Cider makers fear future for orchards as costs grow
Summary
Cider producers in Somerset say rising alcohol duty, energy bills, packaging costs and wage-related costs are squeezing profits. Some warn that larger producers may use fewer British-grown apples, while the government says changes to Small Producer Relief and support for pubs and bars will help the sector.Key Facts
- Matilda Temperley of Burrow Hill farm said rising costs could make it harder for the business to keep using its own apples.
- Temperley said the farm's traditional cider is taxed at a higher rate than mass-produced cider and that tax on its standard 50cl bottles would rise by 61% by February.
- Temperley welcomed an increase in Small Producer Relief but said other costs outweighed the benefit.
- Wealth Club analyst Isaac Stell said higher employer National Insurance contributions and minimum wages could add to producer costs and reach pubs, restaurants and consumers.
- Matthew Showering said his drinks business had grown from 80 employees to about 350 in ten years.
- Tricky's Cider owner Matt Gillett said his small operation would qualify for Small Producer Relief but would receive limited benefit because alcohol duty is a substantial monthly cost.
- Gillett said he would not import apple pulp or concentrate to reduce costs and would continue using fruit from local orchards.
- The Treasury said the Budget increased the value of Small Producer Relief and included support for pubs and bars, which are customers for cider producers.
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