Yiannis Ioannou
Soaring retail prices for fresh fruits and vegetables have heavily impacted both consumers and producers in recent months. According to the Cyprus Consumers' Association, inflationary trends affect households and perishable producers alike, particularly in the summer due to seasonality. Producers are not receiving compensation in line with the prices consumers pay, as they are compensated at cost prices.
Producers are also suffering
A survey covering 30 types of fruits and vegetables reveals an alarming increase in retail prices of perishables that surpasses the reasonable gross profit rate for producers.
A survey by the Cyprus Consumers' Association (CCA) covering 30 types of fruits and vegetables, essential to the average household budget, reveals an alarming increase in retail prices of perishables that surpasses the reasonable gross profit rate for producers. In 27 out of 30 fruit and vegetable categories examined, the gross profit percentage on the producer price exceeds 107%, significantly higher than the 50-60% gross profit typically earned by producers.
Bananas... unattainable
Local bananas, cherry tomatoes, strawberries, and Cypriot aubergines show the highest price discrepancies between producer and retail prices. The difference for local bananas is 171%, and for cherry tomatoes, it's 120%, considering additional ripening and packaging costs. Strawberries, carrots, aubergines, and onions also have substantial price differences of 107%, 97%, 97%, and 92%, respectively. The Cyprus Consumers' Association calculated these data between April and July 2024, using the Ministry of Agriculture, Rural Development, and Environment's "e-kalathi" app.
Subject of regulation
Seasonality, climatic conditions, and trading practices (middlemen) are key factors influencing the pesticide trade, exacerbated by increased inflationary trends in Cyprus and globally, resulting in excessive retail price hikes. The Consumers' Association stresses the urgent need for authorities to address this issue, as it impacts both consumers and producers who are not compensated according to consumer prices.
The background
The Consumers' Association highlights that from 1969 to 1998, maximum profit margins on retail fruit and vegetable prices were regulated by decree for 29 years without amendment. These margins were deemed reasonable by all parties. Additionally, from 1991 to 1998, perishables wholesalers were required to issue receipts to producers within three days of sale, detailing the quantity, price, total money received, and the commission deducted for services, which averaged 15%.
[This article was translated from its Greek original]
