New report reveals concerning trend affecting food supply: 'A daunting operating landscape'

A troubling new report by The Global Coalition of Fresh Produce found that a staggering number of fresh produce operators are considering leaving the industry because of unexpected pressures. 

What's happening?

According to Fruitnet, the report covered numerous factors affecting fruit and vegetable supply chains, including logistics, sustainability, trade policies, and input costs. A section about the economic feasibility of the produce industry revealed concerning results. 

The Coalition said that fresh produce operators are experiencing "a daunting operating landscape characterised by geopolitical conflicts, climate change, and inflationary pressures that disrupt global supply chains."

Because of these difficulties, 70% of operators reported wanting to exit the industry within the next three years, mostly due to higher expenses, high labor costs, and reduced selling prices. 

Average selling prices increased in 2024 compared to the previous year, but the increase wasn't enough to cover rising operating costs. The report found that supply chain challenges resulted in more suppliers operating at a loss in 2024 than in 2023. Furthermore, the issues causing reduced profits showed "little sign of abating in the foreseeable future," according to the Coalition. 

"While fluctuating profit margins are a common occurrence in the fresh produce industry, the share of operators who are making a profit remains at the lowest level recorded over the past 10 years," it added. 

Why is the report concerning?

Rising global temperatures, increasingly frequent extreme weather events, and other challenges have made groceries more expensive for consumers and forced operators to raise prices. The Coalition said that the changing climate could impact fruit and vegetable prices well into the future, and business expenses such as fertilizers, fuel, and shipping materials are also expected to increase. 

These compounding issues aren't just bad news for farmers and consumers — they're also a threat to supply chains. If fewer operators are working in the industry, it could lead to supply chain bottlenecks and potentially food shortages if the system faces too many pressures at once. 

The Coalition noted that sweeping tariffs on China and a reinstitution of tariffs on other countries by the Trump administration could cause further price hikes and "major shifts in global trading patterns." Farmers in the United States have voiced concerns about the ongoing trade war, as it could affect key exports such as corn, wheat, and soybeans. 

These staple crops have also been impacted by rising global temperatures and more intense weather events in places such as India, Australia, and Oklahoma. The overheating planet makes it harder for animals and plants to thrive, as it disrupts ecosystems and the natural growing cycle. 

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What's being done to secure the global food supply?

Scientists have been working on genetic modifications to improve the resilience and nutritional value of various crops, such as strawberries, while farmers are turning to agroforestry and hydroponics to grow low-cost, sustainable crops.

As individuals, we can help by shopping smarter at the grocery store to ensure less food — and money — is wasted. A little planning can lead to big savings and a smaller environmental impact. 

Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.