The digital trading platform Service2Fruit started in mid 2011. In the first year 25 million kg of fruit was traded, 35 million kilos was traded in the next and this year the "automatised commissionaire" hopes to achieve around 50 million kilos. The biggest challenge is the foreign expansion, according to director Walter Willems. Service2Fruit currently already has locations in the Netherlands, Belgium and Poland and are looking into opening a location in Hungary at the end of the year. "In the end we are aiming for a market share of five to ten percent in every main top fruit production country."
Commission
The trading platform is transparent about the company model. When a buyer emerges, they pay the money into a safe account at Service2Trust. When the fruit is delivered and the transaction completed, the selling party is paid. Service2Fruit receives commission for every kilo of supplied product. This is one cent for buyer and seller in top fruit. In peel fruit it is half a cent and in industry fruit it is 0.25 cents. "We aren't a trader, we are an independent moderator and do not buy anything ourselves. Users mediate themselves with the aid of our platform. We do our best to make a deal, as this means buyers and sellers are satisfied. If there are still discussions, we can play a mediating role. Our experience tends to be that parties can solve this in an adult manner," says Walter.
After the start in 2011 Service2Fruit has had varied prices in different years. "Last year was the most difficult for the selling parties. In general the focus is on the sellers in an expensive market and on buyers when there are low prices. You can see that there is still a kind of fear, especially in the selling parties, but it is decreasing. The buyers are generally ready for online trading. Most of the suspicion towards us is from parties who do not supply added value. Traders who operate as a service supplier towards the customers in the market have no problem with us. Various supermarket suppliers use us as a preferred purchasing channel. If the trader doesn't have added value, you notice buyers coming straight to us on the site."
5/10% share
Willems is satisfied with the past years, but doesn't want to get lazy. "We are working progressively, but are still a small player on the market. At the moment 70% of our traded volume still comes from the Netherlands, and 25% comes from Belgium. We want to move to a share in which we can take 5 to 10% of the market in the tone setting production countries. If we can realise that in a country like Poland, it's different volumes. We can also see that the Eastern European countries are ready for it and pick it up well, albeit carefully. The expansion abroad is the biggest challenge. You have to deal with culture differences and it requires a considerable investment. But there isn't a lot of difference in the way of thinking and doing in general between the sellers and buyers in the various countries."
Walter Willems
Although there is interest from multiple sectors into the concept of Service2Fruit, the trading platform remains faithful to the agrarian sector. "We have traded stone and soft fruit too this year, but the focus is on top fruit. Before we enter new product groups, we want to have more body," says Walter. "At the moment we aren't in the centre of the trade and hardly any positions are being filled. Yet we have around ten to twenty auctions every day. The Russian boycott has no ill consequences for us. We even think it is working out quite well for us. The volumes keep coming and a lot of people are more likely to choose other markets or new initiatives."
For more information:
Walter Willems
Service2Fruit
De Ooyen 15A
4191PB Geldermalsen
Tel: +31 885 321 300
Fax: +31 885 321 399
walter.willems@service2fruit.nl
www.service2fruit.com