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Kwame Nkrumah University of
Science & Technology, Kumasi, Ghana
Course Code: ABM 354
Course Title: Agricultural Produce Export Management
Venue: NCB -TF

Days: Mondays
Time: 5 – 7 pm
Dr. Amos Mensah
Department of Agricultural Economics, Agribusiness and Extension. Faculty of Agriculture. CANR

7/25/2022 1
www.knust.edu.gh
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Course Overview
Section 3: Business Organisation and Product
Section 1: Introduction Potential
➢1.0 Ghana Export Sector 3.1 Setting up of an export firm –
➢Export Promotion Council ➢ Decistion to Export
➢Traditional and Non-Traditonal 3.2 Registration procedure - Documents
Agricultural Exports) 3.3 what to do before commencing
1.1 International Trade Environment 3.4 Registration with GEPC
1.2 Importance of international trade 3.5 Export permit / Prohibition list
1.3 Challenges in international trade 3.6 Assessing export potential
➢Trade barriers 3.7 Developing an Export Plan
Section 2: Management Section 4: Food Quality and Safety Issues
2.0 Export Mangement 4.0 Quality Standards and Regulation
2.1 The main features of export management 4.1 Regulatory Considerations - Intellectual
2.2 Functions of an Export Manager Property Rights (IPRs)
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Course objective: The overall objective of the course is to

introduce students to the basic knowledge and understanding of
concepts that are important for agricultural produce export.
• The Prospects & the Challenges in the Ghanaian Export
Sector will be highlighted.
• The International Export Environment (Rules, Regulations,

Trade barriers, Opportunities & Challenges) will be
discussed.
• The main features of export management including the

principles of assessing the export potential of the firm and
promotional strategies for export of agricultural produce
will be discussed.
7/25/2022 Department of Agricultural Economics, Agribusiness and Extension. Faculty of Agriculture. CANR 4
Learning Outcomes: At the end of this course, students should be

able to:
• identify the prospects/opportunities and the challenges in the
Ghanaian agricultural produce export sector
• understand the Importance of Exports to the Economy
• understand the requirement of the international market
• understand the Specific Roles and Responsibilities of an Export
Manager
• apply the concepts of export management in real export
business situations
• assess the export potential of their businesses
• develop an export plan and promotional strategies for export
of agricultural produce
• understand the registration procedures with GEPC
Reference
1. Agribusiness: Principles of Management (David D.
Van Fleet, Ella W. Van Fleet, and George J. Seperich)
2. Agribusiness Management, 4th Ed. (Freddie Bernard,
Jay Akridge, Frank Dooley and John Foltz)
3. Agricultural Marketing and Price Analysis (F. Bailey
Norwood and Jayson L. Lusk)
4. The handbook of international trade and finance :
the complete guide to risk management, bonds and
guarantees, credit insurance and trade finance /
Anders Grath.
Lecture Setup
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Course Evaluation
➢Mid-Semester Exams (20%)
➢Class Presentation & Semester Report (20)
➢Final Examination (60%)
➢Total = 100%
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Class Presentation & Semester
Report
Group Work
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Instructions
➢Class captain will divide the class to form a
working group
(10 people max in a group)
➢This group will be fixed (maintained)

throughout the semester
➢All group members are expected to participate

fully in all group activities
(excuses will not be tolerated)
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Class Presentation - Interview of Agribusiness Firms
➢Hint: Thematic Areas for questions
➢Background of the firm – how it all started
➢What motivated the person(s) to start the agribusiness firm
➢Challenges of operating the firms (past & current)
➢Measures being used to overcome or deal with the challenges
➢What assistance the firm will need to help grow/expand the
Agribusiness firm
➢Export Related Questions

