Vegetable and fruit prices have been on the rise in the Czech Republic in recent times, which has led to concerns among consumers and stakeholders. The primary reason for the increase in prices is the current winter season, which limits the availability of certain varieties of vegetables and fruits, thereby reducing supply and driving up prices. Additionally, growers have reduced their production due to high energy prices, leading to smaller stocks of fruits and vegetables than usual.

The high inflation rate in the country has also had a significant impact on food prices, with vegetables experiencing a 7.3 percent month-on-month increase in January, while fruits have seen a rise of 9.8 percent during the same period. The Vegetable Growers’ Union of Bohemia and Moravia has attributed this trend to several factors, including the seasonal trend where the cost of storing vegetables in winter is reflected in prices while their availability is limited.

The energy crisis has further compounded the situation, leading to a multiplication of the price of agricultural inputs, while the increase in interest rates has made credit more expensive. The fear of extreme energy prices has led many growers to opt for direct sales instead of stocking vegetables in the fall. Consequently, operators have significantly reduced or entirely suspended production for the winter months, leading to lower stocks and a shortage of fresh fruit vegetables on the market.

The Czech Republic is highly dependent on imports of vegetables and fruits due to a self-sufficiency rate of only 30 to 50 percent. The Chairman of the Fruit Growers’ Union of the Czech Republic, Martin Ludvík, has identified the lack of support for growers and questioning of self-sufficiency by many governments as a significant challenge facing the industry. Ludvík also sees a problem with supermarket chains that prioritize buying as cheaply as possible, leading farmers to grow more economically attractive crops such as grain or rape, and consequently, the decline in domestic production.

In the long run, growers need to improve their self-sufficiency by building more warehouses, reducing labor costs by lowering levies for seasonal workers, and finding innovative ways to increase production. They also need to explore alternative markets beyond supermarket chains and focus on producing value-added products. There is a need for more government support in the form of favorable policies and incentives to encourage growers to continue to produce fruits and vegetables.

Vegetable growers expect prices to stabilize at a more acceptable level as the new harvest starts in southern Europe. However, the main harvest season for field vegetables will arrive during the summer, and for covered areas, a significant improvement in the situation is expected in the spring months. In conclusion, the increase in prices of vegetables and fruits in the Czech Republic is a complex issue with multiple factors at play, and a concerted effort by all stakeholders is required to address it effectively.

Article by Prague Forum