Global Coalition of Fresh Produce Highlights Persistent Cost Challenges and Long-Term Sustainability Concerns

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

“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.”

Survey Results

The survey was completed by growers, packers, shippers and exporters, importers, wholesalers, and retailers around the world. The results reveal widespread cost increases, limited ability to pass those increases on to buyers, and growing concerns about the industry’s long-term economic sustainability.

Cost Increases Affect the Entire Fresh Produce Industry

The industry continues to grapple with widespread cost increases. Fuel and gas, shipping, fertilizers, plant protection products, and packaging emerged as the five most significant cost pressures, with 85% of respondents reporting rising costs in each category.

Cost increases for electricity, labor, and machinery are also widespread, with approximately three-quarters of respondents reporting increases.

Cost Increases Are Significant

Fuel and gas stand out for the magnitude of cost increases, with one in five respondents reporting increases exceeding 50%. Two-thirds reported fuel and gas cost increases of at least 10%.

Shipping recorded the highest proportion of respondents reporting increases of at least 10%, at three-quarters. One in six respondents reported shipping cost increases exceeding 50%. Fertilizers followed, with 70% of respondents experiencing increases of 10% or more.

Overall, nearly two-thirds of respondents experienced cost increases of at least 10%, while one in seven reported increases exceeding 50%. These findings suggest that financial pressure extends beyond minor price adjustments and represents a substantial rise in operating expenses for many businesses.

Most Sellers Cannot Pass Cost Increases on to Buyers

Nearly half of respondents said they could not raise selling prices enough to compensate for rising costs. Approximately one-quarter were uncertain, and only one-quarter were confident they could pass the increases on.

The findings point to shrinking business margins across the industry. Sellers cited limited bargaining power as the primary reason they cannot pass rising costs on to buyers. Many growers described themselves as price takers, with prices determined by buyers or prevailing market conditions.

Other frequently cited factors included intense competition, which makes raising prices difficult without risking customer losses, and buyers’ resistance to price increases—particularly as consumers contend with widespread inflation and reduced purchasing power.

Cost Pressures Are Expected to Continue

Nearly all businesses surveyed expect cost pressures to persist. Almost 90% of respondents anticipate an increase in overall costs, with packaging, labor, plant protection products, shipping, and fertilizers among the categories most frequently expected to become more expensive. More than 80% expect costs to rise in these categories.

Fuel remains a particularly significant concern. Nearly one-quarter of respondents expect fuel costs to increase by 50% or more over the next 12 months. Substantial increases are also anticipated for fertilizers, shipping, and electricity.

War in the Middle East Adds Uncertainty

The survey identifies two main consequences of the war in the Middle East for the fresh produce industry: higher operating costs and disruptions to international trade routes.

Fuel and gas are the most frequently cited concerns, with more than 90% of respondents anticipating higher costs. These increases could affect agricultural production, refrigeration, transportation, and distribution. Eighty percent expect higher shipping costs as a result of the war, while 74% anticipate higher fertilizer costs.

Respondents also reported disruptions to established shipping routes, changes in destination ports, and difficulties planning shipments. Some businesses are adapting their sourcing strategies and export destinations, while others remain uncertain about how the situation will develop.

Transit times have reportedly increased by as much as 300%, contributing to deteriorating produce quality upon arrival and more customer claims.

Rising Costs Are Limiting Investment

Rising operating costs are affecting businesses’ ability to invest in future growth, technological innovation, and sustainability.

Expansion is the most frequently affected area, with 80% of respondents reporting that rising costs negatively affect investment in additional agricultural land, greenhouses, warehouses, machinery, and other productive infrastructure.

Sustainability investment is also under pressure. Seventy percent of respondents reported an impact on investment in energy efficiency, waste reduction, and climate resilience. Meanwhile, 63% said rising costs limit investment in innovation, including new technologies, improved production processes, and new varieties.

Cost pressures are affecting multiple investment areas simultaneously. More than two-thirds of respondents reported negative effects on at least two of the three main investment areas, while nearly 45% reported impacts across all three.

The findings suggest that rising costs are not only reducing current profitability but may also undermine the sector’s long-term competitiveness.

Economic Sustainability Is a Growing Concern

Nearly two-thirds of respondents consider their businesses’ medium-term economic sustainability to be at risk. Another 21% remain uncertain, meaning only about one in seven businesses are confident their economic sustainability is not threatened.

Rising input and transportation costs are the most frequently identified threats, cited by 95% and 92% of respondents, respectively. Insufficient profits for investment are another major concern, affecting 70% of respondents, followed by rising labor costs at 69% and regulatory compliance costs at 59%.

The results suggest that cost increases are no longer viewed simply as a short-term operational problem. For many businesses, they represent a potential threat to financial viability over the next two to three years.

Overall Conclusion

The survey identifies three interconnected challenges: widespread cost increases, limited ability to pass those increases on to customers, and reduced capacity to invest. Together, these pressures are squeezing profit margins, undermining competitiveness, and raising concerns about the sector’s long-term economic sustainability.

Cost increases are both widespread and severe, with many businesses reporting double-digit increases across multiple essential inputs, particularly fuel and gas, shipping, and fertilizers. These pressures are expected to continue over the next 10 to 12 months, with the vast majority of respondents anticipating further increases.

Limited bargaining power, intense competition, and buyers’ resistance to price increases are preventing many producers and exporters from passing additional costs on to customers. As a result, businesses are absorbing rising costs, further squeezing margins and increasing financial pressure on an already strained sector.

“What is especially worrying,” Palmer said, “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.”

According to Palmer, the central concern is that “rising costs may create a cycle of reduced profitability and underinvestment, limiting businesses’ ability to improve efficiency, strengthen competitiveness, and adapt to future challenges.”

He added: “The survey’s finding that two-thirds of respondents fear that they may have to close down their operations within the next two to three years is especially alarming.”

The war in the Middle East is adding to the industry’s 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 these challenges, Palmer emphasized the industry’s demonstrated ability to respond to difficult market conditions.

“Over the past years, the fresh produce industry has shown great resilience in adapting to immediate challenges,” he said.

“However, 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.”

For more information about the survey dataset and analysis, contact the Global Coalition of Fresh Produce secretariat at info@producecoalition.net.

The data collected will be used to develop global and national perspectives on production and operating costs and prices in Canada, the United States, South America, Europe, Africa, and Australasia.

About the Global Coalition of Fresh Produce

The Global Coalition of Fresh Produce brings together fresh produce associations from around the world, united by a shared vision of creating resilient and sustainable global value chains for fruits and vegetables.

The Coalition works to identify solutions to disruptions in global fresh produce supply chains, including rising costs, and to share and promote best practices.

Current members include the Association of Banana Exporters of Ecuador (AEBE), AUSVEG, the Canadian Produce Marketing Association (CPMA), the Committee Linking Entrepreneurship–Agriculture–Development (COLEAD), Freshfel Europe, the Fruit and Vegetable Growers of Canada (FVGC), the International Fresh Produce Association (IFPA), the Southern Hemisphere Fruit Alliance (SFA), and United Fresh New Zealand.

The Coalition calls for continued action, collaboration, and knowledge-sharing among the global fresh fruit and vegetable industry, policymakers, and other stakeholders to identify gaps in current efforts, develop improvement strategies, and promote the beneficial contributions of fresh produce to society and the environment.