Produce Pay, founded in 2014, offers a digital marketplace for growers and buyers to trade with verified members, providing better market access and transparency in the produce supply chain. 

“In this industry, growers, buyers, suppliers, and retailers all suffer from a volatile market, because of pricing, and weather conditions, among many others. Our job is to stabilize the supply chain, so that retailers and growers can enjoy a year-round supply of high-quality produce,” Keely Wachs, senior vice president of marketing for Produce Pay tells FreshFruitPortal.com.

The company has a network of producers in Chile, Mexico, and Peru available for their clients. Additionally, it offers financing for growth plans in production, including funding to implement new varieties.

“Producers can connect with the largest retailers, receive credits to expand their operation, and get paid immediately when sending a shipment,” says Wachs. 

With this method, growers prevent cash constraints they may suffer when having to wait months to get paid for their products. 

Supply chain intelligence is a great tool to reduce market volatility, giving growers and retailers a clearer picture of what the industry will look like in the near future. 

Inefficiency and waste

Produce Pay recently published its second annual industry survey which showed that “commodity pricing volatility affects 83% of produce growers, suppliers, and buyers. As a result, more than half of produce growers struggle with business stability.”

In an article published on Agriculture Dive, Patrick McCullough, CEO of Produce Pay indicated that “Beyond weather, factors such as transportation and cold storage lead to even more inefficiencies and sustainability challenges. A single shipment of produce will typically travel 1,600 miles, changing hands with up to eight intermediaries.”

“The fragmentation of the fresh produce supply chain and the speculative nature around fluctuating markets cannot be overstated. After going through so many middlemen, the average piece of produce is rebranded twice and marked up three to six times. The product is then held until the final buyer can maximize the price based on supply and demand. This not only causes pricing unpredictability for retailers and consumers but also makes for untraceable supply chains with challenges to food safety and limitations to information about sustainable growing practices,” adds McCullough.