Ohio suppliers cope with inflation

Inflation is still in evidence throughout the Ohio produce industry, but fresh fruit and vegetable suppliers say some costs seem to be trending downward.

The price of fuel is lower than it was a year ago, “but it’s still up there,” said Ken Holthouse, general manager and partner at Doug Walcher Farms, North Fairfield, Ohio.

Electricity rates are up significantly this year, he said, but paper prices are down, which means boxes cost less.

Although the costs of all inputs “are pretty much up” compared to a couple of years ago, some are down from 2022, agreed Chad Buurma, president of Willard, Ohio-based Buurma Farms. Last year, costs were at an all-time high for things like boxes, chemicals and fuels, he said.

“That’s come off some, and that certainly helped a little bit,” Buurma said.

“I think [inflation] has kind of leveled off,” agreed Kirk Holthouse, director of sales and purchasing for Willard-based Holthouse Farms of Ohio Inc.

Related: How produce shoppers said they're responding to inflation

But one area where costs have not subsided is labor.

“Labor is a huge issue,” Buurma said. “It’s driving costs up.”

The rate for H-2A farmworkers rose 8.1% this year, Ken Holthouse said.

“AEWR — Adverse Effect Wage Rate — increases percentagewise quite a bit every year,” he said. “That’s tough.”

Holthouse Farms of Ohio also uses H-2A workers, Kirk Holthouse said.

“The labor rate is continuing to rise,” he said. “That’s very costly, but the workers are outstanding.”

Whatever the source, suppliers don’t think inflation has caused a sales drop at retail.

“I don’t see a major change in buying patterns,” Buurma said. “It’s pretty steady.”

Consumers still value fresh produce, Kirk Holthouse said.

“They’re probably being a little wiser,” he said. “They’re not wasting money, but they always have to eat.”