Food prices may rise again, but growers aren’t cashing in

As global instability continues to push fuel prices higher, Canadians are once again hearing warnings about rising food prices.

And as that conversation starts again, it’s important to understand something clearly: when food prices rise, that does not mean farmers are making more money. In many cases, the opposite is true.

Fruit and vegetable growers are among the first to feel the impact of rising fuel costs because modern food production depends heavily on energy. Diesel powers tractors, irrigation systems, refrigeration, and transportation. Fertilizer production is energy intensive. Packaging, shipping, and distribution all become more expensive when fuel prices surge.

Right now, diesel prices have climbed dramatically – up 53 per cent year over year according to comparisons by our team at the Ontario Fruit and Vegetable Growers’ Association (OFVGA) – while fertilizer costs are up 20 to 30 per cent year over year.