Norfolk pea growers stuck in contract limbo

A number of Norfolk vegetable farmers are becoming increasingly frustrated at not being able to secure pea growing contracts this season, linked to an ongoing dispute between a local vegetable processor, an engineering inspection company and NFU Mutual.

Normally, at this time of year, pea growers would have contracts in place to give them the security to go ahead and source the seed and fertiliser for this year’s crop of vining peas.

See also: Home-grown pulse incentive required to replace soya imports

However, local vegetable processor AP East Anglia (APEA), which offers the contracts, is caught up in a long-running claim issue with its insurer, NFU Mutual, following a mechanical breakdown at its factory in 2024.

APEA says this has put the business under considerable financial stress and has left it unable to offer contracts to farmers for the coming season.

Steam peeler

The issue stems back to 2023 when the engineering company – which has to remain nameless for legal reasons – carried out the annual inspection of a steam peeler within the APEA factory to ensure it was fit for purpose.

This was a policy option under APEA’s cover with NFU Mutual.

However, the steam peeler subsequently blew up, despite having been given a clean bill of health, causing extensive damage.

Following the incident, the company contacted NFU Mutual pursuing a claim for damages and compensation.

However, NFU Mutual is adamant that the engineering company involved is an independent company, so any claim – which APEA puts at around £2m – is a civil matter related to negligence, not an insurance issue. 

A spokesman for NFU Mutual said: “NFU Mutual is not the alleged negligent party and has no culpability for the incident, and therefore is not the correct compensator for the claim.”

However, APEA boss Neil Cranston argues that all insurance policies were taken out between his company and NFU Mutual and that all premiums for those policies were made to NFU Mutual, not the engineering inspection company.

“In general terms NFU Mutual has passed the responsibility of the claim to the external agent,” said Mr Cranston.

“We don’t accept that, as it is NFU Mutual who is our insurance agent, who we pay thousands of pounds in premiums to each year.

“It is up to them to sort this out once and for all.”

Local farmers

It is understood that around 30 local farmers are feeling the impact.

Alistair Cargill, who runs Pitt Farms near Norwich, had allocated 100ha to grow peas this season, contracted to APEA.

He says time is running out to get the agreements in place.

Alistair Cargill of Pitt Farms © Supplied by Alistair Cargill

While he could grow a different spring crop, the loss of pea sales would amount to about £300,000, plus the loss of valuable nutrients returned to the soil by pulse crops.

Mr Cargill said: “If the issue isn’t resolved soon, pea growers will have to change their plans last minute and plant something else, which isn’t ideal for any of us.”

NFU Mutual says it understands this has been a difficult time for APEA and its growers, “which is  why we have been proactive in seeking to advance the claim and mediate between parties”.

“This includes spending a significant sum on forensic engineering and accountancy reports, which ordinarily would be costs incurred by the claimant, and convening ‘all-party without prejudice’ meetings in order resolve the dispute as quickly as possible.”