Farm to supermarket cold chain an emerging trend

A total “unbroken” cold chain from farm to supermarket at competitive rates without jeopardising quality is an emerging trend in overseas markets, says Mario Tito, managing director of TSC Thusano Supply Chain. “There’s more and more direct sourcing from farms and pack houses, cutting out the export agent,” says Tito. “These supermarkets have huge buying power with shipping lines as they source globally and thus have global accounts with these shipping lines – this in effect means that the supply chain cost is reduced significantly.” While the South African perishable market was somewhat affected by the global meltdown, Tito says there is still much happening in the market. “Consignees are taking longer to sell fruit and this means exporters are having to wait longer for their money and this in turn has affected agents. There is definitely less fruit available for export but those that can survive the recession will definitely be around for a long time.” Tito’s optimism can be seen in his commitment and drive to expand TSC’s services. “In the perishable industry there are no secrets and everyone knows the costs of the supply chain. It is however not only about costs – it is also about passion, experience, commitment and being available at all times for your client. We are looking at a number of ventures not only in South Africa but also overseas.” Established in April 2008, TSC has carved a niche in the export of perishable products. “We want to expand our services around the core product,” says Tito. “The key stakeholders in South Africa are farmers, growers and agents and the focus for many of these is price and value. With the strengthening of the local currency against the dollar, South Africa has had to increase its productivity dramatically to stay competitive against the other southern hemisphere countries.” Tito says focus on cost reductions, generally left to the category managers and retailers at destination, has led to the focus now being shifted to value added services.