Strategies for Marketing Organic Food Products

Strategies for merchandise Organic Food Products in that respect is a global development demand and supply for primitive sustenances. This has resulted from increase health awargonness and aliment safety, a growing demand to nourish the environment and animal welf argon. The Inter national Federation of Organic Agriculture causa (IFOAM) defines innate fruition as a process that relies on bionomic processes, biodiversity and cycles adapted to local conditions rather than the use of inputs with adverse effects (IFOAM, 2010). Marketing the harvest-festival will abide the link that will satisfy two the demand and the supply. Thus marketing the products will provide the link amid the producers and the consumers. While the marketing of these products is developed in the U.S.A, the Asiatic marketing is equitable developing. This essay will analyze marketing of essential provender products in the U.S. and in Asia. The primitive food production in the Asiatic countries is p rimarily do for the trade market as the domestic consumption is distillery emerging (IFOAM, 2004). This is in contrast with the U.S. market where the number of radical food product consumers has been increasing gradu entirelyy (Dimitri Oberholtzer, 2009).ProductionIn most Asian countries thoroughgoing production is mainly for sm completely farmers in order to encourage them to be self sufficient and improve the smell of the soil. It is mainly d atomic number 53 for export. Organic food production in Asia is yet to develop. Though the Asian countries form 25 portion of the members of (IFOAM) the area engaged in organic farming is still very sm entirely as by 2003 all the Asian countries had completely utilized less than 1 percent of all agricultural land in organic farming with the exception of china IFOAM, 2004). The local markets in Asia are non established and are only emerging. Marketing inaugurals are in the process of creation launched. in that situation are Nati onal Initiatives to develop the organic sector. There are initiatives by NGOs funding to practice organic agriculture and training them on how to market the organic food products. around of the organic farming has support from the grassroots level. In most Asian countries there are very rare national scale of organic production and only India has a government initiative. The Indian government (Agricultural and Processed Food Products Export Development Authority (APFPEDA)) initiative is only meant to assist in exporting of the organic food and not to develop the domestic market. APFPEDA offers training to producers and certification agencies, research and development go promoting certification programs, developing policies, improving quality of services, promoting Indian organic foods. compulsioniness of proper regulations and certification processes has hindered the development of the organic food production and marketing. just this impulsion is changing as there are already some(prenominal) countries that need developed National Organic Regulations to promote both export and domestic production. The regulations are responsible for setting the standards. Currently most of the Asian organic foods are certified by foreign bodies, with only China, Israel, Japan, Thailand, India and Philippines being the only Asian countries with their own certification (IFOAM, 2004).As one of the largest consumers and one of the countries with a high per capita income, any change in the U.S consumption trend will prepare an effect. Thus organic food production and emergence has been affected by the U.S consumption. The organic food production patience observe an increase of 16-21 percent in 2008. The industry receives government support both in monetary terms and in developing policies. This contrasts with the Asian industry which is still in the process of setting policies (Report buyer, 2010). The 2008 Farm Act allocated $5 million to do further research on the mar keting dodge of organic food products in U.S. There are regulations in the U.S. which are provided by the 2002 USDA National Organic Standards.ChallengesThe main challenges facing the organic food marketing are the determine competition and logistics arrangements. The organic foods lose to compete with otherwise non-organic foods in terms of pricing, varieties and the frequency of production. The organic food products are expensive to produce. Their infrastructure is yet to be developed and then it is hard for the marketing organizations to sell them at a competitive set. The organic food products are expensive both in the Asian countries and in US. In US organic foods are 10 to 30 percent more expensive than the established food products (Dimitri Oberholtzer, 209).The domestic consumers are not conscious on the benefits of using organic products. Consumers have little culture on organic food products and most consumers will only oppose the prices of the food products as th ey do not know the benefits of organic foods to themselves and to the nature. apart(predicate) from this, the organic foods have confront competition with the already developed conventional food products. Since there are only a few informed consumers, the organic food companies have to compete for this small number of consumers. There is a need to create consumer awareness. There is therefore a need for the relevant authorities to device ways to first develop a domestic market for organic