Driving sustainability: How demand consolidation companies are minimising fresh fruit waste 

Food waste is one of the most pressing challenges facing the global food system today. According to the Food and Agriculture Organisation (FAO), roughly one-third of all food produced for human consumption is lost or wasted globally, amounting to about 1.3 billion tonnes each year. The fresh fruit industry is particularly vulnerable to waste due to spoilage during the long and complex journey from farm to consumer’s table.

Addressing this challenge requires innovative approaches that streamline supply chains and reduce inefficiencies. Gradually, demand consolidation companies are stepping up as pivotal players in this effort by transforming how fresh produce is sourced and distributed. By shortening supply chains and utilising data-driven strategies, these companies are making significant strides in minimising fruit waste. 

Challenges in the traditional fruit supply chain 

Traditionally, the fruit supply chain involves a complex network of intermediaries. After harvesting, fruits typically pass through multiple hands, including wholesalers, distributors, and transporters. Each transfer introduces risks of damage due to improper handling, temperature fluctuations, or delays in transit.

By the time the fruits reach the Agricultural Produce Market Committees (APMCs), the primary procurement point for retailers, the chances of produce spoilage become high. It leads to the wastage of fresh produce. 

Additionally, retailers who rely on APMCs for their daily stock also face challenges. They have to travel to these markets daily, even early in the morning, to purchase various fruits from different vendors.

This is a time-consuming process that often delays the start of their day’s sales. Moreover, retailers are subject to inflexible purchasing requirements, such as minimum order quantities, which force them to buy more than they can sell.

This leads to overstocking. As a result, a significant amount of fresh produce is being wasted. In a market with tight margins, this waste impacts profitability and contributes to the broader issue of food waste. 

Shortened supply chains: Reducing waste at the source 

Demand consolidation platforms are redefining how fresh fruit is sourced and distributed, with a focus on minimising waste through direct sourcing and shortened supply chains.

By sourcing fruits directly from farmers and delivering them to a central facility, these companies significantly reduce the number of exchanges in the supply chain.

For example, mangoes grown in southern India traditionally travel thousands of kilometers and pass through numerous intermediaries before reaching markets in the north. Direct sourcing shortens this journey and ensures that the fruit is fresher and less likely to suffer damage or spoilage during transit. 

This approach has a substantial impact. By eliminating unnecessary intermediaries, the supply chain becomes more efficient, reducing the time fruit spends in transit and, consequently, the likelihood of spoilage. This means that fruits reach retailers in better condition, with a longer shelf life, reducing the overall wastage at the retail level. 

Grading and sorting: Ensuring the right fruit reaches the right market 

Grading and sorting produce at a central facility is another approach that is gaining prominence. By categorising fruits into different quality grades — typically A, B, and C — demand consolidation companies ensure that each type of fruit is directed to the most appropriate market.

High-quality fruits can be sold at premium prices, while those of lesser quality can be directed to alternative markets, such as juice vendors or processed food manufacturers. This targeted distribution reduces the likelihood of unsellable items piling up in retail outlets and minimizes overall waste. 

Moreover, this system allows for the repurposing of products that might otherwise be discarded. Fruits that are not suitable for retail sale are redirected to other channels, ensuring that as much produce as possible is utilized rather than wasted. 

Flexible purchasing and predictive demand analysis: Tailoring supply to demand 

One of the most significant contributions of demand consolidation platforms is their ability to offer retailers flexibility in purchasing quantities. Unlike traditional markets, where retailers are often required to purchase in bulk, these platforms allow retailers to buy according to their specific demand requirements. This flexibility is crucial in preventing overstocking and reducing the risk of fruits going to waste due to excess inventory. 

Further enhancing this approach is using predictive demand analysis powered by machine learning. By analysing historical sales, seasonal trends, and consumer preferences, these platforms can forecast the quantities and types of fruits that retailers will likely need within a given timeframe.

This allows retailers to make informed purchasing decisions, minimising the risk of excess inventory and associated waste. 

Way forward for a sustainable future 

Employing advanced innovative techniques when collecting and distributing fresh produce like produce can significantly reduce wastage.

Retailers employing demand consolidation platforms have witnessed a dramatic reduction in food waste, with wastage rates reducing from an average of 15-20 per cent to less than 5 per cent. This safeguards retailers’ profitability by minimizing losses and contributes to a more sustainable food distribution system. 

Demand consolidation platforms are revolutionising the fresh fruit supply chain. By streamlining operations, enhancing grading and sorting, offering flexible purchasing options, and leveraging predictive analytics, these platforms pave the way for a more efficient, sustainable, and profitable system for all stakeholders.

As the global community grapples with the pressing challenges of food waste and sustainability, the significance of these platforms will only continue to grow. 

The author is Founder, Fresh From Farm