Research Report No 1 Marketing - 201206

8/7/2019 Research Report No 1 Marketing - 201206

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IC CU

The International Centre for

Underutilised Crops


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This report provides information on the feasibility of producing and marketing processed products from tropical

fruit species in three locations in Sri Lanka. This study, which is part of a larger South-Asian research project on the

processing and marketing of underutilised fruits, was conducted in the towns of Kandy, Galle and Horana and their

peripheries. Field-level primary data were collected through semi-structured interviews and qualitative and

quantitative approaches were adopted for the analysis. Samples were drawn using stratified random sampling and

cluster sampling methods.

The report presents information about consumer behaviour, and about the marketability of tropical fruit products. A

map of the supply chain for underutilised fruits products in Sri Lanka is also presented.

In general, consumers demonstrated interest in trying new products. Brand loyalty to most products was high,

however, which makes the introduction of new products difficult. The consumers interested in trying new products

cited a general lack of availability of these products as an impediment. This is aggravated by the reluctance of shop

keepers to stock new, untried products. All of this points to a need for structured advertising campaigns for new

products, or for stronger branding through group operations. Certification of new products through, for example,

the Sri Lanka Standards Institute can also be helpful.

A route taken by some of the more successful start-ups is to cater to protected niche markets, such as the canteens of

schools and government offices, thereby circumventing the need to engage with shop keepers and avoiding

competition from established branded products.

Small fruit processing enterprises generally have good access to the necessary processing infrastructure, such as

electricity, water and fuel. While micro-enterprises operating in rural area have access to waste disposal methods,

waste disposal is an issue of concern for those operating in urban areas. In addition, unreliable supply of electricity

was reported as a constraint to the jackfruit dehydration enterprises located in the periphery of the Kandy and

Kurunegala districts.

Despite these limitations, the research confirmed the potential for production and marketing of underutilised

tropical fruits in Sri Lanka.

Nine recommendations are offered to processors and development officials to support their efforts to establish and

strengthen small-scale tropical fruit processing enterprises in Sri Lanka:

1. Identify your market.

2. Encourage the retailers to promote new brands of processed underutilised fruit products.

3. Take advantage of consumers' brand consciousness.

4. Advertise the new brand.

5. Diversify the product palette.

6. Develop and maintain strong relationships within the market chain.

7. Obtain Sri Lanka Standards (SLS) certification for new brands.

8. Improve labour efficiency by using simple equipment in lieu of labour-intensive operations.

9. Facilitate access to good-quality packaging materials for the small and medium enterprises in remote areas.


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www.icuc-iwmi.org

IC CUThe International Centre forUnderutilised Crops

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Research Report No 1 Marketing - 201206

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