5.1 CONCLUSION CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS The fruit and vegetable export market of Sri Lanka is annual growing at the rate of 38.66% and 17.88% for the vegetable and fruit respectively in value and the growing rate of 17.6% and 14.58% for vegetable and fruit in volume for the time period of year 1999 to 2008. The major fresh food export markets for Sri Lanka were Middle East, Maldives and EU. In this research my target market was EU. Because EU quality standards were very high and if we can produce our fresh fruits and vegetables to the EU market, we can easily penetrate other markets easily and the largest fresh food consumer was EU During this period world largest fresh food consumer s (EU) consumption lowered for the rate of 3.3% and 5.5% for fruit and vegetable respectively in year 2007. Also between years 2003 to 2007, EU production lowered the rate of 10% and 7% for fruits and vegetables. Therefore, in year 2007 EU imported fresh fruit growth at the rate of 21% and 18% for the value and volume which leads to 4.9% annual growth for value. The imported fresh vegetable market was developed on the rate of 66% and 52% for value and volume. In year 2010 EU imports volume decrease 1.56% for fruit and 4.38% for vegetables. But the value growth at the rate of 2.72% and 10.13% for fruit and vegetables. In year 2002 Sri Lanka has 0.94% and 16% drop rate over 2001 for the exporting fruits and vegetables to Maldives while contributing 12.9% and 18.7% share of their total fresh fruit and vegetable imports with value of US$ 1.05million and US$ 1.93million respectively. 69
Price factor has not been the only criteria, which decides the import share of fruits and vegetables to Maldives. The percentage share of imports of fruits and vegetables into Maldives depends on the price, quality and the country of origin. The major competitors for Maldives fresh food market were India, Australia, and UAE. Sri Lanka has lost major portion of the share of Watermelon (fresh) from 44% in 2001 to 29% in 2002 when India has gained from 30% in 2001 to 51% in 2002. In the case of Carrot Sri Lanka had a share of 29% in 2001 and it has been reduced to 17% in 2002 while Australia has increased its share from 48% to 68% Sri Lanka s main competitors were India, Australia, Malaysia, and china like countries which have taken major percentage in world fresh food exports. In year 2007 the world imports contributing US $ 43,083 million whereas the Sri Lanka has contributed only US $ 15.09 million to the world fresh food export nearly 0.04%. Constraints like low economic profile of the farmers, lack of market intelligence, lack of high quality seeds, low yield, fragmented supply chain etc; were identified as the main issues and constrains. By the third objective steps were identified in order to strengthen the small scale fresh food producers and to promote them and converge the scattered small scale producers all over the country to one scheduled plan to maximize the fresh food export in Sri Lanka. These steps identified are described under the recommendation title. The previous chapters have clearly indicated the potential that exists in Sri Lanka for export fruits and vegetables. There are, however, several technological, financial and trades policy-related, fragmented supply chain issues that have been limiting exports. This demands that extra caution in growing, harvesting, handling, storing, processing and transporting are necessary. While traditional and conventional practices have adequately met the requirements of local consumers, the same does not hold true with exports. It is not simply enough to ensure the quality of the fruits and vegetables at the delivery point. It is recommended to take change the present 70
supply-chain management through the intervention of appropriate technology, human- resource development programs, policies and marketing strategies. 5.2 RECOMMENDATIONS Based on the findings and discussions of the study, the following recommendations can be suggested in order to improve the fresh Fruit and Vegetable export business. 5.2.1 Enhancement of Fruit and Vegetable Productivity Improve the supply and range of quality vegetable seeds and fruit planting material available to farmers at an affordable price. Improve supply and quality of inputs such as seed, fertilizer, agricultural chemicals and other appropriate materials. Compare seasonality of agro-ecological zones/soil categories for production to effectively compete with imported products. Promote agricultural diversification among small-scale farmers. Integrated Pest management (IPM) for fruits and vegetables are more effective and safety. Build up Irrigation and drainage systems for optimum growth of fruit and vegetable crops. 5.2.2 Improvement of Post-Harvest Practice Improve the access to appropriate storage and transport facilities to prolong shelf life of fresh vegetables and fruits and access to cool-stores for highly perishable products. Establish the Quality Assurance system for fresh produce for export through the appropriate testing and certifying facilities in the Country. Photo-sanitary inspections for exports to be in place in order to promote the agro-based exports to meet internationally required quality and safety standards in overseas markets. 71
5.2.3 ACCELERATED Marketing Development Improve access to credit. The appropriate credit schemes may be designed for farmers, small, medium-scale enterprises with low interest. Encourage the formation of Farmers, traders, processors and exporters groups/association. Fruit and vegetable marketing promotion/exhibition/ advertising campaigns to display the quality/ safety produce that is attractive to the consumers and for export. Set up the quality standards for Agricultural products. Research and Extension Support Services for fruits and vegetables operate through MAFF, which must have strong linkages to the private sector to support farmers/growers. Value adding and processing industries for fruits and vegetables may be established. Private Investors in horticulture need a single door for investment inquiry, and clear knowledge of the government-backed incentives available. Emerge niche/farmer markets for vegetable and fruit products to identify domestic demand of consumers for specific products. Promote Farming contract, methodology and experience related to contracting process with buyers and processors. Expand the Market Information Service, the utilization of the market information disseminated by extension officers. 72
5.3 LIMITATIONS There are some noticeable limitations in this research. 5.3.1 Limitations of Secondary Data Secondary data collection generally has been following limitations; - Unavailability - Low reliability - Less Applicability - Less Comparability However, based on the analysis of Secondary data collection Primary data collection can direct to overcome above limitations. 5.3.2 Limitations of Primary Data Collection and Sampling Primary data collection has the impact of both sampling and non-sampling errors. However, it is planned to construct research utilize effective research instruments to minimize these errors. 5.4 RECOMMENDATIONS TO FURTHER RESEARCH Further research can be carried out in the area of the supply chain management of export fresh fruit and vegetable and continuous supply to cope with an export requirement throughout the whole year. According to these research findings Sri Lanka fruit and vegetable export limiting due to some technological, financial and supply chain issues. However, Sri Lankan food exporters can match the quality required by the buyers. But the major issue is can t match their required quantity and continuously. 73