Data backs claim – it’s never been harder

By QFVG CEO Rachel Chambers

When anyone asks me what I believe is the main issue in horticulture, the answer I have been giving all year is: “Within the last three years, input costs have risen between 30 and 65 percent and productivity has decreased by a third. What business can survive those numbers?”?

This data is a result of numerous conversations with growers across multiple commodities and so far, I haven’t found one grower who falls outside these parameters. However, when asked for the report which consolidates this data as truth, I’ve had nothing but anecdotal evidence to substantiate our claims – until now.??

Last week the Global Coalition of Fresh Produce released their ‘Survey into Global production and operation costs for prices for fruit and vegetables.’?

A summary of what they found globally included: rising prices for everything from fertiliser to packaging have added significantly to overall production costs. Labour shortages that existed pre-covid have been exacerbated across the supply chain from farm to retail. Logistics such as trucking have become increasingly expensive and difficult to find, congestion and delays at ports continue to further delay perishable products. The conflict in Ukraine obviously destabilised markets and disrupted product flow however shipping container costs have also seen massive increases. And to finish the supply chain off, rising energy costs have added to the impact across the supply chain. ?

Although the report breaks down data for Europe, Canada, USA, Mexico, Australia, New Zealand, Africa, and South America the scary story is what has been found worldwide.??

The survey found 57 percent of the global industry was selling at a loss or breaking even with 80 percent of respondents noting that they are now delaying or cancelling investments in their businesses. Interestingly, for the most part, it was noted that the produce industry has not received any governmental support during this time of hardship.?

The Australian data, supported by evidence from AUSVEG and the Australian Fresh Produce Alliance, had unanimous agreement that nearly all production and operating costs have gone up by 37 percent on average along with all agreeing that any rises is selling prices have not been sufficient to compensate for rising production and operating costs.??

We have so many questions to answer. How long can growers hold out to make a profit? What does ‘holding out' mean for those growers who have been eating into their own personal capital to support farm production? Where is the data for growers to support their decision making on how long these costs and lack of profit will last? Who in government is watching this closely???

And my personal favourite – whilst growers are not able to pay themselves, are trapped in debt bondage, are forced into working ridiculous hours putting their own safe working environments at risk, receive payments for produce which don’t even reflect a break even and if they speak out live in fear of retribution - when is it time to realise our own growers are living the very definition of the term ‘Modern Slavery’?