ProducePay, MAVRK Capital partner to boost fresh produce commerce

USA – ProducePay has teamed up with MAVRK Capital to provide a more stable and predictable supply chain for the global fresh produce industry.

The partnership aims to support top growers worldwide with a substantial funding commitment.

MAVRK Capital has committed at least USD 500 million in initial forward-flow capital to ProducePay’s Predictable Commerce Programs.

These programs are designed to help growers and marketers meet the year-round demand for high-quality fresh produce with stable pricing, despite the challenges of volatile supply chains.

“We’re focused on finding new ways to help growers and marketers expand while minimizing the uncertainty that has historically held the fresh produce industry back,” said Patrick McCullough, CEO of ProducePay.

“With the MAVRK Capital partnership, we’re enabling industry-wide growth by offering farmers predictability through capital, informed by decades of fresh produce experience, and with direct ties to buyer commitments.”

ProducePay’s programs provide a financing mechanism that allows growers to expand their businesses while reducing risks.

The assurance of an off taker with committed demand and pricing helps mitigate the financial uncertainties associated with harvests, lowering the overall cost of capital for the entire supply chain.

Jack Campbell, CEO of Four-Star Fruit, which owns and operates MAVRK Capital, highlighted the significance of this partnership.

“We started MAVRK Capital to meet the unique capital needs of our fresh produce grower partners. After seeing the impact of ProducePay’s Predictable Commerce Programs on creating global supply chains, we’re expanding the fund to accelerate our ability to help farmers grow and thrive.”

The new partnership builds on a successful table grape partnership between ProducePay and Four Star Fruit.

During the 2023/24 season, ProducePay’s Table Grape Predictable Commerce Program distributed over 26,000 tons of table grapes from Mexico, Chile, and Peru. This represented a sixfold increase over the previous year, despite weather disruptions caused by El Nino.

The program also achieved significant efficiencies, reducing retailer rejections by more than 80%, days in transit by 30%, and time in cold storage by 40%.

These improvements ensure a consistent and reliable year-round supply of fresh produce for retailers, resulting in less food waste and a more profitable and sustainable supply chain.

Enhanced transparency in the supply chain

This news comes shortly after ProducePay introduced a Visibility solution to enhance transparency in the fresh produce supply chain.

This new tool offers fresh produce marketers and retailers real-time monitoring and management of shipments through a centralized digital dashboard.

The Visibility solution leverages advanced technology and on-the-ground agronomists to provide greater control amid the challenges of an increasingly volatile supply chain.

The combination of Predictable Commerce Programs and the new Visibility solution underscores ProducePay’s commitment to transforming the global agricultural industry.

By ensuring the delivery of high-quality produce and reducing rejection rates, ProducePay aims to bolster grower economic stability and combat food waste.

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