- ProducePay releases survey results highlighting the challenges faced by stakeholders in the fresh produce industry, emphasizing the need for improved predictability and a more efficient supply chain.
- Key findings include concerns about commodity pricing volatility, worsening challenges in areas such as weather unpredictability and access to labor, and expectations of a more difficult business environment in the future.
- Over 10% of produce is estimated to be wasted due to supply chain inefficiencies, underscoring the importance of addressing these issues.
- ProducePay’s initiatives, such as providing access to capital and supply chain visibility, aim to support the industry and drive economic growth while reducing waste.
ProducePay, the innovative agtech company dedicated to transforming the global fresh produce industry, has released the results of a comprehensive industry-wide survey. The survey, which examined the business stability of produce stakeholders in the United States and Latin America, sheds light on the challenges faced by growers, packers, distributors, and end buyers. The findings underscore the pressing need to improve predictability and create a more efficient, resilient, and sustainable produce supply chain.
Key findings from the survey include:
- Commodity pricing volatility: 83% of respondents identified commodity pricing volatility as a top concern, highlighting the significant impact it has on the industry.
- Business stability: 52% of growers and 30% of respondents overall rated the stability of their current business climate less positive compared to the previous year.
- Business impact: More than half of respondents rated concerns such as the cost of inputs, ability to grow and deliver quality produce, commodity pricing volatility, weather unpredictability, and reaching fair pricing terms as “extremely significant” in negatively impacting their business.
- Worsening challenges: Weather unpredictability, cost of inputs, and access to labor were rated worse this year compared to last year, indicating a worsening trend in these areas.
- Concerns about the future: Respondents expect these challenges to worsen in the next five years, with a majority anticipating a more difficult business environment.
- Produce waste: 60% of respondents estimate that over 10% of their produce is wasted, degraded, or damaged due to supply chain inefficiencies. Patrick McCullough, CEO of ProducePay, emphasized the importance of supporting the entire vertical of the fresh produce industry to eliminate volatility and unpredictability.
Patrick McCullough, CEO of ProducePay, emphasized the importance of supporting the entire vertical of the fresh produce industry to eliminate volatility and unpredictability. By providing greater access to capital, trading, insights, and supply chain visibility, growers and buyers can have more control over their business and drive economic growth while reducing waste.
By providing unprecedented access to capital, trading, insights, and greater supply chain visibility, growers and buyers can gain greater control of their business and drive economic growth while reducing waste. ProducePay’s vision has already had a significant impact. Through a groundbreaking direct-to-retail program in collaboration with Four Star Fruit, one of the world’s largest growers and distributors of table grapes, ProducePay has ensured a stable supply of high-quality produce to consumers.
This program has not only driven financial sustainability but has also encouraged investments in sustainable agricultural practices. Since its inception, ProducePay has facilitated the trade of over $4 billion worth of fresh produce across 64 commodities and 17 countries in North America, Central and South America, and Europe.