➢Are you currenting exporting some of your products?
➢If yes to which countries (why these countries & the
Challenges involved)
➢If No, why?
➢What assistance do you think you will need to help you start
exporting? www.knust.edu.gh
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Semester Report – Develop an Export Business Plan
➢ Hint: Thematic Areas for the presentation
➢ Business Overview - Profiling the Business
• background informtion
• Company Objectives
• Services/products offered
SWOT Analysis
• Competitive Advantage
• Management Team
➢ Conduct an Industry Analysis
• marketing Strategies
• Revenue Streams & projections
• Strategic Partnerships and Alliances
➢ Benefits of services/products to consumers
• Identify Products with Export Potential
• List the Benefits to Consumers & Business Partners
➢ Market Analysis & Trends
• Target Customers
• Market Characteristics & Size
• Revenue Potential
➢ Competitors (domestic & foreign)
• Identify Foreign Markets to Pursue 12
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Introduction
➢With the advent of increasing access to information
technology and internet, a fundamental shift is occurring in
the world economy (How and Why?).
➢The world is getting closer in terms of cross border trade

and investment, culture and business systems and toward a
world in which national economies are merging into one
huge interdependent global economic system.
➢Globalization is affecting firms that previously operated in

a nice, easy, protected national market. It also illustrates the
increasing importance of thinking globally.
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Introduction - Globalization
➢ Globalization is the process
by which businesses and
other organizations operate
on an international scale.
➢ It includes the movements

and exchanges (of human
beings, goods, and services,
capital, technologies or
cultural practices) all over
the planet.
➢ One of the effects

of globalization is that it
promotes and increases
interactions between www.knust.edu.gh
different regions and
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populations around the globe
Introduction - Globalization
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Introduction
➢The global market scenario has undergone a
drastic change over the years.
➢The export sector has opened up new avenues for

enhancing national/firm/individual prosperity.
➢Export and import has become a vital process in

the success of many business today.
➢The global market has opened up numerous job

opportunities in the export-import management
sector. 16
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Introduction
➢Today, it’s easier than ever for a company (regardless of size)
to sell goods and services anywhere across the globe.
➢However the world we live is not perfect. It is still

characterized by considerable amount of uncertainty regarding
the demand, market price, quality and availability of goods
and services
➢There are still high transaction costs for purchasing or selling

goods across the globe
➢Hence the need for a good export management & strategy to

ensure the success of your Agribusiness firm in international
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trade.
Balance of Trade
Exports
Imports
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Introduction – Balance of Trade
➢ Balance of Trade (BoT) is the difference between the value
of a country’s Exports and Imports (i.e. BoT = Value of a Country's
Exports – Country's Imports)
➢ Example: if Ghana imported $1.8 billion in 2020, but

exported $1.2 billion to other countries, then Ghana had a
trade balance of -$600 million, or a $600 million trade
deficit.
Exports & Imports plays a

pivotal role in the growth
of the Ghanaian economy.
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Ghana’s export, percent of GDP
Ghana’s import, percent of GDP
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Introduction
➢ A key factor hindering export competitiveness has been the
high transaction cost involved in exports (Transactions occur
whenever a good or service is transferred from a provider to a
user)
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Types of transaction cost Source/origin of costs Tangible forms of transaction costs
Lack of knowledge about Personal/personnel time. Travel expenses

opportunities (e.g. products, prices, Communication costs
Search costs
demand, supply, trading rights,
market outlets)
Uncertainty about the reliability of Consulting service fees. Advertising/promotion

potential suppliers/buyers. Uncertainty costs
Screening costs
about the actual quality of goods
/services offered
Conflicting objectives and interests of Costs of credit rating checks

transacting parties. Uncertainty about Licensing fees. Insurance premiums
Bargaining costs willingness of others to trade on certain
terms. Uncertainty over transactor
rights and obligations
Legal, extra-legal or physical Handling/storage costs transport costs bribery and

Transfer costs constraints on the movement corruption expenses
/transfer of goods
Uncertainty about transactor Auditing fees product inspection charges

compliance with specified terms. Investments in measurement devices
Monitoring costs
Uncertainty about possible changes in
the quality of goods and services
Uncertainty about the level of damages Arbitration, legal, court fees

