How can Packaging Boost Your Agricultural Exports Business?

By Cogoport | 13 Feb 20 | Read Time: 3 minutes
How can Packaging Boost Your Agricultural Exports Business?

With the increasing population, food production demand also increases. Agricultural packaging helps farmers and the exporters to deliver food in the handiest approach without any loss..

Packaging prevents unnecessary waste post-harvest and during the processes of production, storage and transportation. It ensures short and long-term stability between the farmers and consumers.

Packaging for agricultural export business

The packaging is rising an essential element for your export operation, impacting the safety, cost, communication and even marketing of your agricultural products. Agricultural packaging has gained immense popularity across the world. According to Statista, the global agricultural packaging market is expected to reach $5.02 billion by the end of 2023. If you want your agricultural products to reach different horizons across the world, you should consider the features, importance and benefits of packaging.

  • Safety of agricultural products

  • Accurate handling instructions

Importance of packaging in the export business

From the contractual point of view, you are responsible for the packaging of agricultural products such that it withstands the transportation process. If the packaging is damaged in the port of destination, then the handling of the cargo is not considered responsible.

Responsibility of seller: According to the new edition of Incoterms 2010, the seller will be responsible for any damage happened to the products during the journey.

Security of goods:

The primary purpose of the agricultural packaging is not limited to protecting the cargo during the international logistic process. The packaging is also an essential element of the product’s marketing, as it conveys a strong image of the company in front of the consumers.

Cost saving:

Packing affects the cost of your products. The packaging must adapt to the cargo units deployed to optimize the use of trucks, containers and the other form of transportation.

Storage and organization:

Packages end up taking more space when not compatible with pallets and thus, waste up to 20% of the container’s space, adding 40% extra cost to in the price of your product.

Handling information:

The packaging is also essential in terms of the instructions and other handling information. How the carrier, individual and the cargo handle the products will rely on the knowledge of the packaging. The information on the boxes, help the transporters to stack the boxes. The boxes could be stacked upside down, damaging the products when there is no instruction on the packaging.

Packaging and labelling functions:

In accord with the importance of packaging, the packaging must have these functions to facilitate the transportation process without any hindrance:

  • Protect your cargo during international logistics

  • Communicate your brand with the consumers

  • Your essential constitutional element of marketing

  • Reflects your customer’s cultural value

  • Instruct carriers how the package should be stacked or handled

How does packaging boost your agricultural exports?

You should consider the below fundamentals to boost up their exports across the world.

1. Protection of goods

For agricultural goods, protection of products is necessary, and as the exporter, you have to select the right packaging material to prevent damage. You can request samples to test the packing materials and packaging. The packaging should withstand the transportation process.

The means of transportation also plays a vital part in packaging as you have to select the material based on the transport used and the distance covered by the transportation company. It is necessary to use different kinds of material to target different markets.

2. Business communication

The packaging is something that communicates the product’s features to its buyers, making it the essential marketing tool for exporters. For agricultural products, you can instruct the consumers about the ingredient or can even warn them about the allergies.

Before initiating the export operation, preferences of the consumers in the target market should be assessed to ensure that the package meets the consumer’s expectations.

3. Indicating the size of the package

The agricultural packaging and its material must be optimized to maximize the use of cargo units. The packaging should be designed in a way that a maximum number of packages fit in each box. The size of the boxes should be considered for pallet use.

EUR-Pallet is the most commonly used pallet across the world, which measures 1,200mm X 800mm X 144mm, which is approximate to 47.2inches X 31.5 inches X 5.7 inches. With these dimensions, the exporters can ensure maximum utilization of the space. It would help if you considered these calculations before packing your agricultural products.

4. Information for handling

The package must indicate how it is handled. The agricultural exporter must mention how the product should be processed on the boxes. They can print indications along with the symbol like “this side up,” maximum stacking height,” handle with care” and many others.

All these indications should be listed outside the packages so that the carrier can transport them without damaging the products. Besides, it would help if you also considered other indications which are mandatory in your company’s product include precautions regarding the exposure to sunlight, damp and extreme temperatures.

5. Reflects your customer’s cultural values

The information on the packaging should reflect your customer’s cultural values. No matter where does your customer resides, you should consider the local language and other aspects of the information.

In Turkey and Austria, green is well-accepted colour, while in China, red and yellow is accepted because of the royalty in its culture. You should conduct proper cultural analysis before designing your package to ensure and enhance the cultural values of your potential customers.

What does this ultimately mean?

A right package can not only protect your shipments but also foster sales and increase the perception of value among your customers. Thus, packaging an important aspect which cannot be ignored to boost up the agricultural export across the world.

Exports