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Blog | 4 min read
How can farmers avoid buyer rejections
ProducePay
April 17, 2024
ProducePay
April 17, 2024

How can farmers avoid buyer rejections

When buyers reject their products, farmers experience many adverse consequences, including direct economic losses, disrupted operational plans, damaged business relationships, increased costs for managing unsold products, and a negative reputation.

Unfortunately, growers are usually unable to track their produce once it leaves their farms, which is why we created ProducePay Visibility. This new solution allows suppliers to ensure their deliveries arrive on time and in suitable condition for retailers. 

What happens to agricultural products once they leave the farm?

Agricultural products embark on a complex journey during shipping, which involves several critical links to ensure their arrival at markets. Understanding this journey is essential to grasping how food is distributed and consumed worldwide.

The supply chain for agricultural products begins with their preparation for harvest and transport. This crucial step requires maintaining quality and freshness through proper handling and packaging techniques.

Then, the products are shipped, often over long distances, to distribution centers or directly to points of sale, such as markets, supermarkets, and specialty stores. Optimizing logistics is essential for minimizing transit time, ensuring ideal shipping conditions, and reducing the risk of deterioration.

Yet, it is during this journey that visibility over agricultural products is lost. Logistical challenges, changes of hands, and a lack of traceability affect the perception of freshness and quality and the ability to follow the product through the supply chain.

Benefits of traceability for producers

Traceability offers a strategic opportunity for producers to improve their operations and enhance competitiveness in an increasingly informed and demanding global market.

Improving quality management

A system that tracks the product’s journey from the field to retailers allows producers to quickly identify any incidents affecting the quality or safety of the product.

This responsiveness prevents public health risks and significant economic losses due to product recalls and strengthens consumer confidence in the brand.

Detailed insight into process efficiency

Knowing exactly what happens to their products once they leave the field empowers producers to identify bottlenecks, inefficiencies, or critical points needing improvement. This data can optimize resources, reduce costs, and improve business profitability.

Moreover, increased access to information allows farmers to better adapt to market demands, which is essential to remain competitive.

Demonstrating the sustainability of agricultural practices

At a time when consumers and regulators demand greater environmental responsibility, proving that products have been sustainably obtained can open doors to more profitable markets and financing opportunities.

Therefore, traceability improves agricultural producers’ image and market position and aligns them with global sustainability goals.

What does ProducePay Visibility offer to farmers?

ProducePay Visibility provides end-to-end supply chain visibility, addressing the need for more detailed information about the status and whereabouts of products as they ship.

Traditionally, this uncertainty has led to increased financial vulnerability for farmers, who face the consequences of product rejections without a clear understanding of where or why problems occurred.

Our goal is to solve this problem by providing a solution that offers visibility into two critical stages: the official record of product quality conditions at the time of leaving the farm and advanced tracking that goes beyond simple geographical location, including monitoring shipping conditions like temperature, humidity, and light exposure.

This approach gives farmers a powerful solution to track the quality of their products at the time of shipment and facilitates the identification of issues during transport.

If a product does not meet the buyer’s expectations upon arrival, the farmer has detailed data to analyze and understand what might have gone wrong.

Moreover, complete visibility into the transportation and delivery process allows farmers to optimize their logistics operations. With precise data on shipping conditions and product status, they can make informed decisions on the best way to ship their products, reducing freight costs and minimizing the risk of rejections.