Product quality is of course one of the basic factors. But in international trade, which market the product will be sent to, that market’s regulations, buyer expectations, certification scope, quality specifications and logistics conditions can also affect the product’s commercial value.
That is why, in organic product trade, we need to look not only at the question “Is this product high quality?” but also at the question “Which market is this product suitable for?”
Certification can matter more depending on the market
In organic trade, different markets may have their own regulatory and certification requirements.
Even if a product’s organic status is correct, whether it is consistent with the certification scope requested by the target customer or target market should be assessed separately.
A product being organic and it being suitable for trade in a particular market are therefore not the same thing.
Quality specifications can vary
The same product may be requested with different characteristics by different customers.
One buyer may want a certain moisture content, purity, grain size or other quality criterion. For another buyer, a different characteristic may matter more.
So the product’s physical or technical quality is not enough on its own.
The product’s quality should be assessed together with the specification of the customer who will buy it.
Logistics is also part of commercial value
The cost and difficulty of getting a product from its point of production to the target market also affect the commercial assessment.
Which warehouse the product will leave from, the shipment method, packaging, transport distance and delivery terms can change the product’s final commercial value.
That is why, in international trade, rather than looking only at the product price, it is necessary to assess the total commercial structure built up until the product reaches the customer.
The same product can have different buyers
A product does not become worthless when it does not meet the specification requested by a particular customer.
Another customer may be requesting different characteristics, and the same product may be suitable for that customer.
That is why what matters in product trade is not just buying the product, but being able to match the product with the right market and the right customer.
Why does market knowledge matter?
A trading company’s job is not just to find products and make offers to customers.
Understanding which product is in demand in which market, which characteristics customers look for, their certification expectations and logistics conditions is important for making the right commercial decisions.
That is why, at Biosmyrna, we do not assess products only by their own physical characteristics.
We assess the product’s source, quality characteristics, organic status and for which customer and market it creates a meaningful commercial opportunity together.
The real issue in trade is the right match
Finding a good product is only the beginning of trade.
The real value is being able to bring the right product, with the right quality and certification terms, together with the right customer who needs it.
Because in international organic trade, a product’s real value is determined not only by what it is, but by whose needs it can meet and on what terms.
