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Solving Oversupply in the Agriculture Industry

Woman picking an appleIt may seem impossible, considering the prices of produce in the market, but oversupply does happen. This year alone, pineapple farmers doubled their harvest because of the heat wave. While it may sound like huge profits for them, it can also mean losses. The fruits can only last for less than a week, whether they are stored in a fridge, or in boxes under an industrial tent. Companies like DomeShelter Australia could provide farmers with these temporary structures, but cannot give them the assurance that their crops will keep for long.
 
When it comes to farming, balance is the key. Farmers should be able to earn more than their capital. But costs of inventory and losses must not eat up these revenues. If you’re a farmer, you have to learn how to avoid an oversupply and learn how to deal with it properly if it happens:

Work with the Government

Agriculture is one thing. Trading is another. The latter can be complicated and broad, and it needs collaboration and intervention of various governments. For example, policies, market regulations, and export laws can cause the build-up of agriculture products in the market.
 
The growth of farming is multi-sector, so it pays to work with other stakeholders. You can bring your concern or plan strategies with your associations. Your organisation can also collaborate with the others. By doing this in a more united front, you can create a clearer and bigger voice.

Establish Other Marketing Channels

Countries such as the Netherlands, India, and the United States have developed apps that can help keep track of food waste and make excess or leftover produce available to the public at a much lower cost. Develop a similar plan that could use technology for your agricultural business. Besides offering your produce to large grocery shops or markets, consider making a part of your farm open for harvesting by the visitors for a fixed price.

Protect Your Crops

With oversupply, your concern isn’t just the sale but the protection of your inventory. While they’re still not in transit, you need to prevent harmful environmental elements from damaging the goods. For something cost effective, you can build an industrial tent. Not only is this portable, but it is also easy to dismantle.
 
Use such challenges as an inspiration to be innovative and ingenious. You might tap an under-served market or develop a whole new scheme of selling produce. 
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