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Fair-Fruit International

Belgium

Fair-Fruit International is a commercial cost center for global sourcing of fresh fruits and vegetables, pursuing year-round supply to worldwide markets

2012

Fair-Fruit International obtained its budgeted sales of $ 25M in 2012, representing peas and beans from Guatemala and Peru, mangoes from Peru, Burkina Faso and Mali, baby bananas from Ecuador and many more rare exotics from all over the world

Description

Fair-Fruit International operates as a facilitator for optimal and transparent sourcing of fresh produce for export markets and retailers. It functions as a global sourcing and marketing cost center that aims at enabling a sustainable 12 month supply to worldwide markets. Fair-Fruit International strives to optimize fresh fruit and vegetable value chains by contributing to their efficiency, transparency, sustainability and reliability.

To achieve this, it has endeavoured to anticipate market trends and to understand de fresh fruit and vegetables retail market in its finest details. The organization builds on strong strategic relations with its key customers, including retailers.

Peas & Beans value chain

Production
Packaging & export
Repacking
Sales & marketing
Market
Smallholders Guatemala
not neccessary
US
Europe
not neccessary
Other providers worldwide
Other providers worldwide
  • Durabilis Business
  • External
  • Market

Mangoes value chain

Production
Packaging & export
Sales & marketing
Market
Smallholders Peru
US & Europe
Smallholders Burkina Faso
Other providers West Africa
Other providers West Africa
  • Durabilis Business
  • External
  • Market

Risks and opportunities

  • Blue flag
  • Green flag
Status
Explanation
Investors
Status
Explanation
Opportunity

Fair-Fruit International stands close to Durabilis' exporters and is well positioned to defend its suppliers's and own interests as well as to optimize the exchange of knowledge and technology

Smallholders
Status
Explanation
Challenge
Supermarkets’ excessive buying power allows them to pass risks and losses to the lowest echelons of the chain: the producers. The latter receive little incentive to think long term, let alone invest in the sustainability of their operations
Challenge
Consignment sales, a common practice in the perishables sector, cause an imbalance between supply and demand and result in high price volatility
Challenge
High price volatility makes it very difficult for suppliers to react timely to market signals
Challenge
Direct sourcing exposes the supplier even more to disproportionate buying power, with potential disasters as a result if the relationships are not well balanced.
Consumer
Status
Explanation
Challenge
Increasing food safety and other social and environmental requirements demand more competence from suppliers
Challenge
Fair-Fruit Belgium forms a direct link between suppliers and retailers, offering excellent sourcing services to retailers while addressing the suppliers’ needs for a stable business environment that allows long-term investments in quality and sustainability
Evolutions

Fair-Fruit International obtained its budgeted $ 25M in 2012, representing peas and beans from Guatemala and Peru, mangoes from Peru, Burkina Faso and Mali, baby bananas from Ecuador and many more rare exotics from all over the world. Almost every kilogram sold through Fair-Fruit International had a trustworthy market house prior to harvest, with guaranteed returns in long term contracts. The latter allow taking the value chains out of the weekly pricing negotiations, and achieving a consistent year-round price. Because of its multinational and integrated presence at source and diversified product portfolio, a stronger bargaining position can be demonstrated towards clients, avoiding unfair distributions of profits and risks that affect the producer the most.

Outlook

With the experience and network that Fair-Fruit International has built during the past years, it feels that more emphasis on branding will become important in the near future, not only B2B but also B2C. Direct or semi-direct contacts with the retail will certainly be intensified. Considering Fair-Fruit International's success, an additional office will be opened soon in the UK.

Commitment tracker

  • Work in Progress
  • Reconsidered
  • New
  • Achieved
Commitment
Due Date
Status
Comment
New Due Date
Member companies
Commitment
Due Date
Status
Comment
New Due Date

Sustainable procurement strategy

2012
Achieved
Social responsibility will be taken into account in the commission paid by the members: members that improve their performance on social responsibility will be rewarded with a discount proportional to the organization’s achievements
2014