Fresh produce Profit Analysis App: Understand which fresh produce lines really make profit for your business by analyzing delivery costs, packing, packaging, overheads, and sale prices.

99% less fresh produce packing waste

Accurate fresh produce & food inventory management reduces waste through better FIFO stock rotation, stock-takes, and inventory alerts. RFID pallet control (optional) for precision inventory tracking. 

Save time packing fruit & vegetables

Increase the efficiency of fresh produce inventory using options like scanning incoming bar-codes to reduce data entry & errors, integrate with scales for automatic weighing, ore RFID for automatic fresh produce inventory tracking.

Better fresh produce quality control

Guarantee the quality of your fresh produce packing with flexible fresh QC testing systems from your phone or tablet. Customer feedback management, supplier quality control and more...

Reduce fresh produce packing errors & control production

Project required inventory (and shortages), schedule orders to be packed in batches , automatic alerts to prodution line managers.

100% accurate fresh produce order shipping

Shipping teams are guided through the dispatch process from picking using a phone or tablet (optional bar-code scanning), automatic picking, thru bill of lading, invoice, and automatic shipping notifications for customers, transport, and sales teams.

Reduce fresh produce packing administration costs by 40%

Automatic generation of fresh produce labels, bill of lading, invoice, picking documents and more; reduces administrative burden.

Easy audit & recall systems reduces compliance costs.

Faster fresh produce inventory storage  inventory

Accurate fresh produce & food inventory management delivers reduced waste and increased employee productivity. Manage FIFO, improve stock-take accuracy, scan harvester data, and keep a watchful eye on your inventory... Easy stock-take identifies shrinkage and helps reduce waste from ageing. 

100% accurate fresh produce traceability

Maintain strict fresh produce traceability and high food safety standards always. Perform recalls based on lot/batch, pack date, invoice #, inventory #, pallet #, delivery date, purchase order #, or perform a recall on your own user defined data. Perform instant recalls both up and down the supply chain. Makes audits easy and instant. COVID-19 food safety & auditing available. 

Reduce fresh produce waste by 99%

Inventory control ensures there is no 'shrinkage', food inventory is FIFO managed, and expiring inventory always monitored.

Reduce administration time by 60%

Automatic paperwork, labels, and reporting reduces the burden on administration teams and saves everyone's time.

Better fresh produce quality now

Quality control and food safety has never been easier with industry standard quality tests, food safety checklists; or configure your own tests. 

100% accurate orders!

Guarantee only the correct inventory is shipped for each order, on time, every time.

Fresh produce analysis app:

Farmsoft fresh produce packing app is for fruit & vegetable packer, processor, import/export.  Full fresh produce traceability, auditing, inventory control, and fresh produce business management app.

Quality inspection for fresh produce

Consistent and accurate quality control ensures higher customer satisfaction and adherence to industry, de-facto, and in-house quality control standards. Track supplier quality performance, customer feedback & complaints, create QC tests for any part of the fresh produce & food manufacturing process (incoming goods, raw materials, finished goods, expiry test, export/shipping tests), daily factory hygiene, machinery calibration, employee checklists... 

Fresh produce logistics

Manage orders, pack to order, picking and auto picking, dispatch & shipping process. Generate invoices, bill of lading, pick slips, export documentation and other sales documents... Dispatch teams are guided through the dispatch process ensuring every order is filled perfectly, and on time. Paperwork such as BOL, freight documents, export documents are automatically generated based on the customer and destination to guarantee no rejected shipments or issues at borders.

Fresh produce labels

Generate fresh produce SSCC pallet labels, GS1 case & PTI labels, bin labels, batch labels, traded unit labels, harvest labels and more. Use the built in industry standard labels for Walmart, Woolworths, Aldi, Tesco, Loblaws etc - or design your own with the built in label & report designer. Our team can design all of your fresh produce documents to ensure farmsoft matches your requirements perfectly.

Fresh produce packing control

Sales, Quality, Profit, Dispatch, Pack, Farm...... Dashboards for sales teams provide instant impressions of customer orders and current inventory levels. The dispatch dashboard helps plan shipments, order of loading, and transport companies & drivers... The Profit analysis dashboard shows margins per unit and most profitable customers. Use our API to access your data however you like.

Fresh produce batch packing

Project required raw materials needed to pack/manufacture orders, potential shortages, schedule multiple orders to be packed in batches on selected production lines with a few clicks, automatically send new job alerts to managers, schedule additional harvests, analyze outstanding orders. Manage entire packing and manufacturing process with ease.

