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Going for the gap: making the most of market opportunities

Liberalization offers greater opportunities for agricultural producers to market their products. But liberalization and changes in world trade regulations may also remove protection and support, leaving producers exposed to competition in an increasingly crowded, complex and changing market place. To survive, and hopefully thrive, farmers and processors have to develop the will and capacity to seek, recognize and exploit gaps in the market (see Entrepreneurial extraction), which they are in a position to fill. Local jams, pickles and spices, GrenadaFor this to occur, it requires a change in perception and access to information and available resources to develop and market new products.

Most developing countries are eager to make the most of export potential as income earned is a major source of foreign exchange (see Organic - and certified). However, the new era of liberalization has provided challenges to many producers, many of whom have had no previous experience of 'free market' conditions. Recent trade agreements have also increased the risk that overseas competition may overwhelm domestic production of many products: imported wheat can result in the displacement of traditional cereals, and subsidized exports of dairy products and meat may be landed at less than the cost of local production. In addition producers, smallholder farmers in particular, may at first feel ill-prepared to tackle the tasks of mastering export procedures and growing a sufficient quantity of a given minimum quality to be delivered during a very specific period of the year (see Commitment to cassava). In practice, only the largest farming companies can undertake the development of new niche markets without specialist advice and assistance. Most producers and processors will succeed only if they form groups or co-operatives and pool their resources in order to exploit modern market demands.

However, the demand for new and unusual products has increased dramatically over recent years as more people in developed countries travel more widely and tastes become more adventurous (see Success that's cut and dried). As this trend grows, additional niche markets for indigenous or novel added value processed products will continue to emerge. Adding value also has the advantage of keeping more of the final sale income in-country. It also offers employment, often in rural communities, and it is an opportunity to package and brand products in an attractive manner using local resources such as cotton bags or sisal twine.

There can be no expectation that surviving in the open market situation of the future will be easy (see Export potential or exploitation?) or free of competition and disappointments, but the demand for tropical products will remain and continue to grow. As liberalized economies open up the market place to greater variety, they should in time also create a good primary agricultural base for all. But the greatest rewards will go to those who have the imagination to see the need and those who have the determination and the business skills to offer something original to consumers.

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