ProducePay Reveals Strategy to Strengthen Avocado Supply Chain; Pablo Borquez and Olmo Bastida Discuss
LOS ANGELES, CA - At its core, a vital part of the produce industry is relationships. Whether it be the connection between suppliers and retailers, or retailers and consumers, each relationship plays a crucial role in keeping fresh produce thriving. ProducePay, an AgTech startup founded by growers for growers, is strengthening the partnerships between growers and buyers. Currently, the company is focused on offering unique services to build a better avocado supply chain in 2022.
“The avocado supply chain has had many challenges over the last few months, not only because of the temporary cease of imports from Mexico, but also caused by an increased consumption of this product in the American homes,” says Pablo Borquez, Chief Executive Officer and Founder. “U.S. buyers will need a better grower sourcing to have the appropriate quota of avocado to supply the demand of the next eight years.”
According to data from the U.S. Department of Agriculture (USDA), the per capita consumption of avocados in the U.S. is anticipated to reach 11 lbs by 2026. Based on an average annual increase of 8 percent, ProducePay forecasts consumption to reach 18 lbs by 2030. While domestic production of avocados provides enough volume to meet this demand from April to September, imports are necessary between October and March.
For these reasons, ProducePay is redirecting its efforts to attract more avocado producers to its Marketplace, providing American buyers with access to a larger pool of pre-vetted growers.
“Our mission has always been to find, finance, and fulfill grower supply for importers of fresh produce,” adds Olmo Bastida, Agricultural Exports Specialist. “What we have seen in the fresh produce industry nowadays is that younger generations will increase the American consumption of avocado since they consider it as a part of a healthy lifestyle.”
ProducePay’s Marketplace is a first-of-its-kind digital platform that connects pre-vetted growers and buyers, simplifying the sourcing process. Members of Marketplace have access to benefits like its recently launched Quick-Pay+ financing, which will enable avocado growers to get 96 percent of their shipment's value 24 hours after their buyer confirms its reception. This will also lighten the burden of buyers when it comes to payment, allowing them to focus on selling products.
Further bolstering its support of the avocado supply chain, ProducePay sends Business Insights, and Daily Market Reports detailing pricing and commodity trends and is free to subscribe. Through its Avocado Analysis and avocado whitepaper, the company can share information on how the market has behaved the last few years and its future outlook.
If you would like to sign up for these Daily Market Reports, click here.
Are you interested in strengthening your avocado category relationships or forming new ones? Reach out to ProducePay today.