/injury to a transacting party arising Costs to bring social pressures
from contractual non-compliance.
Enforcement costs Problems in exacting penalties through
bilateral arrangements or through use 22
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of third parties
Introduction
➢Transaction cost related to export trade involves:
➢Regulatory requirements, procedures and
compliance measures
➢Infrastructure-related cost (including transport

cost to bring product to the ports)
➢Time and money spent in ports & border

procedures
➢International transportation costs and

communication costs 25/07/2022 23
Transaction Cost
▪Transaction Cost can be Internal or External to an
organization
▪Transaction costs depend on how the transaction is
organized (i.e. the governance structure of the
organization and the transaction)
▪Internal - Within an organization, costs include managing

and monitoring personnel and procuring inputs
▪External - When buying from an external provider, costs

can include source selection, contract management, and
performance monitoring
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Characteristics of Transactions that can Affect Transaction Costs
➢Site or location specificity — an export organisation can locate

its facilities next to others (commercial/industrial area) to
economize on inventories and or transportation costs
➢ Physical asset specificity — investments are made in specialized

equipment or tooling designed for a particular customer/operation
- efficient investments that reduce the cost of production
➢Human capital specificity — one or both of the parties develop

skills or knowledge specific to the buyer-seller relationship
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Characteristics of Transactions that can Affect Transaction
Costs
➢Dedicated capacity — capacity is created to serve a
customer who is large relative to market size so that it would
be difficult for that customer to switch (i.e. to find alternative
suppliers)
➢Brand name capital—the parties must maintain the

reputation of a shared brand name; for example, in franchise
relationships, the reputation of the franchise depends on the
behavior of the individual franchisees
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Demystifying the Export Market
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Understandind the requirement of the international
market - EU
➢What are the important lessons from these short videos?
➢When you look at the international market, you are

looking at international standards
➢No exception for any country in terms of standards

(quality, quantity and safety issues)
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Video - Understandind the requirement of the
international market - EU
➢Market requirements (continous supply and technical
excellence) –
➢Being able to assure the market that you will be able to

supply the same high quality products at all time – is very
important
➢Being able to adapt to the increasing scale of volume

requirements (regular supply - quality & volume) – is very
important
➢You will need an integral quality & quantity management
system in place
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What are the important lessons you learn from this
short videos?
➢Measures to reduce product perishability
➢(proper packaging, storage, transportation etc.)
➢Close working relationship between exporters & importers

➢(interms of compliance with standards and regulations)
➢Understand the 3 goldern rules for entering the international

markets –
1. Must understand the market and how the market operate –who
are the key contacts to deal with
2. Technical expertise to comply with standards (eurogap, global
gap etc)
3. You got to be very good at what you are exporting & long term
perspective of what you want to achieve
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What are the important lessons you learn from this
short videos?
➢Infrastructure Requirements
➢Innovation in packaging & cold chain management to
enhance shelf life & reducing perishability
➢Government – Private Sector Collaboration

➢Technical, policy and financial support
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Agricultural Produce Export
Management
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Why the Need to Understand Export
Management?
• When one wants to start a new business in the
field of the export sector
– (the desire to expand the distribution of one’s own or
company’s products in other countries)
• Person who wants to take up a carrier in the

export-import sector
– When one wishes to establish a presence of business
(goods and services) in the global market
– It is essential for running the export-import business
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Why the Need to Understand Export
Management?
• It helps in gaining knowledge about the numerous
aspects involved in the export-import business
– To train and enhance the skills of other employees involved
in the export and import business
• To understand issues related to export & import in

ways such as shipping arrangement, international
pricing, packaging, tax, marketing, and so on
– To develop effective strategies for increasing the clients,
business, and profit in the global market
– To train and enhance the skills of the co-workers involved in
the export business
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Agricultural Produce & Export Mgt
▪ Agricultural Produce Export is the outflow (sale) of
agricultural goods and services from Ghana and its sale to
another.
➢Export Management is the application of the managerial