Fresh produce alerts monitoring

Automatic alerts for shipments can be sent to customers, transport providers, or even team members. Every time a batch is finished processing, receive an alert with the pack-out breakdown and percentages of grades & quality and waste. Alerts can include simple shipment notifications, or even invoices and original order details. Other alerts include order changes/modifications, yield reports, new order alerts, and low inventory alerts... 

Farm app option

Implement the farmsoft Farm Management suite to provide a comprehensive integrated business management solution from seed to plate. Includes automatic task management, best practices, budgeting, farm inventory, PHI enforcement, audits, residue reporting, USDA reporting, dashboards, recalls and more... 

Fresh produce supplier quality control

Suppliers must know that your business is measuring and tracking their performance. Any trends that effect the quality of fresh produce can be quickly detected, automatically traced back to the fresh produce supplier (especially if a result of a customer complaint / feedback), management and purchasing teams are automatically alerted when a supplier quality issue happens. Quantify your suppliers quality using the Supplier Quality Dashboard. 

Fresh produce finance apps

Share data with your Xero finance app, Quickbooks, MYOB, SAGE, using our API, or request our team perform a custom integration for your fresh produce company. This is an optional module, please ask your consultant for additional details and discuss your specific requirements, additional costs will apply for integration with your chosen finance app. 

Fresh produce RFID

Automatic tracking of each pallet’s exact location. Makes loading orders accurate and easy, stops errors during shipping. Very low costs to setup your hardware using farmsoft’s innovative RFID for fresh produce solution. Pallets put onto truck are auto added to order, and checked for accuracy. Pick up a pallet and its RFID instantly selected. Add pallet/bin to production line and its auto added to batch for traceability.

Fresh produce API

Integrate with virtually any other app or software solution using the farmsoft API. It's open! Anyone can use it. Your in house I.T. team, or any external I.T. vendor you want to help you with integration. Add your own reports, extract special data, or even create new interfaces between farmsoft and any app such as accounting, payroll, B2B, B2C. Other integration in farmsoft includes the ability to integrate with selected weigh scales to capture fresh produce net delivery weights.

Fresh produce bloch-chain

Increase customer confidence and prove the credentials of your traceability integrity and transparency with block-chain ledger technology.   We use the blockchain solution. (Optional module not included with standard Packing / Food Manufacturing ERP solution).

Improve fresh produce production planning

Efficient management customer orders, and the ability to analyze orders gives you new production planning tolls in farmsoft. Ensure each order is filled to exact specifications, on time, every time. Increase customer satisfaction and retention, and reduce stress in the packhouse with confident production planning using work orders/batch orders, sales contracts, sales orders, and sales order items. Are you manufactruing or processing chili products? Try farmsoft for chili processing. 

Accurate fresh produce traceability

Quality officers are guided through the quality control process, presented with images and instructions for each test, ensuring they know what to look for at all times, corrective actions are presented if a quality issue is detected. This makes training new fresh produce quality control officers fast, and ensures consistency in the quality control management processes for incoming fresh produce, post pack/post processing, storage, and dispatch. 

Efficient use of fresh produce cold stores

Maximize your cold store use and rotation of stock using farmsoft's pallet maps, and precision traceability tracking with expiring inventory reminders.
Cold store management software for fruit importers, exporters, packers, cross docking, and short and long term fruit storage.

Fresh produce analysis app:

The farmsoft inventory control app provides business wide quality management inspection systems for fresh produce, food manufacturing, seed processing, meat packing & processing, and flower packing.

Tesco food safety compliance food packers
Tesco food safety compliance for food manufacturers, packers, import, export, wholesale.  Tesco customers expect us to only sell products made to the highest quality and that are responsibly sourced. They trust us to ensure that all our products are safe and comply with all the applicable laws and regulations.

Within Tesco we have a number of highly skilled teams and colleagues across the globe that are dedicated to ensuring our customer expectations are not only met but exceeded. They manage the quality of products from the original product concept right through to our stores and customers.
Although this page is based on our UK business, a similar approach is taken across our international markets whilst ensuring all legal and cultural differences are acknowledged and catered for.  Through understanding customers and their needs, product and market trends our expert team of developers work hard to bring great quality, innovative and value for money products to the market; our dedicated team of food researchers and chefs constantly review food trends and bring new food ideas to life to meet those customer needs.
Fresh Produce Bar Code Scanning

Fresh produce bar code scanning in agriculture easily delivers improved traceability in the fruit boxing and fresh produce packing space.  The FarmSoft team has add new features to the FarmSoft packhouse mobile (smart phone, iphone, tablets, and PDA’s) interfaces and new interfaces for in line bar-code scanning to allow rapid recording of packed fruit and vegetable via bar-code systems. Implement FarmSoft to make your fresh produce fruit packing easier and more efficient. FarmSoft delivers bar code scanning for packing sheds, packhouses, and fruit packers, exporters, importers and wholesalers.

