In Australia, a survey of the supply chain for six fresh foods found that shops get as high as a 76 percent share of the final price while growers, especially of oranges and apples, miss out. Growers complain that whilst retailers and wholesalers still profit and the prices remain unchanged in shops, they are suffering as the price paid to them decreases.
Valencia orange grower Tania Chapman said she is getting 25¢ per kilogram, which barely cover her rising production costs. Others are getting as low as 17¢/kg and losing money.
Fairfax Media found juicing oranges at three greengrocers for an average $3.82/kg, meaning, based on current wholesale prices, retailers were claiming about 65 per cent of the final price.
For granny smith apples, the wholesale price is $1.92/kg, compared with $4.82/kg at the shops, meaning retailers held a 60 per cent share of the retail price.
John Dollisson, chief executive of Apple and Pear Australia, said the average farm-gate price for all apple varieties last year was $2.57/kg while the retail price was $4.20/kg.
In terms of profitability, 2015 was one of the worst years on record, with some growers – like some of the valencia growers – unable to cover production costs, he said.
Food market analyst Steve Spencer, of Freshagenda, warned against comparing farm-gate and retail prices, saying margins along the supply chain varied, especially for fruit, depending on the season and supply and demand.
The final shop price was largely based on affordability – what consumers were willing to pay. For common fruit, that typically hovered between $3 and $4 a kilogram, he said.
"Vegetables prices are more stable because they typically have a shorter production, so it's easier for supply to be flattened out. They're reliably available for most of the year."
The supply chain survey found the greatest profit margins were in vegetables and herbs, with both a single continental cucumber and a coriander bunch selling for 50¢ wholesale and about $2 at the shops.
