“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
The International Longshoremen’s Association, the largest North...
Last week, the South African Government took a historic step at the...
The Australian Government has secured another win for Australia’s...
Lamentamos informar que don Gabriel Jorge Fonzo Schlesinger,...
Las lleva a cabo el Senasa en la provincia de Entre Ríos con el...
El productor Jorge Pazos visitó los estudios de la televisión...
El eje del encuentro será compartir herramientas para potenciar el...