FarmSoft fresh produce bar code scanning allows users to choose from a mobile interface that allows smartphones and PDA devices to scan boxed and packed fresh produce to record pallet contents. Fresh produce inventory and stock management with bar code systems ensures traceability and accuracy. FarmSoft’s bar code software for pack sheds makes fresh produce inventory control easy.

Bar-code traceability

FarmSoft bar code traceability is rapid to implement, and easy to maintain. Implementing FarmSoft bar code traceability for fresh produce processing delivers increased accuracy of traceability, easy inventory management, and can result in reduced fresh produce waste.
FarmSoft bar code traceability provides multiple fruit labeling solutions which can be tailored to meet client inventory handling requirements.
Bar code traceability
FarmSoft bar code traceability provides a comprehensive fruit traceability system for packhouses, pack sheds, and fruit and vegetable processors. FarmSoft bar code traceability makes fresh produce inventory handling easy! Contact FarmSoft today to receive these benefits.
Case level traceability

Case level traceability brings fresh produce processors, packers, and marketers easy and rapid traceability. Implement FarmSoft in no time at all, and start reducing processing waste!  Easy to deploy, farmsoft case level traceability is the best friend of any company looking to improve traceability in their food / fresh produce processing enterprise. Farmsoft delivers tangible improvements in food safety compliance and standards maintenance. Implementing farmsoft case level traceability for fresh produce processing delivers increased accuracy of traceability, easy inventory management, and can result in reduced fresh produce waste.

Farm to fork traceability for reliable food safety and best handling practices for fresh produce – while reducing waste and increasing efficiency!  FarmSoft’s farm to fork traceability solution delivers bullet proof fresh produce traceability management in every way. FarmSoft’s farm to fork traceability solution channels staff through the correct farming and fresh produce handling processes ensuring maximum food safety and traceability is being maintained at all times.

Combine both FarmSoft Farm Software AND FarmSoft Fruit Packing Software to create a complete farm to fork traceability solution.
In addition to the traceability features of FarmSoft, the system also provides a comprehensive fresh produce business management suite that takes care of every section of your business including: quality control, invoice, dispatch, sales, contracts, staff labor, packing labor, packhouse reporting and more.

Fresh Produce Traceability India – FarmSoft’s fresh produce management software brings new levels of traceability and efficiency to Indian farming and fresh produce packing, processing, and exporting.  FarmSoft guides users through the fresh produce handling procedures to ensure the safest, highest quality fruit and vegetables with minimum waste. From quality control, waste analysis, to fresh produce labeling – FarmSoft delivers for professional fruit and vegetable processors and packers. Download FarmSoft’s Fresh Produce Traceability India specifications here.

FarmSoft India
Professionally manage and monitor all post harvest processes including quality control, storage, inventory, sorting, grading, washing, packing, sales, invoice, and dispatch.
Traceability requirements matrix fresh produce

Traceability requirements matrix fresh produce packing, processing, value adding.   Traceability requirements matrix fresh produce
Traceability requirements matrix in fresh produce

Makes fresh inventory food safety compliance & audits easy.
Traceability requirements matrix fresh produce
Traceability requirements matrix fresh produce.
Blockchain for fresh produce traceability

Visit our official fresh produce blockchain site for the latest fresh produce blockchain information.
Ask your farmsoft consultant if your chosen block-chain protocol or format is supported.
Blockchain – Essential for Fresh Produce Traceability
The Produce Traceability Initiative, was designed to help the Produce Industry maximize the effectiveness of current traceback procedures, while developing a standardized industry approach to enhance the speed and efficiency.
Food Traceability Software

FarmSoft food traceability software delivers bulletproof food safety and reduces business risk.  The FarmSoft is built on a solid platform of food traceability and safety standards. FarmSoft guides users through the food processing and manufacturing phases. The FarmSoft food traceability software suite specializes in processing and manufacturing involving fresh produce, fruit, and vegetables. Dried, cured, juiced, pulped, or even made into value added jelly and jams. Click here to download food traceability software specifications.

Fresh Produce Traceability Bar-code

Fresh Produce Traceability Bar-codes for fruit & vegetable packers, processors, and food manufacturers.  Fresh Produce Traceability is much more than applying a label to the packed fruit or vegetable. FarmSoft delivers strict fresh produce traceability guidelines for supply chain end to end food safety & transparency.

