Two Per Cent Hike Piles More Strain On Topfruit Sector

Topfruit growers are set to face an approximate two per cent rise in production costs in 2026, as inflationary pressures around orchard management and post-harvest operations continue to squeeze margins.

The uptick in costs reflects broader economic challenges in the fresh produce sector, with key inputs such as labour, machinery, storage and logistics all contributing to the increased outlay growers must absorb.

Industry commentators say that while a two per cent rise may appear modest in isolation, it follows several years of cumulative cost inflation — including elevated energy, packaging and fertiliser expenses — placing sustained pressure on profitability for those cultivating apples and pears.

According to the new analysis commissioned by British Apples & Pears Limited (BAPL), the biggest areas of inflation are in:

• Growing and harvest costs, up nearly 3%, driven by labour-related activities such as pruning, thinning and harvesting.

• Overhead costs, also rising by 3%, including full-time labour, machinery depreciation, repairs, insurance, property costs and finance.

• Storage, grading, packing and marketing, which together increased by 2% and remain one of the largest absolute cost centres for growers.

The fresh produce sector has already weathered considerable cost headwinds in recent seasons, with growers adjusting to higher wages and input prices that have significantly outpaced returns from retailers and wholesale markets.

For topfruit producers — especially those balancing the delicate economics of seasonal harvests and labour-intensive orchard work — managing these rising costs without transferring them fully to the supply chain will be critical to maintaining competitiveness in 2026 and beyond.