ProducePay reveals progress on supply chain inefficiency and waste
It is estimated that up to 40% of the world’s fresh produce is lost post-harvest or wasted at retail and consumer level. This has both financial and environmental consequences.
One solution to deal with the problem is from US-based ProducePay. Its digital platform connects growers, marketers, and retailers to build more stable supply chains.
It hopes that by cutting out the middleman it can address volatility and inefficiencies in the agricultural supply chain and successfully combat waste.
Earlier this year the company raised a $38 million Series D led by Syngenta Group Ventures.
It has now unveiled its first impact report, which highlights key achievements in sustainability and supply chain efficiency within the fresh produce industry.
One success story is a partnership with Four Star Fruit, one of the world's largest producers and marketers of table grapes. In 2023, ProducePay sourced over 8,000 tonnes of table grapes from Mexico and Peru that were sold across the US.
Its platform achieved a 90% reduction in retail rejections, with 31% fewer days spent in transit for fresh produce and and 41% fewer days in cold storage. All in all, this avoided 393 tonnes of produce rejections – equivalent to 655,000 meals recovered.
“We’ve long recognised the valid concerns surrounding the environmental and social impact of the global agricultural sector,” said Patrick McCullough, CEO of ProducePay. “This inaugural impact report has allowed us to measure for the first time the positive outcomes of our day-to-day activities, including reducing food waste, improving working conditions, fostering community development, and promoting sustainable farming practices.”
“Our strategy is straightforward: by making commerce more predictable for growers, marketers, and retailers, we catalyse transformative change across the entire produce industry and positively impact millions of lives.”
The importance of finance in supply chain efficiency
ProducePay also offers several financing options to support growers and others in the fresh produce supply chain. Growers, for example, can receive up to 96% of their shipment's value within 24 hours after the buyer confirms reception. This aims to improve their cash flow and allow them to reinvest capital quickly.
Growers can also get pre-season capital to ensure they have the resources to plant and tend their crops and maintain a consistent supply of produce. This stability also benefits distributors and retailers who rely on steady produce availability.
ProducePay partners exclusively with farms that adhere to the highest environmental and social standards, in line with the International Finance Corporation (IFC) Performance Standards on Environmental and Social Sustainability. This ensures client compliance with environmental, employment, and safety policies within their network of growers. The company also develops Environmental and Social Action Plans when growers show room for improvement.
ProducePay’s impact report reveals that over $500 million was provided to global farmers meeting the IFC performance standards.
“As we continue to innovate and drive sustainability, our focus remains on creating long-term value for all stakeholders. By addressing the root causes of market volatility and food waste, we're not just building a more predictable supply chain—we're contributing to a more sustainable future for global agriculture and securing the food supply for future generations,” said McCullough.
