How packaging enhances farm produce sales

Smallholder farmers usually get low returns on their investments as they attempt to sell their farm produce to middlemen that come to the farms. On the other hand, the produce is taken to the market to be sold.

These produce get to the market in such dismal state whether they are taken there by farmers or middlemen. This reduces the bargaining power of the sellers so the merchants at the market under-price the farm produce. 

Bosede Oboh, a farmer now into packaged foods x-rays the appalling manner farm produce is normally transported to the market. The produce which may be tomatoes, yams, leafy vegetables and so on are stuffed into baskets and stacked into the truck, usually a lorry.

Due to the fact that there would not be space for all the merchants, attendants or conductors in the front seat of the truck, they sit on top of the stacked farm produce at the back of the truck.

The produce are transported over very long distances in the open containers of the truck and are subjected to the vagaries of weather- hot sunshine, rainfall, low humidity and so on. In addition, the baskets are swung to different sides as the truck driver navigates through the roads full of potholes.

At the open market where they are retailed, the produce is sorted and the leafy vegetables, yams and so on are also placed in open containers with flies and dust perching on them. It is no wonder then that prospective customers attempt to buy them at the lowest prices possible through haggling.

But when such foods either processed or in raw forms are well-packaged, they attract a premium price. According to Euromonitor, an international market research firm, packaged food is one of the best performing consumer goods industries in Nigeria. Euromonitor report says, “Current value growth in packaged food was stronger in 2013 than the CAGR recorded over the entire review period as growth in the category continues to accelerate in line with the ongoing shift among Nigerians away from unpackaged, unbranded food towards branded packaged food as well as general trends such as the rapid growth in the overall population of Nigeria, increasing urbanisation and changing consumer lifestyles.

remains creative innovation in various packaged food categories such as noodles, dairy and bakery as well as strong below-the-line and above-the-line marketing activity, with direct distribution a key to companies winning over consumers.” 

The report further says, “The rise of modern retailing contributes to growth in new products. During 2013, packaged food continued to benefit from the fast growth of modern grocery retail channels such as supermarkets and hypermarkets, with chains such as Shoprite and Spar prominent.

In addition, the number of small independent grocers, which tend to self-label as ‘supermarkets’ in Nigeria despite their small sizes, is increasing. These outlets tend to stock mainly packaged food, generally of Western origin. Competitive landscape is fragmented with strong performances from local players.”

However, in recent years, as more farmers, and entrepreneurs acting as middlemen continue to package raw or processed Nigerian foods in clean containers, these foods are gaining wider acceptance.

OLUYINKA ALAWODE

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