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Diversification of Export Crops

In: The Growth of the Fruit and Vegetable Export Industry in Peru

Author

Listed:
  • Tatsuya Shimizu

    (IDE-JETRO)

Abstract

Agriculture is an industry characterized by fluctuation. Demand for labor, equipment, and facilities fluctuates depending on the season. Production volumes and market prices fluctuate depending on the weather, pests and diseases, and the balance of supply and demand in the market. These fluctuations, which originate from seasonality and uncertainty in agriculture, are obstacles to stable business operation. Agribusiness companies with large investments and many employees are vulnerable to these fluctuations. To overcome the challenges that originate from these fluctuations, agribusiness companies diversified their export crops, combining crops with different harvest seasons to sustain demand for labor and facilities throughout the year. This diversification also reduced market risks. To find markets for diversified crops, the companies looked for gaps in niche markets and adjusted their supply to fit the markets.

Suggested Citation

  • Tatsuya Shimizu, 2022. "Diversification of Export Crops," SpringerBriefs in Economics, in: The Growth of the Fruit and Vegetable Export Industry in Peru, chapter 0, pages 41-55, Springer.
    • Handle: RePEc:spr:spbchp:978-981-16-9629-9_4
    DOI: 10.1007/978-981-16-9629-9_4
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