Currency volatility is affecting profitability for fruit importers, with fluctuations of 3–5 per cent capable of eliminating margins on individual shipments, according to insights from cross-border payments platform Verto.
Foreign exchange (FX) movements during typical 30–60-day shipping cycles are influencing landed costs, pricing stability, and working capital across the fruit trade.
Financial risk is becoming more relevant alongside logistics, freight, and sourcing. Importers operating across multiple currencies face exposure as produce is often purchased in US$ or euros, while revenues are generated in local currencies.
Traditional banking systems continue to affect cross-border payments. Transactions routed through correspondent banking networks can take several days to settle, reducing visibility, delaying supplier payments, and tying up working capital.
Fintech platforms are enabling faster cross-border payments, with settlement times often reduced to under 48 hours. This is improving operational processes and influencing supplier relationships, particularly in competitive supply conditions.
“For too long, the fruit industry has focused almost exclusively on the physical supply chain, logistics, and freight, while the financial supply chain has remained a silent profit-killer.
“When a mere 3% shift in exchange rates can entirely wipe out the margin on a shipment, FX management is not just a treasury function: it is a core component of operational survival.
“We’re seeing that the most resilient importers are those treating currency volatility with the same rigour they apply to cold-chain integrity,” says James Booth, head of revenue at Verto.
Payment speed is also influencing access to supply. During tighter harvest periods, growers prioritise buyers who can offer faster and more predictable payments.
These findings are outlined in Verto’s report, The Hidden Cost of Currency, which examines how importers can improve supply chain resilience through FX hedging and payment infrastructure.
As trade conditions change, financial systems are becoming as relevant as logistics in maintaining competitiveness in the fruit import sector.
Source: Bizcommunity