Ensuring that the traceability chain has no gaps in it is important to reduce the risk exposure of your business. If there is a breach in the traceability chain, then the whole traceability enforcement system has failed and becomes a pointless expense. FarmSoft ensures 100% accuracy of traceability throughout the entire life-cycle of fresh produce, from pre-planting, to post sales traceability guideline adherence. FarmSoft ensures your business is not unnecessarily exposed, while minimizing compliance costs. 

GS1 Traceability for fresh produce

FarmSoft GS1 traceability system does much more than just print labels! Manage your inventory, maintain traceability, pack, process, and store fresh produce. Perform sales and dispatch and invoicing. Reduce fresh produce waste.  FarmSoft GS1 traceability system does much more than just print labels! Manage your inventory, maintain traceability, pack, process, and store fresh produce. Perform sales and dispatch and invoicing. Reduce fresh produce waste.
farmsoft makes fresh produce GS1 traceability easy!
Increase the efficiency of fresh produce deliveries using options like scanning incoming bar-codes to reduce data entry, save time, and reduce errors. Scan incoming fresh produce deliveries or use "one touch" rapid inventory creation screens to increase accuracy & reduce data entry time.

FarmSoft track and trace provides end to end supply chain transparency for fresh produce traceability. Implement FarmSoft to guarantee the highest level of traceability both up and down the supply chain!  FarmSoft track and trace is a comprehensive fresh produce business management solution that caters for all operational processes from quality control, inventory, sales, dispatch, and orders. FarmSoft even provides food manufacturing, good manufacturing management, and value adding features. FarmSoft track and trace software provides many innovative features to bring easily maintained benefits to the fresh produce processor, packer, and marketer.

Using the FarmSoft traceability code, customers, and end consumers can track and trace fresh produce simply by scanning a QR code with their smartphone. The track and trace system will then present the customer/end consumer with the traceability or marketing information as chosen by the packer. This helps to improve customer confidence and provides supply chain transparency to promote the concept of food safety.
Produce Traceability Initiative PTI

Produce Traceability Initiative (PTI), HACCP, GlobalGAP, CanGAP, EuroGAP, BRC, Bio-Terrorism, ISO and more…Simple PTI solution - software for fruit and vegetable processing

Farmsoft delivers opportunities to reduce waste during the packing, processing, storage, and distribution phases. By enforcing best practices, FIFO (when practical), inventory expiry monitoring, and easy stock takes - your company has every opportunity to minimize waste and maximize profit. From bar code managed inventory, inventory labeling, to 3D pallet storage, farmsoft delivers on reduced waste.
Perform recalls in seconds, with the full confidence of accuracy and reliability. Minimize risk by ensuring accurate traceability is automatically captured. Pass audits with ease & reduce compliance costs using farmsofts traceability guidelines. Trace fresh produce up and down the supply chain, over multiple traceability hops. Instantly produce spray records, residue analysis, soil analysis, and any other farm traceability records if you use our farm solution.

Inventory traceability software for reduced post harvest waste

Inventory traceability software
The purpose of the Fruit & Vegetables implementation guidance is to provide best practice guidelines for industry-wide adoption for New Item Listing and update of existing assortment. This guide provides support to companies seeking to electronically exchange fruit & vegetable product information in accordance with GS1 Standards. The guidance applies to the full range of fruit & vegetable trade items. The guide outlines which attributes should be used for fruit & vegetable items and recommends best practices for the use of these standards to exchange static fruit & vegetable data between suppliers and retailers. Today, different platforms as well as different means to item identification exist when it comes to data sharing. Traceability case study for Paramount Citrus, Traceability case study for Mother Earth Organic Mushrooms, SunFed visibility of produce throughout supply chain with case and item level traceability. JemD Farms, greenhouse grower with GS1 Standards and the Produce Traceability Initiative.
The use of GS1 Standards, specifically for Identification, Master Data Alignment, Traceability, Track and Trace, Barcode labels and EDI transactions, provides a common platform to help supply.
Simple traceability solution

Simple traceability solution - software for fruit and vegetable packing
Processors and packers involved in the fresh produce industry deal with a lot of compliance and traceability issues. If the worst happens and a product recall needs to be effected immediately, they have to be able to trace where the raw ingredients of fruit and vegetables came from, what was done to them, when and where the finished products have gone.
Fresh produce processors and packers manufacturers are subject to quality audits and they can often practice recalls and food safety incidents. From a business perspective, these activities often can be expensive and cumbersome to comply with, without the use of a simple traceability solution that is integrated into the businesses fresh produce handling processes and guidelines.
As a supplier to the food manufacturing or fresh produce processing or handling and retail industry, quality control and traceability are key for any manufacturer. Farmsoft delivers solutions in Australia, USA, Canada, UK, Europe, Africa, and Asian regions. Use farmsoft to become compliant and increased efficiency.

