Ep. 6. The Supply Sector

Here is a question I’ve asked myself over the years: What truly drives the fresh produce business?

If you come from a marketing background (like I do), your gut will say “demand”. If you were trained in any business school (as I was), you will talk about understanding the consumer. And if you’ve worked at a consulting firm advising food companies (like I have), you will probably recommend building your entire strategy around what people want to buy.

And you know what? In most industries, you would be absolutely right. But in ours… if that’s your mental model about the fresh produce industry, you are heading for troubles.

Today I want to talk to you about one of the singularities of the industry that I feel more strongly about, one that I discuss in the book perhaps too politely, too academically, and that, by contrast, in private conversations with colleagues and clients I end up repeating myself with, probably, far more emphasis than needed.

The concept is simple to state but profound in its implications: the fresh fruit and vegetable business is a Supply Sector. And if you do not understand what that means, you will keep running into walls you cannot see.

Welcome to a new episode of Freshconomics Podcast!