"Reaching ambitious goals requires following a planned process, stage by stage—don’t skip a stage or rush it."
I am often approached by African business people and farmers seeking to increase their income by exporting their produce to premium markets that require stricter supply demands and quality standards. There is ambiguity, confusion, and, therefore, a lack of focus on the factors responsible for the scarcity of fresh produce exports from developing countries. For example, when I conducted a questionnaire on LinkedIn, I received dozens of answers, all of which were correct. However, tackling all these factors simultaneously prevents focus, which stifles any initiative and genuine progress.
Below, I share my insights and a prioritized list of critical factors used in the Dream Valley program to transition from locally-oriented to export-oriented agriculture. This shift is fundamental for increasing income per hectare for farmers and partners in the value chain. Note that our basic unit of production—and thus our measure—is the hectare, so I focus on "income per hectare" rather than "income per kg."
Why make the effort of exporting? Because it holds the potential to transform your life swiftly and those of your people, as well as the strength of your national economy, like no other initiative can. Developing countries with non-exporting farmers often have incomes ranging from just $50 to $500 per hectare. By contrast, this value commonly ranges from $5,000 to $50,000 per hectare in exporting-oriented countries. This stark difference underscores the tremendous economic potential that exporting offers to Africa's farmers and communities—and the same holds for all developing countries.
The Status of Fresh Produce Export
Africa's favorable climate, abundant land, and high global demand for fresh fruits and vegetables give the continent immense potential for agricultural exports. Yet, fresh produce exports from most African and Asian countries remain minimal and almost insignificant. This begs the question: What's holding Africa's agricultural export potential back, and how can these barriers be overcome?
The Benefits of Fresh Produce Export
Fresh produce export has the power to transform local economies. It generates a steady flow of foreign currency, creates well-paying jobs, and raises income for farmers and others involved in the value chain, from cultivation to export.
Growing up in Israel, I saw how fresh produce export is central to agricultural success. The entire value chain supports farmers' efforts there, and any farmer can effortlessly join the export market. Fresh produce exports are a source of national pride and an economic indicator of a country's organizational and management abilities.
Through Biofeed's eco-friendly Freedome solution for fruit fly quarantine pests, I've seen firsthand how effective pest control can improve yield quality and open doors for export, boosting farmer incomes and community prosperity. In contrast, when farmers are excluded from export markets, they and their countries "leave money on the table." As it stands, African countries lose billions in unrealized revenue each year due to these challenges. Even if we are late by many decades, isn't it time we change that?
Challenges Facing Farmers
If fresh produce exports hold such clear benefits, why are so few African farmers participating?
Most farmers I've met in Africa and Asia are eager to export, understanding the potential for increased income and improved quality of life. However, various barriers make this goal difficult to achieve. Let's examine what it takes for fresh produce to reach global markets.
The Basic Requirements for Export
Exporting fresh produce is not as simple as selling locally. Farmers and countries must meet a series of rigorous criteria to access international markets:
· Strict Quality Standards – Farmers must meet the high standards expected by target markets, such as zero chemical residues and freedom from quarantine pests (e.g., fruit flies).
· Certifications and Documentation – Compliance with standards, like Good Agricultural Practices (GAP), is mandatory, requiring farmers to document and verify that their produce meets these expectations.
· Quantity and Yield – High yields per hectare are crucial for covering export compliance costs. For example, while African mango orchards typically yield around 5 tons per hectare, in Israel, yields can reach as high as 50 tons per hectare. Increasing yields is essential for achieving export-worthy quantities.
· Infrastructure – Governments must provide necessary infrastructure, such as efficient transport, storage, and certification facilities.
Without meeting all these requirements, export becomes a challenging, often impossible feat for most farmers.
The Potential vs. Reality Gap
Today, most African farmers do not meet several of these essential criteria, and many countries lack the infrastructure to support them. The export value chain—from harvest to market—is complex, costly, and fraught with obstacles. For instance, poor road infrastructure and insufficient cold storage facilities frequently reduce produce quality before it leaves the country.
To illustrate, careless handling during post-harvest stages can reduce the export rate by up to 50%. In addition, without accessible laboratories to verify compliance, enforcing standards becomes challenging, resulting in low-quality products sometimes reaching markets and damaging a country's export reputation. Furthermore, the logistical precision required for export can clash with local norms around flexible timing, adding yet another layer of difficulty.
A Way Forward: The Dream Valley National Export Project
Dream Valley is addressing these challenges holistically, tackling each part of the export value chain simultaneously. Built around a qualified, experienced managerial team, Dream Valley collaborates closely with government entities to transform the potential of fresh produce export into reality.