Less waste, more traceability

Less waste, more traceability: Full featured software for fresh produce processing, packing, sales, export/import & distribution.  MINIMIZE FRESH PRODUCE WASTE

For handlers of perishable goods, reduce waste during packing, processing, cold store, order picking and dispatch phases. Enforce GMP and best practices, FIFO (when practical), inventory expiry monitoring, and easy stock takes to help minimize waste and maximise profit. Receive detailed alerts when waste is encountered through quality issues, or possible human error.
Learn more about farmsoft post harvest solutions
Manage your fruit & vegetable packing / processing operation with a simple traceability solution, or implement a comprehensive enterprise management solution. Easily comply with standards for Walmart, Tesco, Woolworths, Aldi, Loblaw, Coles, USDA, FSMA, GFSI, AANZFTA, PTI, HACCP - for full inventory traceability using PC/Mac or traceability app.

Fresh produce export documentation

Farmsoft makes fresh produce export documentation easy with new features that generate international standard fresh produce export documentation for fresh produce producers, processors, and packers.   Rapidly generate fresh produce export documentation on demand!

Farmsoft makes fresh produce export documentation easy with new features that generate international standard fresh produce export documentation for fresh produce producers, processors, and packers. The modern packing and processing facility is busy environment. Dealing with the excess of export regulations and paperwork requirements can often be a headache. Farmsoft guides users through the documentation process, reducing administration costs, and increasing productivity.
Contact a farmsoft consultant today to discuss your fresh produce export documentation options today.
Farmsoft takes the effort out of preparing fresh produce export documentation for fruit, vegetable, coffee, hop, and grain producers by generating commonly used export documentation.  

Reduce fresh produce waste, Orders - Quality - Production - Sales & shipping - Recalls & audits - Dashboards, analysis, business intelligence.   Reduce fresh produce waste, make production and shipments 100% accurate

Strict inventory management ensures FIFO and no orphaned fresh produce inventory, no loss of inventory due handling processes.
Production management ensures every order is filled accurately, dispatch is planned in advance, and correct shipments dispatched on time, every time.
Sales dashboards help marketing and sales teams plan orders, schedule production, and identify any fresh produce that needs to be sold before it becomes waste.
A choice of interfaces to suit every environment gives your team a simple fresh produce business management tool.
Manage fresh produce inventory stored at an unlimited number of sites / packhouses, and unlimited warehouses
Manage and monitor the storage and status (ie: in processes such as sorting, grading, cooling, ripening etc) of all fresh produce inventory, regardless of its state.

Fresh produce Profit Analysis App:
Understand which fresh produce lines really make profit for your business by analyzing delivery costs, packing, packaging, overheads, and sale prices.
Gain a deeper insight into the profitability of individual product lines in your fresh produce business... Use farmsoft to calculate all costs, from the entire farming process (requires you to use farmsoft Farm Management), direct raw material purchase costs, freight to individual customers, fixed overheads, packaging material, labor and more.

Why continue packing and selling a product line if its unprofitable?

With farmsoft's Profit Analysis Dashboard for fresh produce, you can quickly determine each product lines profitability.

The Profit Analysis Dashboard also takes into account transport costs that your fresh produce business pays; this gives you an easy to interpret insight into the true profitability of each fresh produce line by customer.

Making these calculations from your financial software is often very time consuming or not possible in some cases. Using farmsoft you can have real time access to fresh produce profit analysis data at any time, compare profit over selected date ranges, for selected fresh produce lines and more...

Make more profitable product line decisions
Continue producing a selected fresh produce product line or not? Using farmsoft's fresh produce Profit Analysis Dashboard you can make more profitable product line decisions at all times.

Fresh produce Profit Analysis
Profit analysis for fresh produce wholesale, packer, processor, import/export
In the years after 2000, business intelligence software producers became interested in producing universally applicable BI systems which don’t require expensive installation, and could hence be considered by smaller and mid-market businesses which could not afford on premise maintenance. These aspirations emerged in parallel with the cloud hosting trend, which is how most vendors came to develop independent systems with unrestricted access to information.

From 2006 onward, the positive effects of cloud-stored information and data management transformed itself to a completely mobile-one, mostly to the benefit of decentralized and remote teams looking to tweak data or gain full visibility over it out of office. As a response to the large success of fully optimized uni-browser versions, vendors have recently begun releasing mobile-specific product applications for both Android and iOS users.[6] Cloud-hosted data analytics made it possible for companies to categorize and process large volumes of data, which is how we can currently speak of unlimited visualization, and intelligent decision making.

