Fresh foods export business in Sri Lanka and competitive markets

Abstract

The main objective of this research was to review the fresh fruit and vegetable export business in Sri Lanka and to identify parameters to face international competitiveness. The sub objectives were to review recent developments in fruit and vegetable export market in Sri Lanka, identify issues and constraints in improving fruit and vegetable export marketing system with enhancing their international competitiveness and finally establish a strategy to small producers to cope with increasing market competition. Research was carried out by using literature survey, secondary and primary data collection. The first and second objectives could fulfill by the literature survey, secondary data collection and third objective was fulfilling by the primary data collection. Evaluate the primary and secondary data by using tabular method and used the Structured Interviews method to collect the primary data. For the Primary data collection, was restricted to 15 senior executives from different agriculture- related departments and 10 respondents from each several area in the country which leads to 15 executives and 120 farmers for the entire research. Overall research findings evidenced that the world largest fresh food consumer’s (EU) consumption lowered for the rate of 3.3% and 5.5% for fruit and vegetable while the EU production lowered the rate of 10% and 7% for fruits and vegetables. Therefore the value of import leads to 4.9% annual growth. The Sri Lankan contribution was 0.04% of the world total exports. Sri Lanka fresh food export business had showed a positive boom in past years. The major constraints were low financial stability of farmers, seasonality of crops, high cost of production, low yield and high cost of air freight. Finally, discussed about the solutions for small producers to improve their export market competitiveness. Also recommendations for small producers, Government, private sector to cope with international competitiveness and finally stated the further research area