The problem of oversupply

A special in-depth look on Radio National’s A Country Breakfast at one of the issues that seems to plague nearly everyone in agriculture: oversupply.

It seems that no commodity can escape the problem and it can turn a good season bad.
When everyone’s having a good growing year, the market is flooded and prices drops.

So what can be done about the problem?

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One Response to The problem of oversupply

  1. Sitati Joe Dawo says:

    Its true especially with agricultural produce and perishables.However, there are ways of value addition and preservation that can assist in overcoming the oversupply challenge that is created by seasonality and cyclicity.

    One can also preserve the produce for resale when the demand is high due to declined supply. All in all it comes down to understanding demand, seasons, and consumption trends, then work out a formula to maximize on each scenario. Playing with the 4ps to get the best mix for each case.

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