The big squeeze: opportunities and challenges facing the fresh produce industry

Posted by Matt Stillwell on Apr 3, 2017 6:19:44 AM

The big squeeze: opportunities and challenges facing the fresh produce industry

There’s never been a more exciting time to be a Repacker.

You’re already operating a large Repack business that is taking advantage of new growth opportunities created by more sophisticated consumers, new technologies and converging supply chains.

But you know that to survive, thrive and get ahead of competitors, you’ll need to transform your business to become more agile, profitable and responsive.

Are you prepared for all the opportunities and challenges facing the fresh produce industry?

To find out why our industry needs to adapt to changing markets and shift to a smarter global food system, download our new guide: Repackers face the big squeeze: Increase the profitability of your operations while responding to customer demand.

There are many opportunities we need to prepare for.

Rapid global population growth is increasing the demand for food and natural resources, presenting an immense opportunity for the fresh produce industry.

In 2050, it’s predicted that the world population will increase by two billion people to over nine billion, many of whom will have twice as much income to spend.

To accommodate this rapid growth, the FAO (Fruit and Agriculture Organization of the United Nations) is predicting that we’ll need 60% more food, 50% more energy and 40% more water by 2050.

But there are challenges we need to overcome.

Arable land and natural resources are limited and we are already using a lot of what we have available. With climate change and the increasing competition for land between food and biofuels, this will only be exacerbated.

Our increasingly urban global population, with changing consumption needs is looking to our industry to increase production, availability and access to food. A larger wealthier middle class is expecting food that is fresh, healthy and convenient, without sacrificing quality or increasing the cost.

To meet these demands, traditional methods are being challenged and a new global food system is being created. We’ll need to proactively adapt how we operate if we’re to solve the issue of feeding more people while using less land, water and energy.

What could a new global food system look like?

The new system will need to:

  • Be more efficient, better able to meet consumer expectations, more profitable and more resilient in the face of macro-economic pressures

  • Combine new technologies and processes to change the speed at which decisions are made, and to optimize the use of resources to produce and deliver the food consumers need, where and when they need it

  • Transform our traditional structures into sophisticated marketing and technology-driven operations that are better equipped to acquire new customers, drive customer loyalty and increase revenue.

Are you seizing the fresh produce opportunity?

To survive, thrive and get ahead of current and future competitors, you’ll need to invest in technologies that automate your manual processes and increase your throughput, adding speed and accuracy to your sorting, packing and distribution.

We know that choosing a new business solution can be daunting. Get it right, and you’ll have the opportunity to increase productivity and acquire new customers. Get it wrong, and your business could be left behind.

To help you, we’ve published a new guide that discusses the big trends changing the fresh food industry, with examples of companies that are successfully evolving their business models. We look at the challenges Repackers face and the benefits you can anticipate by investing in new technologies that increase throughput and drive down labor costs, adding speed and accuracy to your food sorting, packing and distribution.

If you can transform your business to be more agile, profitable and responsive, you’ll create opportunities to forever change your customers, your company and your career.

Compac is the leader in integrated post-harvest solutions and services for the global fresh produce industry. Our new guide Repackers face the big squeeze: Increase the profitability of your operations while responding to customer demand is aimed to help you understand trends in the fresh produce industry, and how to best respond to them.

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Matt Stillwell

Written by Matt Stillwell

Digital Marketing Manager - TOMRA

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