In 2019, president and CEO of the United Fresh Produce Association (UFPA), Tom Stenzel, described the fresh produce industry as “the ultimate supply-and-demand economy.” This is a neat summation of the unique profit challenges faced by fresh produce businesses in the 21st century. In this industry, strategy is overwhelmingly influenced by demand and the window of profitability for produce is very small.

It’s this combination of factors that makes businesses vulnerable. These vulnerabilities hand more power to retailers, allowing them to drive down the prices they pay and cut the profit margins of producers. In this environment, smart and, crucially, dynamic pricing is essential for any fresh produce business to maximise profit potential. This article sets out the tools required to build a smart pricing strategy.

Can you accurately allocate production costs?
In an ideal world, the basis of your pricing strategy would be a firm grasp of what your product has cost you to produce. However, it can be easy to undervalue the resources that have gone into a line of fresh produce by the time it is ready for market.

Direct costs associated with a range of produce will include:

The price of the seed and fertiliser
Any regulatory costs associated with the product in question
Indirect costs will be more difficult to calculate and may include:

Machinery costs and depreciation
Labour (both contracted and your own)
Property costs and maintenance fees
Combining all outgoings for a product line and dividing by its yield will allow you to determine the cost per unit or kg. However, this is not a realistic aim for many businesses - calculating production costs to this degree of accuracy is very difficult without large amounts of yield data and sophisticated software to interpret it.

It is at this early stage that an integrated approach to data recording can reap the biggest rewards when pricing produce.

Strategies for selling to retail
It’s counterproductive to consider strategy in terms of pricing high vs pricing low, for two main reasons:

As discussed before, retailers are in control when it comes to the rough value of produce at any given time.
While pricing at very close to or below the cost of production (loss-leading/ penetration pricing) can help build market share and relationships with wholesalers, in an industry where profit margins are so slim this is dangerous. Moreover, it devalues the produce being sold in a wider sense, deflating the market.
Instead, we’ll assess three common pricing strategies that focus on smart and subtle positioning rather than significant hikes or cuts.

Flexible pricing based on supply and demand
Pricing in line with demand is a strategy based on making logical decisions relative to the real-time state of the market. Rather than targeting a set return on investment, this strategy aims to hit a price sweet spot between maximising profits and appealing to the retailer or wholesaler.

To execute a supply and demand strategy well, accurate market insights are essential. Obtaining this insight is likely to lead to additional expenditure which will have to be priced into the cost of production.

In theory, the demand of any product should allow for it to be optimally priced in line with the market. However, it’s necessary to appreciate that this kind of value-based pricing is ultimately led by the consumer. In the supply chain, fresh producers are the party most removed from consumers, meaning changes in demand take time to become apparent by which point it may no longer be advantageous to change pricing.

This strategy requires growers to constantly be flexible - with what they grow, in what proportion and how they price it. Some fresh produce businesses simply can’t shoulder that much uncertainty.

fresh produce pricing
Fresh produce profit analysis
Competitor-focused pricing
This strategy entails using the pricing of rival fresh producers as a guideline. Of the pricing methods we’ve covered, this is arguably the most suited to less established businesses trying to nail down the best price for their goods. This is because of its simplicity and the relatively low risk.

Market data is again critical. Some is publicly available - for example the UK government records data on the average weekly wholesale market prices of some fresh products.

However, this kind of data can be problematic, with markups varying from wholesaler to wholesaler. It may be necessary to conduct less formal research by talking to fellow fresh producers to determine the consensus within growing communities.

Despite this, using rival growers to set pricing is not viable in the long-term as a lone strategy. It removes the opportunity to steal a march on the competition while effectively turning the market into a “race to the bottom” on pricing.

Cost-plus pricing
Essentially, a cost-plus model involves setting a fixed markup and pricing consistently in this manner. For example, if you settle on selling tomatoes to wholesalers at 35% over the cost of production, a batch which cost £0.75/kg to produce would be priced at around £1.01/kg.

Cost-plus pricing is simple and easily justifiable to the purchaser. A fresh producer opting for a cost-plus strategy would reason that staying true to what they value their product at will deliver greater profits in the long run.

However, the strategy requires fresh producers to know their cost of production to a high degree of accuracy, something not all are equipped for. It also means the product needs to be of higher quality or have extra inherent value over its cheaper competitors to be attractive.

