Global Coalition flags persistent cost pressures in fresh produce

The Global Coalition of Fresh Produce has released the results of its third survey into costs and revenues across the global fruit and vegetable industry, conducted in spring and summer 2026.

It shows a sector struggling to deal with rising costs, with many operators struggling to pass on these increases and the vast majority expecting prices to rise even further in the coming year.

“We conducted this survey as a follow-up to the surveys conducted by the coalition in 2023 and 2024, when producers and traders the world over were facing unprecedented cost hikes,” said Greg Palmer, chairman of the coalition and vice-president of trade and market development at the Canadian Produce Marketing Association.

“The aim of this new survey was to assess current cost pressures in the fresh produce industry, especially in light of the ongoing war in the Middle East.”

The survey, completed by growers, packers, shippers, exporters, importers, wholesalers and retailers worldwide, found that:

Cost increases are widespread

The industry continues to grapple with rising costs. Fuel and gas, shipping, fertilisers, plant protection products and packaging emerged as the five most critical pressures, with 85 per cent of respondents reporting increases in each category. Three-quarters also reported rising electricity, labour and machinery costs.

Increases are substantial

Fuel and gas stood out, with one in five respondents reporting increases exceeding 50 per cent. Two-thirds reported fuel and gas cost increases of at least 10 per cent. Shipping costs had risen by at least 10 per cent for three-quarters of respondents, while one in six reported increases exceeding 50 per cent. Meanwhile, 70 per cent had experienced fertiliser cost increases of 10 per cent or more.

Overall, almost two-thirds of respondents reported cost increases of at least 10 per cent, while one in seven had experienced increases exceeding 50 per cent.

Sellers struggle to pass costs on

Nearly half of respondents said they could not raise selling prices sufficiently to compensate for rising costs. Around a quarter were uncertain, and only a quarter were confident they could pass increases on to buyers.

Limited bargaining power, intense competition and resistance from buyers were the main barriers. Many growers described themselves as price takers, with prices determined by customers or prevailing market conditions.

Further increases are expected

Nearly 90 per cent of respondents anticipate overall costs rising further. More than 80 per cent expect increases in packaging, labour, plant protection products, shipping and fertilisers. Almost a quarter expect fuel costs to rise by at least 50 per cent over the next 12 months.

The Middle East conflict adds uncertainty

More than 90 per cent of respondents anticipate higher fuel and gas costs as a result of the war, while 80 per cent expect shipping costs to rise and 74 per cent fertiliser costs. Disruptions to established shipping routes have led to changes in destination ports and difficulties planning shipments. Some businesses are adapting sourcing strategies and export destinations, while others remain uncertain about what lies ahead.

Transit times have reportedly increased by as much as 300 per cent, contributing to poorer product quality on arrival and more customer claims.

Investment is being squeezed

Rising costs are affecting businesses’ ability to invest in growth, technology and sustainability. Eighty per cent of respondents said cost pressures were negatively affecting investment in expansion, including land, greenhouses, warehouses and machinery. Seventy per cent reported an impact on sustainability investments, such as energy efficiency, waste reduction and climate resilience, while 63 per cent said costs were limiting investment in innovation.

More than two-thirds reported negative effects on at least two of these investment areas, and almost 45 per cent said all three were affected.

Long-term viability is at risk

Almost two-thirds of respondents consider their medium-term economic sustainability threatened, while a further 21 per cent are uncertain. Only around one in seven believe their businesses’ economic sustainability is secure.

Rising input and transport costs were the most frequently cited threats, identified by 95 per cent and 92 per cent of respondents, respectively. Insufficient profits for investment concerned 70 per cent, rising labour costs 69 per cent and regulatory compliance costs 59 per cent.

Overall conclusion

The survey identifies three interconnected challenges: rising costs, limited ability to pass increases on to customers, and declining capacity to invest. Together, these are squeezing margins, undermining competitiveness and raising concerns about the industry’s long-term economic sustainability.

“What is especially worrying 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,” Palmer said.

He warned that rising costs could trigger a cycle of reduced profitability and underinvestment, limiting businesses’ ability to improve efficiency, strengthen competitiveness and adapt to future challenges. He added that the finding that two-thirds of respondents fear they may have to close their operations within the next two to three years is “especially alarming”.

The war in the Middle East is adding to these difficulties. “The impact of the conflict extends beyond higher freight rates. Longer and less predictable transit times can be particularly damaging to fresh produce exporters because of the perishable nature of their products. When produce arrives later than expected or in poorer condition, exporters may face price reductions, customer claims, or product losses,” Palmer said.

Despite the challenges, he emphasised the industry’s resilience in responding to difficult market conditions. However, he noted, sustainable recovery and growth will depend on addressing the underlying causes of rising costs and ensuring adequate support for long-term investment and innovation.

For more information about the survey dataset and its analysis, contact the Global Coalition’s secretariat at info@producecoalition.net. The data will be used to develop global and national perspectives on production costs, operating costs and prices in Canada, the US, South America, Europe, Africa and Australasia.