IDENTIFYING NEW MARKETS

East African Horticultural Company:

Farmers in an East African country grow large quantities of temperate and sub-tropical vegetables in the rainy season, when supplies are abundant and the local market price often falls below the level of economic viability. In the dry season, however, local supplies are limited and prices rise to a very high level. Even supplies destined for export markets are affected by these price fluctuations.

There is a clear need for companies interested in buying and marketing vegetables from such locations to find alternative outlets for wet season surpluses; there is equally an opportunity for such companies to promote increased dry season production to satisfy demand.

Company A analysed the supply of vegetables in the wet season from its existing catchment area, the demand and prices for its products both in its traditional target markets and in non-traditional outlets, and the supply and prices of vegetables coming from competing sources. It concluded that there was both a need and an opportunity to develop new markets for surplus production:

1. by hot air drying, juice extraction or other forms of vegetable processing and preservation
2. by encouraging farmers to diversify part of their production to 'Asian vegetables' (okra, capsicum, snake gourd, etc) whose higher value allows them to be air-freighted to more distant markets;
3. by promoting early and late-maturing varieties of crops in order to stagger production away from the peak period of supply;
4. by seeking niche markets through fair trade outlets, organic production, tourist hotels and other value adding opportunities.