“We conducted this survey as a follow-up to the survey conducted by the Coalition in 2023, when producers and traders the world over were facing unprecedented cost hikes,” said Ron Lemaire, Chairman of the Coalition and President of the Canadian Produce Marketing Association.

“The aim of this new survey was to understand how the situation has evolved over the past year.” According to the Coalition’s new report:

─ Despite some moderation of the cost rises experienced during and immediately after the COVID-19 pandemic, the industry continues to grapple with substantial cost increases across various inputs such as as construction materials (+56% year-on-year), fertilizers (+33%), fuel (+31%), machinery (+30%), and shipping services (+28%).

─ A majority of respondents have managed to increase their average selling prices compared to last year. However, most remain unable to fully offset rising costs for various reasons, including intense price competition in the fresh produce market, limited consumer purchasing power, and a lack of bargaining power with buyers. ─ 76% of operators are operating at a break even or profit, compared to 81% in 2023. “What is worrying,” added Ron Lemaire, “is that financial strain has affected operators’ ability to invest in critical areas like capital equipment, innovation, and expansion, which are all essential for long-term sustainability.” Looking ahead, the outlook remains daunting with ongoing geopolitical tensions, climate change impacts, and persistent inflationary pressures expected to prolong cost escalations.

As a result, a substantial proportion of respondents fear for the future economic viability of their operations, with nearly 70% considering the possibility of closure within the next two to three years. On the positive side, Ron Lemaire highlighted that “there is optimism within the market, and the industry has shown great resilience in adapting to immediate challenges.” “However,” he added, “the path to sustainable recovery and growth hinges on addressing the systemic issues driving cost increases, and ensuring adequate support for long-term investment and innovation.” The final report is now available on the Global Coalition of Fresh Produce website at https://producecoalition.net/publicati ons/. Source: Global Coalition of Fresh Produce, 19 September 2024