As the relationships between supermarket giants and fresh produce suppliers make front-page news, online marketplace Freshey has launched a system it says will provide a fair deal for growers and wholesale buyers alike.
Freshey is a wholesale produce marketplace where growers can list and price their own produce however they see fit, with transparent pricing across the platform allowing growers to adjust their offers based on market trends.
Producers can also sell future orders ahead of their harvest, ensuring cashflow through growing seasons.
The platform also bills itself as a new way for wholesale buyers, like independent grocers and hospitality businesses, to access bulk fresh produce from a range of mainstream and boutique producers.
Buyers can leave star ratings after each completed order, guiding others to the highest quality produce on the platform.
Freshey allows both sides of the deal to negotiate through the app or desktop platform, with no fees for the buyer, outside of paying for the stock and freight.
Instead, the platform takes a 7% commission from the seller for each transaction completed on the platform.
Freshey is based on the existing ShoreTrade platform, which offers similar functionality for seafood vendors and buyers, and is now used by ventures as large as the Sydney Fish Market.
ShoreTrade raised $8 million in 2021, led by Investible and Luxem, with additional investment from Singapore’s Vulpes Ventures.
“We are excited to be entering into another journey with our technology,” said Peter Manettas, founder of ShoreTrade and Freshey.
“The team has worked tirelessly to ensure our technology is at the forefront of fresh digital trade.
“The nuances in the fresh food industry met with the years of experience in fresh food trading by our team, has allowed us to put together a platform that truly benefits sellers and buyers, whilst also creating a user experience which they are comfortable with.”
Freshey’s arrival in the Australian market comes during intense scrutiny of the relationship between fresh produce growers and supermarket giants Coles and Woolworths.
In its submission to a Senate inquiry on supermarket pricing, Fruit Growers Victoria, an industry body representing much of the nation’s apple, pear, and stonefruit sector, said Coles and Woolworths are “able to set the price for horticultural produce, due to their dominant 65% market share”.
“We are concerned that abuse of market power and unfair buying terms is making fruit growing uneconomic, with our members reporting being forced to sell fruit below the cost of production,” the organisation added.
Concerns over Coles and Woolworths’ pricing tactics — both at the farm gate and the checkout — were central to Monday’s Four Corners broadcast, which saw Woolworths CEO Brad Banducci temporarily walk out of an interview with the ABC.
Banducci announced his retirement on Wednesday, in a move the Woolworths Group veteran said was a long time coming.
Speaking to SmartCompany, a Freshey spokesperson said the company does not have a direct line of sight to supermarket pricing practices.
“Supermarkets do play a very important part in the supply chain (and a large chunk of it),” they added.
“They offer convenience for end consumer but the relationship/supply chain needs to be managed.”
However, the spokesperson said Freshey is tailor-made for growers looking to expand the number of potential buyers beyond their traditional accounts.
“Freshey has no pricing influence and [the price] is determined by the market,” they said.
“The view is that supermarkets negotiate the price they pay directly with their suppliers, but with us, the market negotiates/dictates the price.
“Freshey opens up the growers’ sales network to more buyers across multiple tiers in market-hospo, wholesalers, processors which opens up a broader spectrum of people to have visibility on pricing which will stabilise pricing over time.”
Freshey is available via the Apple Store, Google Play, and online.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
