Proganic
RENZO VEENSTRA - CO-OWNER
“From the start, there was a good click with the people at Boozt24 and after a short adjustment period – during which everyone had to get used to paying via Boozt24 – everything is now running very smoothly.”
About Proganic
Proganic Proganic Tanzania Limited, a leading international producer of organically grown avocados, supplies avocados to retailers who have them grown in Tanzania on so-called "smallholder farms." These farms are unable to export themselves. Proganic Tanzania Limited, the local branch of Proganic, makes agreements with these growers on organic cultivation methods, then organizes its own harvesting teams for optimal harvest control, and arranges containerized transport to the Netherlands. The avocados are inspected upon arrival and, based on customer demand, ripened, packed, and delivered in the desired packaging. "This way, we always know what we're delivering; a lot can happen to the fruit in containers during transport," says Renzo Veenstra, co-owner of Proganic.
Organic cultivation in a sustainable chain from farmer to consumer
Proganic launched in the Netherlands in 2019 as a producer and exporter of organically grown avocados. Tanzania was chosen as the country with regions offering favorable climatic conditions for cultivation year-round. This allows Proganic to supply year-round. To establish a local presence, Proganic Tanzania Limited was established. From there, contact is maintained with affiliated local farmers across the country, harvested by dedicated teams at these farms to monitor quality, and the harvest is then centrally packaged for shipment to the Netherlands.
Challenge
Proganic has experienced tremendous growth since its inception. We've gone from shipping two containers per week to shipping five or six, each container filled with approximately 120,000 avocados. Once they arrive in the Netherlands, the avocados are repacked. This involves checking for quality and ripeness, and packaging them based on customer preferences. Fortunately, each customer has its own requirements, and a higher processing rate is possible. While it's certainly welcome when demand increases, filling and shipping each container costs an additional four to five tons, which is money that needs to be available.
Proganic must pay its affiliated growers immediately when the harvesting team arrives, while it takes an average of 120 days for Proganic to receive payment from its customers, the large supermarket chains. However, not supplying at all is not an option. "You can't just say 'I have nothing,' in retail you always have to deliver," says Renzo, "so you have to explore the possibilities of making this happen."
Solution
The year-round demand for high-quality, organically grown avocados demands growth. In Tanzania, Proganic has already certified a significant number of growers, each of whom delivers a good product but is too small to export independently. These growers are spread throughout the country; their size allows for harvesting in one or more regions throughout the year. There's ample supply, and no shortage of plans for the future. "Growing is a joint effort," explains Renzo. "We're currently collaborating with 500 growers, and we're in contact with 1,600. We want to offer these growers something as well. For example, there are plans to train and advise affiliated growers to increase production and ensure organic farming remains an attractive option. This creates added value for both growers and buyers."
Proganic wants to achieve this in part by establishing an intelligence center. "We can then also continue to develop together there." However, these plans can only be realized if the company can grow in volume. The latter means that additional funds are needed to ship more containers. Pre-financing by invoice through Boozt24 has proven to be an excellent solution for accessing a large portion of the invoice amount immediately after invoicing customers. This money can then be used to pay growers immediately upon harvest and to scale up the number of containers shipped per week. "From the start, there was a click with the people at Boozt24, and after a short adjustment period—during which everyone had to get used to paying through Boozt24—everything is now running smoothly," concludes Renzo.
The Result
Pre-financing on invoice from Boozt24 makes it easier for Proganic to meet the demand for avocados all year round
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