Lettuce plant deals with diesel price increase

YUMA, Ariz. (KYMA, KECY) - High gas and diesel prices are affecting the local AG industry.

GreenGate Fresh is a local lettuce processing plant that has to deal with the increase in diesel prices as it delivers products throughout the country on a daily basis.

Diesel prices in Arizona and around the country have recently broken new records.

Diesel averaging five dollars and 9 cents a gallon in Yuma and five dollars and 14 cents statewide, up significantly from a year ago when diesel cost just over three dollars a gallon on average in Arizona.

"Prices are quite high, and loads are still at the same price as when fuel was cheaper," said Luciano Gomez, a local truck driver.

Brian Rooney, the director of supply chain for GreenGate Fresh, says the high diesel prices impact everyone.

“Fuel is just adding to the fire there. With the cost increasing, operating costs for a truck, 39 percent of that is fuel costs, so when those become so volatile and reactive like they have of late, we see tremendous pressure on the trucking industry,” said Rooney.

GreenGate ships leafy greens like lettuce, cabbage and kale just to name a few, across North America.

“So we ship up into New York and Florida and Eastern Canada, and really all over the U.S. So as the gas prices are going up, the freight rates are going up and depending on the structure of the contract, it may eat into your margin and make it much more difficult to actually make money on the cases that you’re shipping,” said Richard Warsaw, GreenGate Fresh director of food quality and safety.

With an average of 50 trucks full of leafy greens per day, this diesel problem will continue for GreenGate and other lettuce processing plants.