This means cost-plus pricing will be more effective for businesses with access to and understanding of enough production cost data, and on products which are less price-sensitive.

How farmsoft can help price & analyze produce profitably
While cost-plus pricing is the strategy most dependent on the accurate calculation of production costs, knowing how much each line of produce costs to bring to market is always essential to getting a fair price.

Harnessing all the information needed to produce this and using it to provide genuine insight is a major undertaking, and highlights the need for an integrated approach to fresh produce. No aspect of a fresh produce business is more sensitive to the real-time situation than when it comes to pricing.

Farmsoft (ERP) software provides the most effective way to accurately track real-time cost of production. It can empower businesses with the true value of their produce, allowing them to price appropriately and hold firm against retailers who value it too low.

Fresh produce Profit Analysis
This website is dedicated to the fresh fruit and vegetable professionals: growers, shipping companies, wholesalers, ripeners and retailers
Fruit Profits is a fresh produce advisory company. We provide you with updated information on fresh produce innovation, technology and marketing. Learn new techniques to deliver better quality produce, with better taste & appearance, improve your cold chain and reduce your costs and fruit losses. Applying them will increase your sales and profits

Welcome to Fruit Profits!
Hello, my name is Manuel Madrid. Based on 25 years´ experience in technology for the fresh produce industry, I have often noticed that many excellent fresh produce companies have a huge sales growth potential, but that potential is not always fully realized.

Why? Because they are not always aware of the latest techniques on fresh fruit supply chain: harvest, packaging, cold chain and ripening
Being on top of a dynamic fresh produce operation requires all your attention daily. So Fruit Profits searches and brings you specific fresh produce know-how to achieve your company´s full sales potential

That is what we aim at Fruit Profits :
We are a fresh produce consulting firm. We bring you updated information about fresh produce technology and innovation. We help our clients implement these innovations in their business in the most efficient way.

Some of the topics we specialize in include:

- reducing fresh fruit and vegetable losses in transport and storage
- cost analysis and improvement of the fresh produce value chain
- controlled and modified atmosphere storage
- introduction of innovative fresh products to the market
- ripening technology for ready-to-eat fruit
- marketing techniques to increase fruit sales at retail point-of-sale
- improving fruit quality through changes in harvest and ripening processes
- optimizing packaging design
- new variety search and evaluation
- evaluation and development of new production areas worldwide
- technical due diligence and investment valuation for agribusiness investment funds

There is a big business potential in postharvest technologies. Today fruit and vegetable spoilage in the harvest and transportation chain has been estimated in up to 20% in developed countries, depending on the commodity. In developing countries they can reach up to 40% to 50%.

Often fruit is not thrown away but it is downgraded in quality category. Downgraded fruit from Class I to Class II is often not accounted separately and could add up to an additional 20%. These losses can be reduced up to 90% by improving the cold chain and handling processes, bringing this profit directly to your bottom line

Another business opportunity lies in optimizing fruit quality and ready-to-eat whole fruit. Fruit at the right ripening stage sells 25-33% more than green, hard fruit. By improving your harvest and ripening techniques in banana, mango, avocado, pear and other fruits, you can increase your sales and profits.

Fruit Profits provides you with an independent assessment of the latest technologies that can benefit your operation. This is unbiased information, since we are not sponsored by suppliers or equipment manufacturers.

We have worked with the most diverse crops: tropical fruits ( banana, pineapple mango...) and subtropical products, berries, vegetable crops, melons, stone fruits, pome fruits, citrus, grapes, ...

As an example, you can download the free report “Seven key techniques to reduce fruit losses and improve quality at arrival”. This report provides you with useful tools and information on how to handle differently some aspects of your operation, that can directly result in an improved financial bottomline.

In an uncertain economy, does fresh produce spoil revenue growth?
The future of fresh
​Regardless of the economic cycle, people need to eat. As such, produce is a resilient fresh-food category.

CURRENTLY, consumers are showing strong interest in fresh fruits and vegetables, thereby helping provide ample growth opportunities for companies in the fresh food ecosystem.1 But, with mixed economic signals heading into 2020, a question arises: Does fresh produce spoil revenue growth? In periods of economic expansion (as experienced in recent years), consumers tend to allocate more dollars to premium products. However, spending can wane due to economic uncertainty.

Methodology: To address this question, we analyzed the US Consumer Expenditure Surveys data2 for produce. We compared it to processed food, alcohol, and nonfood categories (apparel and fashion, health care, and entertainment). We examined CAGR from 1995 to 2017, comparing growth during periods of economic expansion vs. recession.

