A new, disturbing report issued by the Global Alliance of Fresh Products found that an amazing number of fresh products operators are considering leaving the industry due to unexpected pressure.
What is happening?
according to fruitThe report covered many factors that affect fruit and vegetable supply chains, including logistics, sustainability, commercial policies and input costs. A section on the economic feasibility of making products that revealed the results.
The coalition said that the fresh products operators suffer from “a hard operating scene characterized by geopolitical conflicts, climate change and inflationary pressures that disrupt global supply chains.”
Because of these difficulties, 70 % of the operators reported that they want to get out of the industry during the next three years, mostly due to the high expenses, the high costs of employment, and the reduction of selling prices.
The average sale rate increased in 2024 compared to the previous year, but the increase was not enough to cover the high operating costs. The report found that the challenges of the supply chain led to the work of a greater number of suppliers in a loss in 2024 compared to 2023. Moreover, issues that caused a decrease in profits showed “little signs of decline in the foreseeable future,” according to the alliance.
“While the volatile profit margins are a common occurrence in the manufacture of fresh products, the share of operators with profit remains at the lowest level registered over the past ten years,” he added.
Why is the report related?
The high global temperatures, the increasingly frequent weather events, and the other challenges that face grocery stores More expensive For consumers and forced operators to raise prices. The coalition said that the changing climate may affect the prices of fruits and vegetables in the future, and it is expected that business expenses such as fertilizers, fuel and shipping materials will increase.
These double problems are not just bad news for farmers and consumers – it is also a threat to supply chains. If fewer operators are working in this industry, this may lead to supply chain saneants and perhaps food lack if the system faces a lot of pressure at the same time.
The coalition indicated that the comprehensive customs tariffs on China and the customs tariffs on other countries by the Trump administration can cause more prices and “major transformations in global trading patterns”. Farmers in the United States have expressed their concerns about the ongoing trade war, as they could affect major exports such as corn, wheat and soybeans.
These basic crops were also affected by the increase in global temperatures and the most intense weather events in places such as India, Australia and Akllahoma. The heater makes the mixture difficult for animals and plants to flourish, as it disrupts ecosystems and natural growth cycle.
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What is done to secure global food supplies?
Scientists work on genetic adjustments to improve the elasticity and nutritional value of various crops, such as strawberries, while farmers resort to cultivating agriculture and agricultural wedding to grow low -cost crops.
As individuals, we can help Shop more intelligent in the grocery store To ensure waste of fewer food – and money – is lost. Little planning can lead to great savings and a smaller environmental effect.
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