The improvement of the competitiveness of all products is and remains in the innovation introduced in each link in the value chain. In the agricultural business, it goes from the semance through planting techniques to go beyond the final consumer. ''Innovate or perish''

For high value added agricultural products, with high input prices, I do not see large margins to increase competitiveness. However, competitiveness is the aility to be competitive in the market.

I would suggest to focus the attention on the marketing. Let me explain better.

If the product is high value added, it should contain characteristics that the consumer would appreciate, or at least that would be apprecated by a niche of concumers.

A strategy of input costs reduction seems not feasible (as you said input prices are high), neither reducing the final price of the product (I assume that you alreay sell at the lowest possibile price to be in the market). In this framework, strategic marketing may make the ifference and increase competitiveness.

Let the consumers know why these proucts are high value added, why are different, why they can satisfy their needs. You will gain market shares and increase your competitiveness.

Adding value necessitates the analysis of all intra- and inter links of the supply chain at the macro, meso, micro, and micro-micro levels. One needs to pay particular attention to enhancing coordination and motivation through the adoption of organizational innovations. For example, various forms of agricultural collective entrepreneurship organizations have been formed as a means of enhancing, among other things, competitiveness (e.g., new generation cooperatives, net-chains, and various types of hybrid organizational arrangements that stand somewhere between spot markets and vertical integration.

There is always an edge to create in a competitive market. Sometimes this could be by increasing an input marginally though that may reduce the profit margin. For example a high value chain product meeting the need of large niche of consumer will automatically leads to more customers that will cover the marginal cost of input used.

Another way can be to create an intermediate value product with recipe to change it to many other menus to the taste of the consumer.

It isnt sufficient innovation in production, it is necessity innovation in marketing, especially innovation in food marketing.

Dear Golban

The strawberry, pepper and hardwoods are among the main agricultural products of Brasilia . But it is necessary to maintain the competitiveness of production by adopting new technologies and Integrated Production ( IP- Brazil ) - one based on encouraging the adoption of good agricultural practices system.

To ensure the quality and marketing of local production , Emater - Brasília , together with the Ministry of Agriculture , Embrapa Vegetables , Department of Agriculture, and other partners , will work to improve the production of hardwoods , guava, passion fruit and initially strawberries and peppers in the Federal District . The proposed tool is the adoption of IP Brazil , which guarantees certification and product differentiation with consumers .

The system results in safe food with monitoring at all stages of production, residue analysis of pesticides and use of appropriate technologies that enhance the way you work. The procedures raise the standards of quality and competitiveness of products to the level of excellence while reducing production costs .

In the case of strawberry, guava and passion fruit, there are already established technical standards for IP. This allows longer identify with producers from Brasilia the possibility of adoption of the system . The chili and broadleaves still need specific technical standards , which must be compiled and validated by a committee formed by representatives of producers and technicians .

The coordinator of the Integrated Agricultural Production Chain of the Ministry of Agriculture , Sidney Medeiros , told participants the operation of Integrated Production . Membership is voluntary , but the producer who opt for the system must comply with all guidelines. " The rules are related to empowerment of rural workers , management, environmental responsibility , food safety and traceability and work ," .

The Ministry of Agriculture is responsible for the publication of standards , while certifiers accredited by the National Institute of Metrology , Standardization and Industrial Quality ( INMETRO ) make audits and issue the stamp program.

source:

Mazzaro Carolina - Social Communication - EMATER

Strategic and efficient marketing would add up to marketing costs. Then the prices would also increase or shoot up again. Isn't it? As in the case of many organic products being sold in India.

Another suggestion would be to increase and maintain the quality of the agricultural products by storing and handling them properly, which may increase their competitiveness in the market.

As the scenario is becoming global, market is becoming somewhat quality conscious, as maintaining that seems a way to competitiveness.

There are different ways that competitiveness can be improved.

(a) Study and re-organize the value chain, eliminating steps or parts that make marginal value contributions. Identify possible ways to increase value that have a useful cost-benefit relationship.

(b) Increase the knowledge of customers, stakeholders and members of the value chain about the value-added to the products and their benefits. Strategic marketing, community leaders support, product-culture relatedness, quality or grade certification and preparation of instructional materials to be given away free of charge to schools may be some options.

(c) Make sure that products are greener and sustainable- and that you have some way to prove it.

(d) Introduce knowledge and technology in production, storage and distribution in order to make processes leaner and more efficient use of inputs.For example, Information technology (software and hardware) and satellite images can be of help to decrease the quantity of water that is used; information technology and mobile equipment can help with traceability issues, etc.

(e) Show people new/better uses for products, new occasions for use, etc. Give them a "taste" of the product in useful settings.

Than you very much for the answer. It is really interesting how to increase competitiveness in a dynamic medium, when there are many factors which can change independently from each other.

I think it varies with different goods, but there are two basic competitive strategies: 1) cost reduction and 2) product differentiation. You achieve competitiveness by "creating" value for the consumer or buyer, and remember that "value addition" is completely different to "value creation".

Sometimes you can create value through information you already have, which has absolutely no cost for the agrifood chain, e.g. many beef cattle chains have information about product tracebility and share it within the chain, but not towards the consumer. By making this information available for the buyer, you're creating value with a minimal cost, because you already have incurred in the sacrifice of gathering and sharing information. This would be value creation through information.

Another way is to modify some attribute or characteristic of the product that satisfies some of the consumer's need. Value is a function of two variables: Utility and scarcity. Value is a subjective dimension, specific for each individual.

From a systemic perspective, you can work on the "institutional aspects" of the agrifood chain. It depends where the chain continuum lies, one thing is a developed country and completely different developing countries. In both you can focus on "transaction costs", which are the costs of the interfaces or transaction units. In developed countries you can emphasize "contractual agreements" to minimize the TC, i.e. design safeguards to mitigate uncertainty, opportunism and bounded rationality.

When dealing with developing countries the focus should be on the "institutional environment", i.e. the rules of the game, which include the system of economic incentives, to be aligned with productivity and competitiveness.

When dealing directly with the cost issue, either Production or Transaction costs, you should keep in mind that actions of "coordination" within agrifood chains are very important, because many times there are duplicated activities or actions that do not create value and imply an economic sacrifice.

The above mentioned are general concepts and generalizations, but you can perfectly apply them to specific cases with operational outcomes.

I really hope this can be of some help.

In the initial question I would argue that you confuse value to the customer and value to the business. High value to the customer implies the customer is willing to pay more. High value to the business, from a financial perspective means more profitable in the sense of a return on investment (ideally measured by the impact on free cash flow). A product which is high value to the customer is not high value to the business if the production of that product is expensive. So the question is really, what can the business do that will maximize its return on investment. It gets at this by deciding how to raise price, lower costs and lower investment.

marketing depends on reach to wider audience, who may be Immediate / Potential Users or Consumer / Buyers, so the bigger picture that is created is the one get the product as a ready reckoner when the demand arises..

https://www.researchgate.net/publication/262108055_Big_Picture_-Marketing_Innovation?ev=prf_pub

Data Big Picture -Marketing Innovation