Last year, the A.P. Møller-Mærsk Group asked experts to predict some of the challenges the fruit and vegetable industry is expected to face in 2024. The consensus was that supply chain disruptions and climate change would pose the biggest hurdles for businesses in the sector.
At the recently held Fruit Logistica 2024 in Berlin, we spoke to several fruit and vegetable growers, importers, and exporters to see how last year's predictions are shaping up and what trends they see in the coming months.
Achieving resilience in the face of disruption
Global supply chain challenges affect companies regardless of industry, and in our sourcing whitepaper, written in collaboration with Reuters, 26.4% of companies said they expect significant global logistics disruptions going forward.
For the fruit and vegetable industry, global geopolitical situations and the consequent supply chain disruptions seem to be the biggest threats, requiring them to increase their resilience and agility.
Mario Hernández, President Sourcing & Supply Chain for One Banana: "At One Banana, we source bananas, mainly from Guatemala and Ecuador to the EU. Due to the situation in the Red Sea, at the other end of the world, we saw challenges related to repositioning empty containers in time. Closer to home, Panama Canal situation caused issues with getting our products to market in time. To compensate for logistic hiccups, we are looking to utilise cold storage facilities and build up inventories in key markets, but all of that needs to be done in balance, as we are dealing with fresh fruits with limited shelf life."
Supply chain disruptions don't only happen on the ocean side but can affect other modes of transport and lead to long-term changes for the business. The key to a successful strategy in dealing with disruptions is to keep an open mind to new solutions, and find the right partner, with the right expertise, who can help deliver the solution.
Planning for unpredictable weather
Certain weather conditions at the time of growing or harvest can make or break the crop season. Last year, extreme weather conditions in Spain led to a decrease in production of both fruit and vegetables and resulted in the smallest citrus crop in the past decade. Likewise, very large crop output can lead to oversupply, putting pressure on prices and potentially creating waste.
For more information: maersk.com