Surging fuel costs hit fresh produce supply chain
By
Cathy Burns, CEO of the International Fresh Produce Association
Surging fuel costs hit fresh produce supply chain
This is a moment of significant challenge for our industry. The ongoing conflict in the Middle East is sending shockwaves through global energy and commodity markets, and the fresh produce supply chain—from farm to fork—is feeling the impact acutely.
What we’re seeing:
- Fuel and freight costs have surged dramatically. Diesel prices have risen between 11 percent and 49 percent depending on the market, with the sharpest increases in Southeast Asia. Fuel surcharges are being added to ocean, truck and air shipping rates across all major trade lanes. For our industry, where freshness depends on reliable, uninterrupted cold chain logistics, these increases hit harder and faster than in most other sectors.
- Fertilizer prices are spiking. Urea, the most widely used nitrogen fertilizer, prices have increased over $260 per ton since late February. This comes on top of fertilizer costs that USDA had already projected to be 21 percent higher in 2026 than five years ago.
- Farmgate prices remain stagnant. Many of our grower members have seen the prices they receive for their products stagnate or decline for years. Honeydew prices have fallen 35 percent, Bell peppers 29 percent and cabbage 11 percent over the past three years alone. The gap between rising costs and stagnant revenues is becoming untenable.
- The impacts vary by region. Members closer to the conflict zone are experiencing faster, more severe disruptions. But no market is immune, global commodity pricing means that fuel and fertilizer shocks in one region ripple everywhere.
The immediate cost pressures are painful, but I am most concerned about what happens next. Fuel costs hit every day and affect every link in the chain. But fertilizer price shocks work differently; they affect what growers decide to plant, how much they invest and ultimately how much food reaches consumers months from now.
If growers cannot cover their costs of production, they will make rational decisions to reduce plantings, cut back on inputs or exit crops entirely. The consequences of that underinvestment will not appear on supermarket shelves immediately, but when they do, consumers will face tighter supply, less variety and higher prices.
That is why the decisions made in the next few weeks by buyers, retailers and policymakers matter so much. Fair, cost-reflective pricing today is what gives growers the confidence to keep planting for tomorrow.
What IFPA is doing:
Partnering with other associations across all of agriculture to ensure the U.S. Administration and Congress is aware of impacts and pressures of rising input costs.
On April 15, IFPA will host a Town Hall on the Impact of the Middle East Conflict on our industry from 12-1p.m. ET. Register here.
IFPA has also authored a letter it will send to President Trump, Cabinet officials and Congressional leadership detailing the critical impact of rising input costs and supply chain disruptions on the industry.
What we need from you:
- Share your story. If rising costs are affecting your operations, your planting decisions, or your ability to serve customers, let us know. Specific, real-world examples are the most powerful tool in our advocacy.
- Join the Advocacy Action Network to be informed quickly on ways to share your voice on this and upcoming issues.
- Stay informed. The situation is evolving quickly, and we want you to have the most current picture.
Our industry feeds the world. That mission does not pause because input costs are rising. But sustaining it requires that the costs and risks are shared fairly, that policymakers understand what is at stake and that growers have the confidence to keep investing in the crops that communities rely on.
You have my commitment that this association will be relentless in advocating for you during this crisis. I will continue to update you as the situation develops.