WORLDWIDE - As rising costs and labor hurdles continue to have significant impacts on the fresh produce sector, a Global Coalition of Fresh Produce Industries, including International Fresh Produce Association and Canadian Produce Marketing Association, have issued a rallying call. The coalition is urging public authorities to help bring relief to the rising costs of logistics, inputs, packaging materials, and more hurdles challenging the economic vitality of the produce supply chain.
“The global fresh produce industries unite in a call to national and regional public authorities and multilateral bodies, such as [World Trade Organization, Food and Agriculture Organization, United Nations Conference on Trade and Development Images, Organisation for Economic Co-operation and Development Images], and others, to respond with urgency to the current significant hikes of costs for logistics, inputs such as fertilizers, packaging materials, and energy and an overall shortage of labor, which is jeopardizing the economic viability of the fresh produce industry globally,” the coalition said in a recent statement.
The current challenges within the global supply chain have been leading to cascading negative effects for all parts of the industry, the release explained, with increased costs affecting multiple areas including 150–400 percent in container prices, 20 percent in truck transportation, up to 100 percent in fertilizer costs, and up to 100 percent in wood pallets prices.
Urging key stakeholders and public authorities to undertake urgent solutions to uplift the sector, the coalition has identified potential methods to preserve the sector’s short-term economic viability and sustainability. Some of those methods include:
- Increase attention and recognition of fruits and vegetables as a “strategic good” that have a significant contribution to the long-term sustainability of the planet and public health policies
- Introduce transport subsidies for fruit and vegetable growers and exporters aimed at alleviating the immediate impact of inflated price distortions in the sea freight market
- Avoid aggressive promotional price discounts made available to end consumers that undermine the value of fresh produce and ultimately reduce already stretched margins for growers and exporters
- Promote a global zero-VAT strategy for fruits and vegetables that would directly benefit producers, exporters, and consumers
“The Global Coalition of Fresh Produce is committed to continuing work on sector-based solutions—both together as well as in its respective regional contexts,” the statement continued. “However, these complex issues with their dramatic consequences can only be tackled by public-private collaboration, in which we are aiming to be a constructive and proactive partner.”
To read the coalition’s statement in its entirety, click here.
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