Somali farmers are being ripped off by Saudis.

[Aarka.]

Somali farmers are being ripped off man, what tf is this

 

[The alchemist]

Prices are driven down when you're vying for market access, the dynamics of which determine the scale when the economic size of the importer is severely asymmetric relative to yours when you have tons of produce that you need to be shipped.

A company's brand power is highly reliant on the economic conditions of nations. You can have a premium product but end up selling for cheap because you're desperate while the recipient can find alternatives. Alternative buyers for the shipper might incur higher losses as logistical and transportation with forging new reliable long-term contractual agreements will place new obstacles that can cause cost-effectiveness issues.

Other factors come into play. Namely, the geopolitical interests that may affect the economic relationships between countries.

 

[Aarka.]

Prices are driven down when you're vying for market access, the dynamics of which determine the scale when the economic size of the importer is severely asymmetric relative to yours when you have tons of produce that you need to be shipped.

A company's brand power is highly reliant on the economic conditions of nations. You can have a premium product but end up selling for cheap because you're desperate while the recipient can find alternatives. Alternative buyers for the shipper might incur higher losses as logistical and transportation with forging new reliable long-term contractual agreements will place new obstacles that can cause cost-effectiveness issues.

If Saudi produces tons of lemons of their own that they need to ship. And Somali farmers are desperate. why are our farmers continuing to pursue this market? Why not search for new markets that need your products?

All in all, selling 1kg of lemons for just 3 USD is an absolute rip-off. How the hell are they making any profits from that?

 

[Hotchick12]

Can they even sell that price in Somalia

 

[JamalFarah]

If Saudi produces tons of lemons of their own that they need to ship. And Somali farmers are desperate. why are our farmers continuing to pursue this market? Why not search for new markets that need your products?

All in all, selling 1kg of lemons for just 3 USD is an absolute rip-off. How the hell are they making any profits from that?

Somali exports face a challenge because businesses tend to stick with the same partners in Saudi Arabia, the UAE, and Yemen for generations. Due to limited options, Somali products, which are organic, end up being sold for lower prices becuase of that pressure.

To fix this, Somali businesses need to explore new markets in East Asia, India, and Europe. However, a big hurdle is the lack of enough cargo ships owned by businessmen. Having more ships would make it easier to transport products and expand the export reach.