On the market fl oor

There is no shortage of challenges in the fresh-produce trade. Farmers, retailers and other role players in the industry continually have to decide how to tackle these, and whether they can be used as opportunities.

From a marketing perspective, a challenge could be one of many: is it a distribution problem? Is handling the culprit? Are storage conditions inadequate? Whatever the case, a solution will be needed, and often urgently. And this applies regardless of the scale of the problem.

A MEGA CHALLENGE

In March, the gigantic container ship Ever Given became stuck in the Suez Canal for six days, blocking the passage of more than 400 vessels.

Consider a ship stuck on the Mediterranean side, carrying fresh fruit destined for the Far East. What is the owner meant to do?

Even under ideal storage conditions, fruit cannot last forever, so waiting for the canal to be cleared might not be an option.

To turn around and sail via the Cape would add enormous cost and roughly two weeks’ worth of extra sailing time. Impatient buyers in the

Far East might decide to source fruit from another supplier, leaving the exporters with an added challenge.

Finding a buyer in Europe or the UK at the last moment might be an option. But that may be extremely difficult to do. Or will it provide an opportunity to rescue the situation and still turn a profit?

REDUCED PRICE

At the other end of the scale lies a local farmer who may have just been advised by the market agent that the last batch of produce was not up to standard and will have to be sold at a reduced price.

It might sound like a disaster, but the wise farmer will see it as an opportunity to ask some tough questions. Where did I fall short? How can I improve my production, packing and marketing?

Challenges can lead to opportunities to do better and boost profits.

Michael Cordes is an agricultural journalist, consultant, trainer and former farmer. Email him at farmersweekly@caxton.co.za. Subject line: Market floor.

ASK YOURSELF: CAN I IMPROVE MY PRODUCTION AND MARKETING?