Learn more
Explore the consumer products and retail collection

Read more about the Future of Fresh

Learn about Deloitte’s services

Go straight to smart. Get the Deloitte Insights app

Our analysis reveals a nuanced picture. Overall, from 1995 to 2017, consumer expenditures on produce grew 1 percent CAGR. Growth also occurred in alcohol, apparel and fashion, entertainment, and processed food. Of note, only health care (at 2 percent) exceeded these categories (see figure).3

During the Great Recession of 2007–2010, only fresh fruits and vegetables and health care grew (1.4 percent each). Beginning in 2011, most categories rebounded to pre-Recession levels. However, produce and health care not only came back, but far exceeded pre-Recession levels (at 2.3 percent and 4 percent, respectively).

During the 2000–2001 recession, all categories experienced similar fluctuations. And while fresh fruits and vegetables declined 3.1 percent, it was likely due to the nascency of health and wellness trends which became more prevalent starting in 2010.4

Regardless of the economic cycle, people need to eat. Our analysis reveals that, people are not going to give up their fruits and vegetables during a downturn economy. Indeed, produce is more resilient than both the food and nonfood categories examined. In addition, the segment has kept pace with the health care sector.

The solid growth of produce is likely supported by two factors. First, by evolving efficiencies in supply chain processes that have led to produce being offered at a lower cost to the consumer.5 Second, by consumers’ growing interest in health and wellness.

Fresh foods are the primary driver of growth in retail stores, accounting for 49 percent of all dollar sales growth in the fast-moving consumer goods sector.6 Strong upside potential exists for fresh produce due to not only consumer demand, but also increased distribution in convenience stores,7 quick serve restaurants,8 retail pharmacies,9 and several hospital systems experimenting with “food pharmacies” that link the importance of diet with health. With projected growth of 2.4 percent through 2023,10 produce may represent an attractive proposition for everyone in the fresh food ecosystem as a hedge during periods of economic uncertainty.

Profit Margins for the Food and Beverage Sector
 Food and beverage companies represent an attractive investment option. Many of these companies belong to the consumer staples segment, which tends to be less cyclical and subject to smaller market fluctuations. One metric that investors use to evaluate companies and industries is the profit margin. It provides information about the company's ability to manage its cost and effectively price its products.

Many food and beverage companies belong to the consumer staples segment, which tends to be less cyclical and subject to smaller market fluctuations.
There are several ways to calculate the profit margin, such as gross margin, EBITDA margin, and net margin.
The core components of the food and beverage sector are food processing, nonalcoholic beverages, and alcoholic beverages.
Within the food and beverage sector, higher profit margins certainly make beverage companies look like better investments than food processing firms.
What Is Profit Margin?
The profit margin is often calculated as net income divided by the company's total revenues. If the company does not generate any revenues or the earnings are negative, the profit margin is either meaningless or negative. Investors often calculate companies' profit margins and then compare them across sector and industry averages to determine where a particular company stands in the overall distribution of margins. There are several different ways of calculating the profit margin, such as gross margin, EBITDA margin, and net margin.

Which Industries Are Part of the Food and Beverage Sector?
What exactly is included in the food and beverage sector can be somewhat difficult to define because there is substantial overlap between businesses. For example, beverage makers like Pepsi (PEP) also own other companies. Some of these firms are not in the beverage business. However, the core components of the food and beverage sector are food processing, nonalcoholic beverages, and alcoholic beverages.

To a lesser extent, grocery stores and restaurants can also be considered part of the food and beverage sector. Grocery stores are often classified as retail instead, while restaurants are frequently considered services. There is also agriculture itself, without which the food and beverage industry would not be possible. However, agriculture is quite different from most other parts of the economy.

Food Processing Profit Margins
According to CSIMarket, the gross profit margin for the food processing industry was 22.05% in 2019. That was considerably below the overall market average of 49.4%. Furthermore, the EBITDA margin for food processing was 9.56%, which was below the total market figure of 16.59%. Finally, the net profit margin in the food processing industry was just 5.16%. The net margin for the total market was once again higher, coming in at 7.81%. It is safe to say that profit margins in the food processing industry are generally lower than average. These small margins may be a result of intense competition in the industry.

Profit margins within industries can fluctuate substantially from one year to the next. However, the food and beverage sector is somewhat more stable than the rest of the market.
Nonalcoholic Beverage Profit Margins
Profit margins in the nonalcoholic beverage market tend to be much higher. Firms in this industry, such as Coca-Cola (KO), often have large economic moats. The gross profit margin for the nonalcoholic beverage industry was 54.87% in 2019. At the same time, the EBITDA margin was 25.16%, and the net profit margin was a very impressive 15.58%.