Are you interested in the international agricultural trade? Here are somethings you ought to know.
International agricultural trade involves commercial activities that take place between two or more countries for private gains, achievement of government policies or political gains.
If you are getting into the agricultural export market, there are various management orientations that include: domestic market expansion, multi domestic market concept or global marketing.
Domestic market expansion concepts is where by you produce your dhania for domestic use as your main priority but since at times you may have surplus production, you sell to another country say Tanzania but your primary target market remains Kenya.
If you are guided by the Multi domestic concept, you will treat each market (country) differently and hence applies different marketing strategies for each of the countries you market to. You may be operating a flower business say Maua Flowers in many countries but apply different and independent strategies interms of management and marketing to each.
In Global marketing system orientation, the world is seen as a community that has the same needs. One product is produced for all the countries and a standard quality and pricing mechanism is developed. For example with mobile phones. The same handset in one country is the same in another the only difference is the prices but is usually standardized.
There are also risks involved in the international markets that include but aren’t limited to;
1. Changing consumer tastes and preferences whereby, if research is not carried out on these changes, the business may fail.
2. Political and legal environments that keep on changing affect agribusiness ventures for example; the PEV of 2007/2008
3. Economic conditions of a country are also to be looked into as they may cause business failure. A stable economic environment favors growth and sustainability as opposed to the vice versa
4. Stiff competition or lack of appropriate personnel with skills in international business management.
Be on the look out for continuation on the trade policy instruments.
Have a great week ahead.