SECTION 4: Market and Market Opportunities
SECTION 4: Market and Market Opportunities
In-depth market analysis will help us assess the value chain growth and competitiveness.
In VCA preparation, discuss markets into two segments based on the geographics: export and domestic markets.
The discussions about the markets (both export and domestic) must be consistent with the geographical flow of all product forms covered in the VCA.
Before conducting the market analysis, it is important to revisit first the scope of VCA in terms of product form to determine the scope of market analysis to be conducted.
Describe and analyze existing and evolving market status/characteristics and standards (product and process standards) both export and domestic markets, and its implications to upgrading trajectory. Provide an up-to-the-moment snapshot of the market status.
a. For globally traded commodity or product forms, include statistics/data on:
- World exports and imports trends
- Import requirements of the country and region under study if Philippines is importing
- Exports of the Philippines and/or the region to destination countries if the Philippines is exporting
- Potential markets possibly including countries which are not currently buying the commodity/product forms from the Philippines
Other info such as the following should be presented as well:
- Relative position of the Philippines and/or region under study in terms of imports and exports
- Reasons and industry implications of market trends
- Market characteristics (e.g. importing country's regulations, standards, etc.) especially if niche market
b. For domestically traded commodity or product forms, include statistics/data on:
- Location of major markets within and outside the region
- Volume required by local markets (e.g., as seeds, feeds, processing, exports)
- Potential local markets such as processors which are not yet supplied with the produce of the region under study.
Other info such as the following should be presented as well:
- Relative position of the region uder study in terms of supply and demand
- Reasons and industry implications of market trends
- Market characteristics (e.g., preferences, standards, etc.) especially if niche market
For data gathering activity, consult with the key informants from the DA RFO AMAD, Field Operations Division, concerned agencies (e.g., PCA for coconut, Philfida for Abacca), and/or other units. Survey data/information to be generated can be further discussed in a group discussion among industry players.
The results of this section will be used to estimate the size of the demand-supply gap (e.g., "unmet demand" in target markets) that could be targeted for investment, to help in the market positioning of the value chain being studied, and to determine issues and concerns in the market.