Similar to all the industries or sectors agriculture market research is a quite fundamental and beneficial part of the agriculture sector as well. The reason behind it is that conventional agriculture business model incorporates farmers marketing products to known buyers.
Additionally, in numerous cases, primary farming and growing decisions which includes what to grow, how much to grow, when to harvest, how to store and ship, etc. were made on a legal agreement basis. It was a typical risk-reward exchange, with most farmers agreeing on comparatively smaller profit margin in return for a confirmed procurement.
Though, these days the farming sector has become far more sophisticated, and multifaceted in comparison to a few years back. Today, there are an abundance of value-added products and services, along with growing global competition, changing customer behavior, and new buyer personas.
Also, a lot of farmers these days are quite educated possessing great degrees. This is why they rely on the dynamics of market and agriculture industry trends. Ultimately, this means farmers are now looking forward and foreseeing what is coming down the pipeline next month, next year and next decade, and that is where agricultural market research enters the picture.
Below mentioned are 2 biggest advantages of relying on market research for agriculture:
- Selling an Idea – While having a viable idea is obviously critical, it is not adequate. This is why price position is strategically chosen to ensure that ROI is achievable within a realistic timeframe. Agricultural market research helps discover all of this information, and guarantee that innovative products and services will profitably sell in a cutthroat marketplace.
- Prospects evaluation – Agricultural market research has taken a pragmatic, down-to-earth look at the viability of introducing a new product or service in the market. It also verifies whether it will be profitable and sustainable. You may even check this great post to read about the rise of smart farming.