Falling wholesale prices brought on by greater availability have helped reduce the overall price of The Grocer 33 fruit and veg basket, reports Richard Ford
This week's fruit and veg prices give the most positive outlook for shoppers so far this year. Of the 12 fruit and veg items drawn from The Grocer 33 pricing database, only two have increased in price since last month, and the 5.4% overall fall since last month suggests supermarkets are passing on falling wholesale prices.
The sharpest drop in price was in cucumbers, which fell 34.2% from £1.26 to 83p per whole fruit. This is a classic case of seasonal price variation, with a good British crop leading to greater domestic supply and lower wholesale prices, said Asda salad buyer Andy Wareham.
This followed a period of tight supply when the British crop was out of season and cucumbers were being sourced from Spain. Even Spanish supply was being stretched, however, due to the country's worst winter for 40 years.
After a dry winter with high levels of light, the British cucumber crop didn't disappoint when it came into season last month.
"The British crop came on very quickly," said Wareham. "When it started, high volumes were available from the beginning, which drove cost prices down very quickly. This meant retail prices also went down very quickly."
Iceberg lettuce had the second sharpest fall in price, down 13.7%. This was due to greater volumes being available, which allowed retailers to pass on cost savings.
"When we buy cheaper, we try and get the price down for customers as soon as possible," said Wareham. Asda had worked hard to keep the retail price of iceberg below £1, he added.
The biggest year-on-year increase was on broccoli, which rose by 41.8%, but is now falling.
"The major single reason for the increase has been the difference in exchange rates," said one supplier. "The euro is having a massive impact."
The cold weather in Spain, where a lot of broccoli is sourced, had also been a contributing factor.
The price of broccoli dipped 3.2% month-on-month last month, but a greater movement on price might be seen in June when the British broccoli season starts.
With banana prices falling 9.3%, one supplier accused retailers of having a short-sighted approach.
The retail price of bananas continues to fall even though the commodity price has risen by 34.6% year-on-year, to £1,246 per tonne, putting the banana industry under increasing pressure.
He claimed the banana industry had lost an estimated £460m in revenue since 2002 as banana prices were squeezed.
"If you take that sort of money out [of the supply chain], there's no investment going in," he added.
The only two items in the basket to have increased in price month-on-month were loose apples and loose mushrooms, which increased in price by 5.4% and 3.8% respectively.
The rise in the apple price - the sharpest month-on-month increase - was largely due to routine switching of varieties due to availability. As cheaper products sell out, more expensive varieties take their place. Where the same variety of apple was sourced, prices were unchanged month-on-month.
This week's fruit and veg prices give the most positive outlook for shoppers so far this year. Of the 12 fruit and veg items drawn from The Grocer 33 pricing database, only two have increased in price since last month, and the 5.4% overall fall since last month suggests supermarkets are passing on falling wholesale prices.
The sharpest drop in price was in cucumbers, which fell 34.2% from £1.26 to 83p per whole fruit. This is a classic case of seasonal price variation, with a good British crop leading to greater domestic supply and lower wholesale prices, said Asda salad buyer Andy Wareham.
This followed a period of tight supply when the British crop was out of season and cucumbers were being sourced from Spain. Even Spanish supply was being stretched, however, due to the country's worst winter for 40 years.
After a dry winter with high levels of light, the British cucumber crop didn't disappoint when it came into season last month.
"The British crop came on very quickly," said Wareham. "When it started, high volumes were available from the beginning, which drove cost prices down very quickly. This meant retail prices also went down very quickly."
Iceberg lettuce had the second sharpest fall in price, down 13.7%. This was due to greater volumes being available, which allowed retailers to pass on cost savings.
"When we buy cheaper, we try and get the price down for customers as soon as possible," said Wareham. Asda had worked hard to keep the retail price of iceberg below £1, he added.
The biggest year-on-year increase was on broccoli, which rose by 41.8%, but is now falling.
"The major single reason for the increase has been the difference in exchange rates," said one supplier. "The euro is having a massive impact."
The cold weather in Spain, where a lot of broccoli is sourced, had also been a contributing factor.
The price of broccoli dipped 3.2% month-on-month last month, but a greater movement on price might be seen in June when the British broccoli season starts.
With banana prices falling 9.3%, one supplier accused retailers of having a short-sighted approach.
The retail price of bananas continues to fall even though the commodity price has risen by 34.6% year-on-year, to £1,246 per tonne, putting the banana industry under increasing pressure.
He claimed the banana industry had lost an estimated £460m in revenue since 2002 as banana prices were squeezed.
"If you take that sort of money out [of the supply chain], there's no investment going in," he added.
The only two items in the basket to have increased in price month-on-month were loose apples and loose mushrooms, which increased in price by 5.4% and 3.8% respectively.
The rise in the apple price - the sharpest month-on-month increase - was largely due to routine switching of varieties due to availability. As cheaper products sell out, more expensive varieties take their place. Where the same variety of apple was sourced, prices were unchanged month-on-month.
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