Fruits and Vegetables Market Analysis
An analysis of the fruits and vegetable market shows that 65% of these products are categorized under the processed fruit segment. These processed foods include canned, frozen, dried fruits and vegetables. Overall, the supply chain of these processed fruits and vegetables is driven by international trade. This accounts for an average of 35% which are exported to other nations bringing in revenue to the processors and also the producers.
Notable Practices within the Fruit and Vegetable Markets
The price of these processed fruits and vegetables is the major driver of competition between the processors. Each of the processors will try to lower the cost of production so as to compete effectively by offering favorable prices to the consumers. The Governments on the other side are encouraging fruit and vegetable farming through subsidies on farm inputs and protecting the farmers from exploitation by the processors who are the major market. Further, the consumer is protected from the supply of contaminated fruits and vegetables. This is through regulation of the farming process to avoid the use of harmful pesticides, and also regulating the importation process to make sure handling, packaging and labeling of fruits are done in accordance with the regulations.
Challenges Facing Fruits and Vegetables Market
It is worthwhile to note that the global fruit and vegetable markets have suffered many challenges including the forced need for the processors to innovate in several areas. This includes the need for processors to ensure that they have increased the appeal and the relevance of their products to effectively compete. This has led to the lowering of the profits margin as a result of the increased cost of production.
Another challenge includes a lack of proper harvesting and storage technology leading to degrading of the quality of the product which affects the price leading to lower profits to the farmers. However, in nations where there are advanced technologies, the producers are able to store and transport their products in good condition meaning the losses due to harvest and storage don’t affect them as much. Another challenge that affects the farmer and processor is poor infrastructure in some nations. Therefore the farmer can’t get the product to the market on time, and the processor can’t also access the produce in farms where there is a poor road network.
Where Governments Input Should Focus on in Regard to Fruits and Vegetable Markets
Looking at the above problems, there is a need by governments to invest more in areas that will assist the farmer and processor to earn more profits. In some nations, this has been worked on, but there is a need for more to be done in terms of investment in technology and research. With better research and technologies, there will be a faster time to market, better prices to the farmers, and therefore more profits. The processors too will benefit from higher quality products and more fruits to be able to diversify the end products. Eventually, they will make more profits which will, in turn, mean reciprocate to Governments through taxation.
Overall, the fruits and vegetable market performance can be rated as average meaning there is room for more to be done. This will be possible if governments support the industry.