Posts in Asian Farmers Association

The squeeze on farmers' profit margins is likely to tighten as supermarket chains become as concerned with safety and quality as they now are with cost... The good news for Asia's fruit and vegetable growers is that the region's rapidly expanding supermarket chains are particularly keen on selling fresh produce. In marketing jargon, fruits and vegetables are a "destination category", one that attracts consumers and builds customer loyalty. The bad news is that modern food retailing brings with it fierce competition, reduced profit margins, demanding quality standards and procurement systems that focus increasingly on an elite group of "preferred suppliers". In this sink-or-swim environment, many traditional fruit and vegetable wholesalers - and millions of small-scale producers - must either adapt or face exclusion from the market.