New report underscores impact of skyrocketing production costs across the globe

The Global Coalition of Fresh Produce recent published the results of a survey conducted in spring 2023 that highlights the increasing costs of fruits and vegetable production around the world and their effect on the whole produce industry and end consumers.

“We conducted this global survey to shed light on the challenges experienced by the fresh produce supply chain worldwide,” Ron Lemaire, chair of the Global Coalition of Fresh Produce, said in a news release. “The narrative highlighted in this report will help the industry, its partners and all government levels understand the current impact of the increase in production costs and work together to address them.”

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The preliminary report is available on the Global Coalition of Fresh Produce website. The data collected will be used to develop a global and national perspective on the rising costs of production in North America, Europe, Africa, Oceania and South America, according to the release.

According to the coalition’s preliminary report:

• Globally, organizations within the supply side of the fresh produce industry experienced unprecedented cost increases during the COVID-19 pandemic regardless of the region of their operation.

• The cost increases were led by rises in fertilizer, construction, fuel, shipping and electricity prices. While most were able to increase their selling prices, it was not enough to overcome the increases in production and operating costs, leaving approximately 57% of the global industry selling at a loss or breaking even.

• Selling prices have gone up over the past two years by 11 % in Europe, 14 % in North America, 13% in Oceania, 23% in Africa and 13% in South America.

• Unfortunately, the increase in selling prices has not kept pace with high production and operating costs for most respondents.  

• The rise in costs for production and operations has affected respondents’ investments not only in capital and equipment, but also in innovation and expansion.

• Spiking costs have also affected strategic and operational choices; some operators are choosing to import from countries with lower shipping costs.