Los Angeles, California. ProducePay, an agriculture marketplace dedicated to providing trade protection, capital, and market insights for members of the produce supply chain, will reinforce its strategy and increase the capital for avocado growers in Latin America. The company’s decision obeys an in-depth analysis in which the consumption of this fruit among American consumers will increase uninterruptedly from this year and until 2030.
“The avocado supply chain has had many challenges over the last few months, not only because of the temporary cease of imports from Mexico, but also caused by an increased consumption of this product in the American homes”, said Pablo Borquez, CEO and Founder of ProducePay. “US buyers will need a better grower sourcing, in order to have the appropriate quota of avocado to supply the demand of the next eight years”.
According to the U.S. Department of Agriculture (USDA), in 2021 alone, the internal production of avocado was near 132 tons, while the imports were above 1.2 millions of tons. Likewise, while the internal production gives a greater volume from April to September, the imports are necessary to cover the demand between October and March.
Likewise, the per capita consumption for avocado in the US is expected to reach 11 pounds in 2026 and given the tendency of an 8% annual increase, ProducePay’s forecast is for this consumption to increase up to 18 pounds in 2030, similar to Mexican per capita consumption.
“Our mission has always been to find, finance, and fulfill grower supply for importers of fresh produce. What we have seen in the fresh produce industry nowadays is that younger generations will increase the American consumption of avocado, since they consider it as a part of a healthy lifestyle”, mentioned Olmo Bastida, Agricultural Exports Specialist at ProducePay.
For this reason, ProducePay will increase the capital destined to avocado growers in Mexico and South America, allowing them to obtain up to USD 5 million dollars in financing, twelve months before their harvest. Additionally, the company will redirect its efforts to attract more avocado producers to its Marketplace, for American buyers to access a larger network of pre-vetted growers.
Moreover, with ProducePay’s most recent launch, Quick-Pay+, avocado growers will be able to receive 96% of their shipments value in 24 hours. This will lighten the burden of buyers regarding payment and will allow them to focus on selling their product.
About ProducePay
Made by growers for growers, ProducePay’s vision is to make fresh produce accessible to all.
ProducePay is an AgTech startup committed to building a better supply chain for fresh produce, one that places trust at the center of every transaction. It is the fastest-growing provider of capital, market insights, and trade protection for growers of fresh produce. Through its products Marketplace, Grower Financing, Business Insights and Market Reports, ProducePay has the mission of strengthening relationships between growers, shippers, retailers, and consumers of fresh produce in the United States and Latin America. https://es.producepay.com/
