The fresh produce sector experienced an annualized pricing volatility of 70% in 2023, with some commodities, like mangoes, showing nearly 150% volatility at the shipping point, according to a recent report from ProducePay. Over 10 commodities recorded more than 90% annualized volatility, underscoring the industry's challenge in achieving price stability.
"The central concern is the volatility in pricing, particularly for stakeholders within the supply chain. This report aims to demonstrate how volatility is holding the industry back and why it’s vital for all stakeholders to work together in bringing more stability and predictability," says Patrick McCullough, CEO of ProducePay.
Key takeaways:
- 56% of respondents reported an increase in extreme weather events compared to 2023.
- 59% noted higher labor costs and persistent labor shortages.
- 60% of marketers (who both grow and buy produce) and 53% of growers indicated worsening access to capital compared to 2023.
“Reducing volatility will not only help businesses across the supply chain grow, but will [also] enable the industry as a whole to thrive. By doing so, we’re cutting down on waste, lowering greenhouse gas emissions, and securing the food supply for future generations,” says McCullough.