foods. There is potential of suppuration that results from the event that there are concerns by most consumers with the high chemical such(prenominal) as pesticides remnants in many foods. In addition to this organic foods are withal preferred by those who are been sick.Another challenge faced in Asia is that the producers lack in marketing skills. This leads to the producers facing challenges from having to compete with supermarket chains. Most of the organic suppliers are smaller as compared to the conventional food suppliers. This leads to discontinuation of those organic foods that are slow moving, thus disrupting the already developing trend. In addition to this, most of the countries have not developed labeling laws. Consumers will have more confidence when purchasing labeled products. This is crucial for assurance of quality considering there are many self proclaimed organic products in the market. In the U.S the organic foods are sold in branded product lines as well as private-label organic products, whereby this has resulted to an increase of the private-label products from 35 in 2003 to 540 in 2007 (Dimitri Oberholtzer, 2009) .There is a high consumption of organic products in the U.S. The consumption rate continues to increase. As a result of this increase, the retail prices of organic food products increased from $3.6 billion in 1997 to $21.1 billion in 2008, (Dimitri Oberholtzer, 2009). The growth rate was partly as a result of the United States section of Agriculture (USDA) efforts of setting standards that gave consumers confidence in using the products. USDA also gave a guideline on how one would recognize that a product is an organic product. The consumption rate has however increased at a higher rate than the growth of the organic foods, thus creating a dearth in the supply of the products. This has mainly been attributed to the regulations that are required in converting and certifying a farmland to an organic farm.Product and marketing developmentIn the Asian countries the farmers lack confidence in the organic food production. once again, the supply of the products has been growing at a higher rate than the demand, thus farmers have been remaining with surpluses of their produces. The marketing organizations will at times fail to buy all the produces from the farmers, thus the farmers have to look for their own markets. This frustrates the farmers who will shift to other farm produces.Being a new and young developing mar ket, the producers have had to compete with unscrupulous traders. Again, the structure of marketing organization has had an effect in developing the market. Most of the marketing organizations were small organizations and they faced challenges, e.g. recruiting and retaining quality staff. Again due to the challenges of shortage of investments funds, they will go for direct marketing, such as home deliveries and mobile markets. There is a need for the producers and markets to unit and join forces in order to fight these unscrupulous traders.The Asian market is in the same position as the U.S. market in the 1990s where unaffiliated small chain outlets and food-cooperatives were the sole distributors of the organic food products. Currently these food products are mainly supplied in the supermarkets. This is a trend catching up in the Asian markets.There are ways to develop and ease support the marketing organizations for the organic food products in Asia. The local initiatives shoul d provide those strategies that eliminate intermediaries, thus reducing the prices of the products and thus encouraging more buyers, speckle at the same time promoting the producers. Any non-commercial orthogonal funding should come with with organizations own increase in capital investment. This assures continuity after the external funding is pulled out. Most of the marketing organizations start small whereby some do not even have an office, and operate from home. This may be fine to start with, but as the company grows, it should have an official location of operation.The location chosen is very important. It should be close and easily favorable to the customers and close enough to the producers. This gives it a professional appearance. The company should be particular(a) on the choice of produce it starts with, e.g., vegetables, and then add the products as it grows. price is crucial for the marketing organization, thus it should come up with the preferred pricing strategy . Most organic food products marketing organization prefer price differentiation. Another point to be considered is the connection between the producer and the consumer. This should be discussed so as to reduce disagreements between the two. The marketing organizations should learn to market themselves through the press. The marketing organization should learn the target market and sting updated on any new products that they may require.ConclusionThe marketing of organic food products is more advanced in the U.S than it is in the U.S. The success in the U.S. market can be attributed to development of policies and guidelines that especially encourages the domestic consumption. The Asian countries should learn from the U.S. and develop their own domestic market. In addition to this, there is a shortage in the U.S of the organic products. Proper marketing strategies in Asian countries should satisfy this demand in the US market. Something the Asian authorities should think about and a ct on.