The Global Coalition of Fresh Produce has released the final results of its third global survey on costs and revenues in the fruit and vegetable industry, highlighting persistent cost pressures across the supply chain and growing concerns about the sector’s long-term economic sustainability.
Conducted during spring and summer 2026, the survey follows previous studies carried out by the Coalition in 2023 and 2024, when fresh produce businesses worldwide were facing unprecedented increases in operating costs. This latest edition also examines the additional uncertainty created by the ongoing conflict in the Middle East.
The survey was completed by growers, packers, shippers and exporters, importers, wholesalers and retailers across global markets.
Cost increases affect the entire supply chain
The findings show that fuel and gas, shipping, fertilisers, plant protection products and packaging remain the five most significant cost pressures in the fresh produce industry. Around 85% of respondents reported rising costs in each of these categories.
Electricity, labour and machinery costs are also increasing, with around three quarters of respondents reporting higher expenses.
The scale of the increases is particularly significant. Fuel and gas stand out as the most critical pressure, with one in five respondents reporting increases of more than 50%, while two thirds have experienced increases of at least 10%.
Shipping costs have also risen sharply, with three quarters of respondents reporting increases of at least 10% and one in six experiencing increases of more than 50%. Fertiliser costs follow, with 70% of respondents reporting increases of 10% or more.
Overall, almost two thirds of businesses surveyed have experienced total cost increases of at least 10%, while one in seven report increases exceeding 50%.
Limited ability to pass higher costs on
Despite the scale of the increases, many businesses are unable to recover them through higher selling prices.
Almost half of respondents say they cannot increase their selling prices sufficiently to compensate for rising costs, while around a quarter remain uncertain. Only one quarter are confident that they can fully pass higher costs on to their customers.
Limited bargaining power is identified as the main reason. Many growers describe themselves as price takers, with prices determined by buyers or prevailing market conditions. Strong competition and resistance from buyers to higher prices also make it difficult to increase selling prices, particularly at a time when consumers are already dealing with inflation and reduced purchasing power.
The result is continued pressure on margins throughout the supply chain.
Further cost increases expected
The survey suggests that the current pressure is unlikely to ease in the short term. Almost 90% of respondents expect their overall costs to increase further, with packaging, labour, plant protection products, shipping and fertilisers among the categories most frequently expected to become more expensive.
More than 80% anticipate higher costs in each of these areas.
Fuel remains the most concerning category, with almost a quarter of respondents expecting fuel costs to rise by 50% or more over the next 12 months. Significant increases are also expected for fertilisers, shipping and electricity.
Middle East conflict adds uncertainty
The conflict in the Middle East is creating additional pressure through higher operating costs and disruption to international trade routes.
More than 90% of respondents expect higher fuel and gas costs, potentially affecting production, refrigeration, transport and distribution. A further 80% anticipate higher shipping costs, while 74% expect fertiliser prices to increase as a consequence of the conflict.
Several respondents reported disruptions to established shipping routes, changes in destination ports and greater difficulty planning shipments. Some businesses are already adjusting their sourcing strategies and export destinations, while others remain uncertain about how the situation will evolve.
Transit times have reportedly increased by up to 300% in some cases, creating additional risks for highly perishable products and contributing to quality deterioration on arrival, as well as increased customer claims.
Rising costs put investment at risk
The survey also highlights the impact of cost inflation on companies’ ability to invest in future growth, innovation and sustainability.
Expansion is the area most affected, with 80% of respondents reporting that rising costs are limiting investment in additional farmland, greenhouses, warehouses, machinery and other productive infrastructure.
Sustainability investment is also under pressure, with 70% of respondents reporting an impact on spending aimed at improving energy efficiency, reducing waste and strengthening climate resilience.
Meanwhile, 63% say rising costs are restricting investment in innovation, including new technologies, improved production processes and new varieties.
More than two thirds of respondents report negative effects across at least two of these three investment areas, while almost 45% say all three are being affected.
Long-term economic sustainability under threat
The combination of rising costs, limited pricing power and reduced investment capacity is raising concerns about the future viability of fresh produce businesses.
Almost two thirds of respondents consider their medium-term economic sustainability to be at risk, while a further 21% remain uncertain. Only around one in seven businesses are confident that their economic sustainability is not threatened.
Rising input costs are identified as the leading threat, cited by 95% of respondents, followed by transportation costs at 92%. Insufficient profits to fund investment affect 70%, while rising labour costs are cited by 69% and regulatory compliance costs by 59%.
According to Greg Palmer, Chairman of the Global Coalition of Fresh Produce and Vice President of Trade and Market Development at the Canadian Produce Marketing Association, the most concerning aspect is the effect of financial pressure on future investment.
RELATED NEWS: Global Coalition calls for new charter to improve fresh produce logistics
“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 warned that rising costs could create a cycle of lower profitability and underinvestment, restricting companies’ ability to improve efficiency, remain competitive and adapt to future challenges.
He also highlighted the finding that two thirds of respondents fear they may have to close their operations within the next two to three years, describing it as particularly alarming.
Resilience remains a strength of the sector
Despite the difficult outlook, the Coalition stresses the resilience demonstrated by the fresh produce industry in responding to previous market disruptions.
“The fresh produce industry has shown great resilience in adapting to immediate challenges,” Palmer said.
However, he stressed that achieving sustainable recovery and growth will require action on the structural factors behind rising costs, alongside adequate support for long-term investment and innovation.
“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,” he concluded.
The data collected through the 2026 survey will be used to develop global and national perspectives on production and operating costs and prices across Canada, the United States, South America, Europe, Africa and Australasia.
