run the most profitable businesses. Cost-saving technology is key and commercial tomato growers are investing in Combined Heat and Power (CHP) equipment. These electricity generating stations produce heat as a by-product which can be used to regulate temperatures in nursery glasshouses, with any surplus available to the National Grid. The end result sees energy expenditure reduced which in turn increases profit and the overall value of the property portfolio.

However, such changes can prove costly to install and therefore require careful consideration. Growers who choose not to fit their property with new equipment can continue to trade profitably, but with increased energy costs eating into profits, the overall value of their glasshouses can be lower in comparison.

There are other changes to tomato production that present ripe opportunities for landlords and property owners. With the successful use of LED lighting in tomato growing and other food production, the use of underground tunnels and indoor spaces is being trialled by some companies – for example ‘Growing Underground’ has begun growing herbs in a disused Second World War bunker in London. If successful, similar methods could be relied on to convert redundant space into valuable growing areas.

Extra production space could be exactly what we need if numbers from The British Tomato Grower’s Association are anything to go on. Their latest report states British tomato production totals circa 75,000 metric tonnes each year, equating to about a fifth of the total volume of tomatoes sold in the country. Consumption is estimated at around 500,000 tonnes leaving over 400,000 tonnes of imported fresh tomatoes required to match this demand. This equates to a retail value of British tomato production estimated at around £175 million from a total retail market of about £625 million.

Food for thought.

Further information

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