Company
Videxport
Location
Sonora, Mexico
Profile
Table grape grower
Challenge
High volatility limited growth and expansion.
Solution
Predictable Commerce Program
Videxport is a Mexican grower based in Sonora, Mexico, specialized in the cultivation and marketing of an array of high-quality fruits and vegetables, and one of the top table grape exporters in the country.
The challenge:
High volatility in table grapes creates a growth hurdle.
“Like many growers, we wrestled to have certainty on our income. We needed strategic working capital to be highly effective, but we also needed partners who truly understood our position and could strategize with us.”
Gilberto Salazar
CEO of Videxport
Videxport was facing the dual challenges of financial uncertainty and an inability to grow their production capacity or invest in operational efficiencies. They wanted to effectively manage their operations and deliver high quality produce, but they lacked a stable cash flow, income or working capital to do so. As we all know, the produce sector wrestles with inherent volatility; incomes fluctuate significantly due to variable market prices and the substantial upfront investments required for farming operations.
Table grapes specifically are one of the most volatile commodities within the fresh produce industry and 2023 proved to be a particularly difficult season in the US and Mexico because of the extreme weather patterns caused by El Nino.
In the case of Videxport, the lack of liquidity during the production often left them with inconsistent operations. Additionally, fluctuating market prices added another layer of complexity, making it difficult for Videxport to predict their production schedules, threatening not only the physical production of crops but also the financial planning and stability of the company.
The solution:
Stable income and growth capital through a Predictable Commerce Program.
“Our collaboration with ProducePay has been transformative, providing us with the financial robustness and the strategic program needed to not only navigate but thrive.”
Gilberto Salazar
CEO of Videxport
Videxport became part of ProducePay’s Table Grape Predictable Commerce Program, which allowed them not only to build strategic relationships with top retailers and marketers in the US, but also committed volumes and prices. This ensured a more consistent income throughout the 2023 table grape season, drastically reducing the unpredictability in their supply chain.
By being part of the Predictable Commerce Program, Videxport not only strengthened their cash flow position, but now with a stable income – thanks to the committed volumes and predictable pricing – Videxport was also able to invest in operational efficiencies and growth expansion.
How did Videxport achieve this?
Securing an
off-taker
With commited volume and pricing, as well as the necessary upfront capital to ensure operational continuity to address cash flow fluctuations.
Avoiding retail rejections
Enhanced QC allowed for the early detection of produce that did not meet their buyers’ specs, enabling diversion to alternative market opportunities.
Getting paid
faster
Received payment as soon as their shipments arrived at the packing house, allowing them to promptly pay their workers and suppliers.
