- ProducePay releases an industry-wide survey highlighting challenges faced by produce stakeholders in the U.S. and Latin America.
- 83% of respondents are affected by commodity pricing volatility.
- Over 50% of respondents rate cost of inputs, ability to grow quality produce, and weather unpredictability as “extremely significant” in negatively impacting their business.
- 60% of respondents estimate that more than 10% of their produce is wasted due to supply chain inefficiencies.
- The survey results emphasize the need for improving predictability in the produce supply chain.
ProducePay, an agtech company aiming to transform the global fresh produce industry, has released the findings of a comprehensive survey. The survey focuses on the business stability of various stakeholders in the produce industry, including growers, packers, distributors, integrated suppliers, and end buyers in the United States and Latin America.
The survey reveals that a majority of the respondents (55%) are growers, producers, and packers. The data highlights the increasing volatility and unpredictability that are limiting the fresh produce sector, which is crucial for feeding a growing global population sustainably.
Commodity Pricing and Business Stability
Commodity pricing volatility remains a top concern, affecting 83% of the survey respondents. Additionally, 52% of growers and 30% of respondents overall rated their current business climate as less positive compared to last year, on a scale of 1-10.
Significant Business Impact Factors
More than half of the respondents rated the following factors as “extremely significant” in negatively impacting their business: cost of inputs (55%), ability to grow and deliver quality produce (53%), commodity pricing volatility (52%), weather unpredictability (52%), and reaching fair pricing terms (50%).
The survey indicates that these challenges have worsened compared to last year. Specifically, weather unpredictability has worsened for 54% of respondents, cost of inputs for 53%, cost or access to labor for 46%, commodity pricing volatility for 44%, and cost or access to capital for 40%.
A concerning 60% of respondents estimate that greater than 10% of their produce is wasted, degraded, or damaged due to supply chain inefficiencies.
ProducePay aims to support the entire vertical—from grower to retailer—by eliminating volatility and unpredictability. The company has already started to make an impact, collaborating with Four Star Fruit to launch a first-of-its-kind, direct-to-retail program that ensures a stable supply of high-quality produce.
Image provided by ProducePay