Where are you getting a 4% increase at the grocery store and where do you pay $4.00 for a bag of carrots?  
Farmers haven't even recouped the increases in hydro, gas, fuel and fertilizer increases yet and now we are suppose to swallow a 32% increase.
No matter how you slice that tomato oldgit  McDonalds, Galen Weston and all the others are not going to pay enough for the farmer to recoup the costs.
BTW labour costs are closer to 35-40% of our input costs.