Growth Strategies for a Declining Market- the German Fresh Potato Market

Abstract

To determine potential growth strategies for the German fresh potato market, production area, harvested quantities, producer prices and consumption values for the German potato market were examined using trend analysis. German potato harvests were stable over time due to improved growing techniques. Producer longterm prices stayed stable despite their periodic volatility. Overall production area and levels of fresh potato consumption are undergoing a sharp decline. Furthermore, there is a significant relation between total yield and producer prices as dependent variables. In order to compensate for the reduction in consumption, a framework was developed to change the commodity status of fresh potatoes into a differentiated product with new market potential. A consumer and product orientated market segmentation and analysis was applied to the fresh potato market to identify trends and future opportunities. Application of these new differentiated products will help stop the decline of fresh potato consumption by attracting new customers in urban and rural areas. In addition, these new markets are expected to reduce the producer price volatility.