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Risk of Unsold Fruit: Marketing Risk: Pineapple Exporting

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15 views1 page

Risk of Unsold Fruit: Marketing Risk: Pineapple Exporting

gfgh

Uploaded by

novy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Marketing risk: Pineapple exporting

 the risk of having unsold crops and that of a sudden change in demand.
 Export-oriented commodities typically have limited domestic demand in developing countries.
 It represents considerable sunk cost in terms of inputs, labor, and land. The risk of unsold
produce may restrain farmers from participating in the export market.
 the income gap between the poor and non-poor has been widening due to the difference in their
risk-taking ability.
 the global market demand may change suddenly as new types or varieties of crops are
developed. These changes act as exogenous shocks for the producers in developing countries and
unless they adopt these new varieties, they fail to continuously benefit from the global market.  
Risk of Unsold Fruit
 an additional factor that enhances risk in developing countries is the limited ability of the
domestic market to absorb the unsold horticultural produce due to the limited domestic demand
for fresh produce and an underdeveloped processing industry.
 Two important factors contribute to the risk of unsold fruit: the perishability of horticultural crops
and the limited extent of the domestic market. The shelf life of horticultural crops is generally
short; thus, the produce needs to be sold immediately after harvesting.

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