// BBC BUSINESS NEWS — FINANZA
Cider makers fear future for orchards as costs grow
Cider maker Matilda Temperley said the budget had been "disappointing"
Rising costs could force the cider industry to reduce their reliance on British-grown apples, according to several well-established businesses.
Higher alcohol duty, energy bills and packaging costs are making it harder to stay profitable, according to a producer in Somerset.
The government said it was supporting the sector by increasing the value of Small Producer Relief, which provides lower alcohol duty rates for some smaller and medium-sized producers.
Matilda Temperley, director of Burrow Hill farm near Martock, said it would be a "tragedy" to stop using its own apples due to climbing costs.
Temperley, whose farm has been growing apples for 300 years, said recent increases had added to pressures already facing the industry, adding at 6% alcohol, their traditional cider is taxed at a higher rate than mass produced cider.
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"By next February, we will have seen a 61% increase in tax on our standard 50cl bottles," Temperley claimed.
She welcomed the rise in Small Producers Relief but said other mounting costs outweighed it.
"We've got huge, energy costs, then almost a 90% increase in tax costs since 2020."