AZ — Navigating the complexities of international trade can be challenging, especially for small and medium-sized businesses. Many agricultural exporters struggle to find the right markets, negotiate favorable deals, and overcome logistical hurdles.
Exporting agricultural products can be a lucrative venture but you must have a solid understanding of the export process and use the right strategies. To assist you, we’ve provided valuable tips to help you succeed in the international agricultural market.
Establish Effective Distribution Networks
An effective distribution network provides a way for you to reach a wider customer base in various geographical locations. You will then establish partnerships and channels that can distribute your products into different markets easily
Additionally, with the right networks you can overcome barriers and quickly establish yourself into new markets which can lead to increased sales and market share. You can also optimize your supply chain and logistic processes.
You’ll have access to experts in agricultural distribution who can quickly manage warehousing and inventory to streamline your operations.
Enhance Your Agricultural Products
Did you know that foods with low-profit margins can be highly profitable to you when they’re used to create other products? For example, brewing or pickling takes lower profit margin foods and turns them into a product that has higher consumer demand.
Consider growing products that are easy to farm like coffee beans which is also a product that’s in high demand to make various types of coffee like instant, ground, or whole bean.
Although orange trees take a long time to grow they can also be easy to maintain and it’s a food item that’s in high demand to make fruit juices. Furthermore, oranges are better to export because they don’t spoil easily.
Consider Going Through Trade Programs
Another way to increase your profits and expand your agricultural business is to go through trade programs. Organizations like the USDA (United States Department of Agriculture) have representatives located in many countries around the globe to help US farmers find buyers overseas.
The USDA also hosts trade missions that assist American agricultural companies in connecting with foreign customers all while gathering marketing intelligence. This can be highly profitable because many foreign countries seek out products like dairy, meat, and produce from US agricultural businesses.
Use Affordable Technology
When establishing your agricultural business you’ll need a way to connect with distribution networks or trades from other countries. But making international calls using a standard telephone line can cost your company thousands of dollars.
The best way to contact your foreign partners is by using VoIP call center solutions which can handle high call volumes. This type of system also runs entirely from the internet so you can connect with a foreign recipient faster. You’ll also save money because VoIP systems are more affordable compared to a standard landline.
There are various ways you can connect with foreign partners and distributors. You can conduct video conferences, leave voice messages, and record your phone calls for any legal reasons. VoIP is a smart way of connecting with anyone outside the country.
Meet Global Standards
If you’re looking into entering European markets then your agricultural business must meet the basic global standards. You may need to meet standards set by organizations such as the Codex Alimentarius Commission. They provide guidelines for food safety and ensure fair practices in the food trade.
On the other hand, each country has its own regulations when it comes to accepting imports from foreign agricultural businesses. You may be restricted from using specific pesticides and chemicals when growing produce. Some countries also prohibit certain types of packaging.
Meeting these basic food trade standards can open up many opportunities for your business because you’ll be able to export and trade with hundreds of countries.
Make Your Farm More Eco-Friendly
It’s no secret that consumers are more conscious about the products they buy. People are more aware of their carbon footprint so they choose to buy products from companies that promise the use of eco-friendly practices.
Consider implementing organic farming to eliminate the use of pesticides and synthetic fertilizers that could harm the environment. You can also use water-saving strategies like drip irrigation and rainwater harvesting.
Make sure you let your customers know that you practice eco-friendly farming by placing your information on your packaging. Consumers who prefer eco-friendly products will buy more of what you’re selling which will increase your profits.
Now that you have some ideas on how to grow your agricultural business and move into international trades you can start strategizing. Use the tips in this post to help you become a powerhouse in agricultural trade.
– Lucien Dubois