The current marketing of agricultural products in general, and of bananas in
particular, poses special problems for Eritrean farmers. Poor climatic conditions
coupled with crude and inefficient agricultural technologies render agricultural
output sub-optimal. The major production problems include shortage of capital
and scarcity of land; shortage of farming materials; spoilage of bananas during
harvesting due to inappropriate harvesting techniques and facilities and lack of
technical know how. In addition, the main marketing problems comprise transport
problems to stores; general storage problems; lack of information and spoilage
during transport.
Taking the above into account it should be noted that current trends towards the
increased globalization of markets, trade liberalization, advances in information
technology, consumer preferences and improved logistics means that the
competitiveness of fruit industries in various regions and countries, as affected by
the performance of their supply chains, is becoming increasingly important and
will be even more important in the future.
Cognisance should also be taken of the fact that much confusion exists regarding
the exact meaning of the term competitiveness. Comparative advantage and
competitiveness are related, but are often mistakenly exchanged for one another.
Comparative advantage explains how trade benefits nations through more
efficient use of their resource base when trade is totally unrestricted. Competitive
advantage defines trade patterns as they exist in the real world, including all the
barriers to free trade ignored by comparative advantage (Worley, 1996). Vitally important is to take cognizance of the fact that the establishment of a competitive
supply chain is a prerequisite for an industryâs competitiveness and success.
Based on this analysis, this study proposes what should be done to achieve a
workable SCM for the banana industry in Eritrea. In its broader sense, the
proposed structure of the SCM involves the introduction of horizontal strategic
alliances between existing banana producers and the marketing group and a
vertical relationship along the supply chain.
Given that bananas comprise a considerable portion of the international trade
makes it significant to this study. Bananas are also symbolic of the wide range of
injustices present in international trade today. The Lomé Convention, which
placed certain Latin American banana exporting countries at a disadvantage, was
the root cause of trade disputes, and the eventual replacement of this Convention
will have an impact on the future banana export prospects of ACP countries.
Eritrean producers, like those of other ACP countries, therefore have little time to
adjust and become competitive against âdollarâ bananas on the European market,
which at this point enjoy a production cost and quality advantage.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:ufs/oai:etd.uovs.ac.za:etd-06172005-080120 |
| Date | 17 June 2005 |
| Creators | Zereyesus, Yacob Abrehe |
| Contributors | Prof A Jooste |
| Publisher | University of the Free State |
| Source Sets | South African National ETD Portal |
| Language | en-uk |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.uovs.ac.za//theses/available/etd-06172005-080120/restricted/ |
| Rights | unrestricted, I hereby certify that, if appropriate, I have obtained and attached hereto a written permission statement from the owner(s) of each third party copyrighted matter to be included in my thesis, dissertation, or project report, allowing distribution as specified below. I certify that the version I submitted is the same as that approved by my advisory committee. I hereby grant to University Free State or its agents the non-exclusive license to archive and make accessible, under the conditions specified below, my thesis, dissertation, or project report in whole or in part in all forms of media, now or hereafter known. I retain all other ownership rights to the copyright of the thesis, dissertation or project report. I also retain the right to use in future works (such as articles or books) all or part of this thesis, dissertation, or project report. |
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