Agricultural produce stall

Top 5 Challenges faced by Suppliers of wholesale Agricultural Produce

The global agricultural industry employs over one billion people all over the world, contributing as much as $2.4 trillion to the global economy. However, despite such a sizable contribution to the food supply, the job market and the economy of various countries all over the world, agriculture does have some challenges. In this article, we will be looking at challenges faced by suppliers of Agricultural produce.

Being a wholesale supplier of agricultural produce in such a thriving industry is quite profitable. But as financially rewarding as the business might be, there are several challenges associated with it too. Here are the top five challenges you’re likely to face as a wholesale supplier of agricultural produce.

Inventory Shortage

Not having enough produce in stock makes it difficult for a supplier to fulfill customer demands and this can become quite frustrating and detrimental to your business integrity in the long run. .

You can avoid inventory shortages by close monitoring of your Inventory Turnover Ratio. The ratio gives you an idea of the amount of produce that has been sold within a particular time frame. With this, you can easily track your sales history and stock up your agricultural produce inventory appropriately based on projected demand.

Poor Understanding Of The Market

The agricultural produce market is a diverse one. As a supplier, you will be dealing not just with the business side of things but also with people of different tastes and needs. It is good that you understand your market very well in order to understand how to meet their demands. For instance, some people would rather purchase processed agricultural products instead of raw ones because they feel that storage would not be a challenge. Others would prefer their products organic because they believe that they are more beneficial in their raw state. Meeting up with such a varied array of buying interests can be a little difficult. An indepth knowledge of the market will guide your inventory decisions and ensure better business outcomes.

Uncommitted Buyers

Suppliers of wholesale agricultural produce often find it difficult to build up a loyal customer base. The agricultural produce market is a competitive one. It is often difficult for suppliers to find repeat buyers that will be loyal to them. Customers that are repeat purchasers would stay loyal to your products even if your price is considerably higher than that of your competitors. It is really important to convert your one-time customers into those that purchase goods regularly. It is even worse when you start to lose buyers. You will need to go through the laborious process of building new relationships with new people all over.

Storage Issues  

Most agricultural products are perishable. They are more prone to losing taste and freshness over time. Apart from this, they could also be at the risk of being damaged by pests. Therefore, there is a need for you to have reliable storage facilities in place as a wholesale supplier. You want to make sure your customers get their organic products with all their freshness and nutrients intact. Your storage facility should be free from all sorts of contaminations and be proofed against annoying pests. It is also important that you invest in up-to-date security technology and personnel to guard against loss.

Fluctuating prices

Agricultural products are necessity goods. This means they’re always in demand regardless of price fluctuations. This may not always be beneficial to a wholesale supplier. In addition to the extra cost of stocking such as maintenance, security and space, suppliers also have to worry about losing their profits due to fluctuating prices.

While it might seem like a good idea to stock up on agricultural produce, especially during a bountiful harvest, the downside to this is that the prices of the produce might reduce over time (before all the products are sold). This could prove to be problematic to a wholesaler that has already stocked up his agricultural supplies in bulk. 

As a supplier of agricultural produce, your best bet to navigate this challenge would be to find buyers for your product as quickly as possible. A platform like ProduceMart makes this possible. An online B2B marketplace for wholesale agriculture, Producemart makes it easier for suppliers to find buyers on local, regional and international level. Visit to learn more about our services. You can also connect with us on our social media handles and subscribe to our newsletters to stay updated with more helpful content for your business.t

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