Key Components of the Dream Valley National Export Project
Dream Valley's strategic, multi-faceted approach empowers farmers and strengthens agricultural export infrastructure with core components that include:
· Meeting Export Quality Standards – Farmers receive support to meet international markets' stringent quality and safety requirements, ensuring they consistently deliver high-quality produce that meets global expectations.
· Strengthening Documentation and Compliance – Through collaboration with local authorities, Dream Valley establishes robust systems for documenting and verifying compliance. This ensures standards are met and enforced, boosting credibility and facilitating entry into international markets.
· Increasing Farmer Yields – To compete globally, Dream Valley helps farmers achieve yields comparable to those of the world's top agricultural producers. This improvement makes export both a viable and sustainable option.
· Increasing Export Volume by 500% in Five Years – Dream Valley's ambitious volume targets aim to increase fresh produce exports significantly within five years. This scale supports national economic growth, enhances food security, and strengthens local agricultural industries.
· Accessing Premium Markets – Premium markets offer substantial returns, which offset the extra costs required for meeting high-quality standards, investing in improved infrastructure, and ensuring compliance. By reaching these markets, farmers secure profitable returns that drive their growth and strengthen their communities' economic stability.
· Empowering Farmers with Technology – Innovative tools and solutions, such as Freedome's eco-friendly fruit fly pest control, help farmers enhance their crop quality and increase yields, making export compliance more attainable.
· Addressing Funding Challenges – Meeting export requirements can be costly, especially for smallholders. Dream Valley addresses this by working with financial institutions and strategic value chain partners to provide funding solutions through innovative business models, enabling farmers to invest in the necessary upgrades and meet the standards required for premium market access.
Success Stories: Lessons from Peru and Chile
The agricultural success stories of Peru and Chile demonstrate the transformative potential of fresh produce exports. Both countries invested heavily in quality standards, robust infrastructure, and compliance, enabling them to access premium markets and achieve remarkable export growth.
Peru: In the early 2000s, Peru's agricultural exports were valued at approximately $645 million. By 2023, that figure had soared to over $9 billion, thanks to a focus on high-value crops like avocados, blueberries, and grapes and a commitment to meeting international standards.
Chile: Chile's agricultural export growth has been similarly impressive. In 1990, Chile's agricultural exports were around $1.5 billion. Today, they exceed $18 billion, with products like wine, cherries, and grapes reaching premium markets globally, supported by strong export infrastructure and compliance with stringent standards.
By embracing a similar commitment to quality and infrastructure, Africa could replicate these successes, enabling its farmers to reach premium markets and unlock economic prosperity.
Learning from the Past, Building for the Future
At Dream Valley, we believe that past failures hold valuable lessons, not roadblocks. By applying novel advanced business models, we create a sustainable path toward a future where Africa's agricultural potential translates into tangible, global success.
The Path to a Greener World
For a greener world—free of sprays and full of joy—we must address each barrier with a fresh perspective and a commitment to empowering Africa's farmers.
Top Challenges to Address in Fresh Produce Exports
· Quality and Certification Standards
· Infrastructure and Logistics
· Access to Premium Markets
· Yield Improvement
· Funding Solutions
TAKEAWAY
Ø Strict quality standards are crucial for export success.
Ø Certifications and documentation establish credibility in international markets.
Ø Reliable logistics ensure quality from farm to market.
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More on the October 7th genocide in South Israel:
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Here are ways you can work with me to help your rural communities step forward to shift from poverty into ongoing prosperity:
* Nova Kibbutz and consultancy on rural communities' models.
* Local & National programs related to agro-produce export models - Dream Valley global vertical value and supply chain business model and concept connects (a) input suppliers with farmers in developing economies and (b) those farmers with consumers in premium markets.
* Crop protection: Biofeed, an eco-friendly zero-spray control technology and protocol.
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"Mental and Economic Freedom Are Interconnected."
See you soon,
Nimrod
Dr. Nimrod Israely is the CEO and Founder of Dream Valley and Biofeed companies and the Chairman and Co-founder of the IBMA conference. +972-54-2523425 (WhatsApp), or email nisraely@biofeed.co.il
P.S.
If you missed it, here is a link to last week's blog, “The Invisible Bonds of Life".
P.P.S.
Dream Valley is a field-proven disruptive business model based on the successful Israeli Model.
*This article addresses general phenomena. The mention of a country/continent is used for illustration purposes only.
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