Inefficiencies dog Australia’s supply chain

It is estimated that Australia’s fresh produce industry loses almost €1 billion annually due to its inefficient supply chain, which leads to 18-22% of fresh produce lost each year. This is the finding of a report published by Produce Marketing Association Australia-New Zealand (PMA A-NZ). Darren Keating, chief executive of PMA A-NZ, said, “Poor performance of the supply chain can cause visibility and trust issues, which often makes it difficult to pinpoint the inefficiencies and areas to directly target investment for improvement. The PMA A-NZ State of the Industry Report 2020 aims to provide the fresh produce with the information to identify opportunities for improvement to ensure greater returns along the whole supply chain.”

The report identifies product quality as the number-one metric for measuring consumer satisfaction with fruit and vegetables, with a product’s appearance, taste and size/shape considered the top-three elements of quality.

“Consumers want access to high-quality locally-grown produce to experience the joy of fresh. The opportunities to make improvements along the supply chain will ensure consistent quality for consumers to enjoy,” said Keating.

The report concludes that due to increasing globalisation, producers need to become more competitive to stay in the market. Supply chain costs absorb around 55% of the total product cost. What’s more trust and transparency are ever more crucial for achieving success. “Data sharing, and the challenges that come with it are consistent. From the producer to the consumer there is a desire for more information,” said Keating. This will be particularly true in the post-Covid landscape.