In the past 15 years, food supply has increasingly been built on a global scale and many countries around the globe have established trade agreements. In April, the U.S. introduced a 10 percent universal tariff on most imports, shaking up global trade. While this rate currently applies to most countries, higher, country-specific tariffs were also announced for several nations. However, enforcement of those increases has been suspended until July 9, 2025, while trade negotiations continue.
With produce exporters facing mounting uncertainty from sweeping U.S. tariffs, companies' bottom lines are being impacted and so are customer relationships. What options are there to manage? "We offer a timely solution," says Denise Junqueiro, Vice President of Global Marketing at Fresh Formulaics. "Our next-generation, plant-based post-harvest treatments, including our breakthrough product Flair S1™, help produce suppliers and shippers respond to market disruptions by improving arrivals quality, reducing shrink, and unlocking new export opportunities."
In an already tight-margin business, import taxes are further squeezing profits and as a result, growers and shippers are looking for options to ensure their businesses remain sustainable. "They need to improve efficiencies, and one of the solutions our product offers is 10 to 15 percent more sellable fruit," says Junqueiro. "That's fruit that would have typically been rejected or lost along the way due to shrink."
Citrus treated with conventional wax versus Flair S1™.
While one option is for growers and exporters to increase the share of sellable fruit, many exporters are now also looking to diversify their export markets. "Shippers with a more balanced export portfolio will be able to ride this storm better," noted Junqueiro. Latin American exporters for example are redirecting shipments to Europe and Asia. However, entering new markets often means building new relationships, as well as being faced with longer travel times and tougher arrival standards. "If you're entering a market you haven't shipped to before, it usually takes at least a season or two to get your systems in order," Junqueiro added. "Our product extends shelf life, enhances appearance, and provides consistency that helps exporters succeed with longer routes and unfamiliar buyers. It acts like an added layer of insurance that provides confidence right from the start."
Fresh Formulaics' solutions are mainly applied to citrus and avocados currently. While Mexican avocados remain exempt from new tariffs under the United States-Mexico-Canada Agreement (USMCA), recent trade policy changes have caused shipment delays and operational uncertainty. In addition, avocados imported from South American nations like Colombia, Peru, and Chile are faced with a 10 percent tariff presently. Citrus, meanwhile, continues to face price volatility and changing trade conditions, prompting many produce suppliers to reassess their export strategies. Producers are adjusting in real time, looking for practical ways to protect their margins.
Fresh Formulaics is already working with growers and packers who are adapting their export strategies in light of these trade developments. With the company's drop-ship model, getting started is simple and fast, even for first-time exporters or those testing new markets. " Our products are competitively priced and bring high value to our customers," said Junqueiro.
For more information:
Denise Junqueiro
Fresh Formulaics
[email protected]
www.freshformulaics.com