Inflation, lower purchasing power, and unprecedented drought. After a particularly complicated summer for the professionals in the sector, Interfel alerted the French government and general public about the urgency of the situation during a special press briefing on September 22nd.
The exceptional increase in energy costs has a direct, and sometimes unknown, impact on most professions in the fruit and vegetable sector, putting companies that are essential to feed the entire population at risk.
In spite of the worrisome economic and geopolitical situation and the high global inflation during the summer (+5.8% in August 2022 compared to 2021), the inflation on fruit and vegetables remains below 2%. Continuously, lack of fruit and vegetable is from everywhere.
England: Energy bill skyrocketed 5 times
In 2022, the cost of heating farmers’ greenhouses as a result of geopolitical situation. Across Europe, farmers and food businesses are cutting production as they struggle to cope with soaring energy costs. In England, farmers’ energy bill was about five times what it was this time last year.
Crops that require intensive heating in colder climates, such as cucumbers, tomatoes and lettuce, are the most directly affected. But the energy crisis is impacting the England food supply chain more broadly, with bakers, dairy farmers and other producers, including of sugar beet and olives, also struggling to pay bills, as costs rise much faster than the prices they can secure from wholesalers.
Brussels: 70% of vegetables curtailed by gas prices
Refrigeration and cooling are very energy intensive, as is the heating of greenhouses. Brussels is expecting some shortages and greater seasonality, as well as a rise in prices to somewhat offset the increase of production costs.
Western Europe faces its worst energy crisis. In addition to skyrocketing energy, food makers are also facing high costs for fertilizers, with more than 70% of the region’s vegetables capacity for the crop nutrients curtailed by the record gas prices.
Netherland: Energy costs threaten the canned vegetables
The development in the energy price makes the future for Dutch canned vegetables uncertain. The VIGEF (Association of Dutch Fruit and Vegetable Processors) is concerned that the Dutch fruit and vegetable processing industry will have to deal with fierce competition from countries around us.
While the cost of energy for own use was about 5% of the total cost of canned or glass vegetables a year ago, it is currently 25-35%. Gas is used in the preparation process to process the – mainly Dutch – fresh vegetables.
The higher energy prices have consequences for the price of glass and tinplate, important packaging materials for preserves. These have increased by more than 35% on average. In addition, the vegetable crops themselves have also increased in price, for example due to competition with crops such as grain, of which large quantities were grown in Ukraine, but also due to higher fertilizer prices.
Ocean Treasure’s Solutions
Ocean Treasure is a French company operating in China for 15 years. We provide a wide range of frozen vegetables & fruit all over the world. () Qualified by BRC, ASC, MSC, Ocean Treasure is committed to satisfying the needs of international business.
Since there is a high demand of tomato paste this year, Ocean Treasure collects a high level of tomato paste from north of China, where the tomato quality is well-known because the solar radiation amount is abundant. However, with limited raw materials, the prices keep rising as the cold is coming. Kindly see the specification below:
brix 28-30%, cold break, 2022 New crop
packing: drum, 220-250 kg net weight, -PH: 4.2±0.2, BOSTWICK: 6-10CM/30S,
A/B SCALE：.2.1, – HMC≤50%, lycopene: 50gm/100g min
ETD: around one month after prepayment received.
Other products like Garlic, Onion, Mixed vegetable are also available!
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More product: www.ocean-treasure.com/products/
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