Produce auction bypasses the dominant importer

In Japan and South Korea the same company dominates the market and imports 50% of the produce. This dominance has a negative influence on the prices growers in New Zealand get for their products.

 Exporters under price pressure

One of the leading produce exporters asked our help to set up a new sales strategy. Target is to reach the smaller importers and wholesalers, and get a larger customer base.

Setup a produce auction

Make the lots  small enough for importers and wholesalers to buy directly. Lot sizes should be small enough for smaller buyers to handle.
We build an auction site where bidders can bid per kg  (all prices in this market are per kg) a lot is  one or more containers (25.000 kg) or multiple bins As a result smaller importers and wholesalers can buy directly from the exporter.

 Time frame

Time frame was very short, because of hot weather the first crops had to be harvested weeks earlier than planned.

Before the  produce auction could start we had to solve  a number of issues like:
When will an auction start and end? We had to work with 4 different time zones.
Within 4 weeks we solved all problems and the auctions could start.
The result was better than expected:

  • Bidders are happy.
  • The other exporters in New Zealand were shaking, because the whole play field has changed.
  • New customers entered the import market.
  • The auction rules made it possible to streamline payment process.
  • The main goal was achieved “the biggest importer was bypassed” .