Energy Crisis in France Negatively Affecting Fruit and Vegetable Sector as Costs Skyrocket

Fresh Apple

Francois Rotteleur

Published Oct 10, 2022

The dramatic increase in the cost of energy in Europe in 2022 is affecting all companies in the fruit and vegetable sectors, especially those who rely heavily on cooling and ripening. French companies who renegotiated their electricity contracts recently or have to renegotiate their contracts with energy suppliers in the coming months are experiencing record high tariffs which risks the sustainability of the companies. Nearly 1 out of 4 companies in the sector must renegotiate their contracts by the end of the year.

As an example, the French apple sector has experienced electricity prices multiplied by 3, up to even 12 times for companies that have already had to renegotiate their contracts. Another example is an endive producer who renewed their contract and has seen their electricity bill increase from EUR 80,000 in 2021 to EUR 800,000 in 2022 for processing 3,000MT, a tenfold increase.

Operators in the fruit and vegetable sectors are already working to reduce their energy dependence as much as possible. But due to technical constraints, it is sometimes impossible for companies in the sector to reduce their energy consumption beyond a certain point. As France faces an energy crisis it is rationing electricity. If rationing is put in place in the fruit and vegetable sector in the form of power cuts, the market supply can be disrupted. For example, a power cut in the banana ripening room for more than 4 hours would lead to the total loss of product.