Strategic Agricultural Export Marketing in South Pacific Island Nations

Agribusiness firms in small developing countries face a special set of circumstances when formulating strategic marketing decisions. The nature of small economies usually means that agribusiness firms must have a strong export orientation, but they have little influence in the markets to which they export. The potential for domestic market expansion is limited. Information needed for developing export marketing strategies is often lacking, or difficult and expensive to obtain. An associated feature is the high degree of risk in export marketing, caused particularly by the variability in the world markets in which these nations sell their agricultural commodities. The importance of agricultural exports to economic development in these nations means that governments intervene a good deal in the export processes. Hence, government strategic decisions also affect agribusiness export performance. Finally, the number of competing firms is often small because of the smallness of the agricultural economy and the desire by agribusiness firms to avoid severe diseconomies of small size. This set of circumstances is examined in this paper in relation to a number of small South Pacific island nations (SPINS). Emphasis in the analysis of the strategic marketing concerns of agribusiness firms in these nations is on the competitive marketing strategies adopted in both the domestic and international sectors of the agricultural export markets. The special strategic marketing problems these firms face and the ways in which they have sought to overcome them are the main focus of study. But some attention is also given to the strategic decision-making processes of governments in the region, because they also have an impact on export strategies and performance of agribusiness marketing firms.