Market orientation
Product oriented versus market oriented
Changes take place and labour is being replaced by technology.
Production orientation and technical developments in agriculture has lead to over-production and low prices for the products.
Markets are changing. The consumer is now determining the market.
From production oriented farming (with many different clients) the potato producers are drifting towards market oriented production (with only a few powerful clients).
This market determines products which are being produced and the production methods used.
The quality of the products and the prices paid for it have to be competitive with similar products from elsewhere.
Changing markets and product differentiation
Farmers have to adjust the production:
- production of quality potatoes (for seed, for fresh consumption, for the processing industry)
- produce for competitive prices
- produce special products for special clients
- able to offer a sufficient quantity to be an interesting partner in the trade
- linked to a respected Potato Collecting Organization
- have links or contracts with the (private or cooperative) seedindustry, processing industry,etc.
Farmers are partners in the agri-industrial chain.
AGRO-INDUSTRIAL CHAIN