process to the functional area of exports
➢It is a form of management that is required to bring

about coordination and integration of all those involved in
an export business
➢It is thus, concerned with securing export orders and

achieving their successful completion in time as per the
requirement specified by the foreign buyers www.knust.edu.gh
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Export Manager
• Export-Import managers serve as intermediaries
between foreign buyers and domestic sellers
• Export managers find buyers internationally for

domestic product manufacturers
– Export managers plan and coordinate the international
shipment of goods
• During the course of the day, they may negotiate with

a variety of people, such as shippers, agents, and
vendors, and
– are expected to have excellent customer service skills in
dealing with customers
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Export Manager
• Export managers are also often responsible for
personnel management, which often includes the
hiring, training, and supervision of staff
• In their accounting function, export managers may

keep track of invoices and prepare reports to
expedite the billing process
• Export managers have to ensure that shipments

are in compliance with the laws and regulations
governing the export industry
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Export Manager
• The export manager Plans and implement export
strategy and activities consistent with the overall aims
and requirements of the organization
• They analyze foreign markets and represent the

company in foreign exhibitions
• Formulate export business action plans.
• Monitor & control running export budgets
• Handle all Customer Complains, Suggestions &

Correspondence in a timely fashion
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Some Specific Roles and
Responsibilities of an Export -
Import Manager
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Some Specific Roles and Responsibilities of an Export -
Import Manager
Compliance: It is the responsibility of the Export

Manager to make sure that all the export/import
procedures are carried out in compliance with the laws
of their own country and the foreign country involved.
• He/she is supposed to have a thorough knowledge of

Customs and Border Protection rules.
• He/she must ensure that Export Administration

Regulations are followed to avoid Shipment delays
25/07/2022 and costly penalties. 40
Import Manager
Personnel Issues: An Import Manager also handles

hiring, job training, and work orientation of the
company’s employees.
• He/she is also responsible for the issues related to

the efficiency, accuracy, and productivity of the
workers.
• Evaluation of job performance and job promotion

recommendations are also handled by the Import-
25/07/2022
Export Manager. 41
Import Manager
Shipping Arrangements: All procedures such as

arrangements for freight shipments, cargo
movement, and communication for delays are
overseen by the Export Manager.
• He/she is responsible for finding faster shipping

routes and lower-cost carriers as well as
developing contingency plans to facilitate an
expedited shipment.
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Import Manager
Relationships: It is the role of an Export Manager to build good
a healthy working relationship with government agency
representatives, clients as well as employees.
• His/her responsibility is to hold regular meetings with

potential clients, customs brokers, shipping carriers and
logistics companies.
• Also, the Export Manager participates in the state customs

meetings as a representative of the company.
• Thus, in the context of globalization, a competent Export

Manager in a company greatly contributes to the
development of its trade relations across international
25/07/2022 borders. 43
EXPORT MANAGEMENT
Concepts
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Management
➢Management is a term commonly used in every
business activity
➢It means planning, organizing, directing,

controlling, and coordinating the specific
activity so as to achieve its objective
➢Such activity may be related to the purchase

of inputs, the production process, and
marketing (export market)
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Export management
➢Export Management is the application of all the
managerial processes to the functional area of exports
➢(basically: planning, organizing, coordinating, and
controlling all activities relating the o export of goods
and services to other counties)
➢It is a form of management that is required to

bring about coordination and integration of all those
involved in an export business
➢It is thus, concerned with securing export orders

and achieving their successful completion in time as
per the requirement specified by the foreign buyers.
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How to get export order from overseas buyers
▪ Beginner of any export firm focuses on the strategies to
get export orders to sell their product.
▪ How to obtain export orders?
▪ I give below some of the tips on obtaining export
business order.
➢ Digital world (utilization of internet service)

➢ Effective communication
➢ You can send samples
➢ Attend Trade fair
➢ Export promotion agencies
➢ Commodity Board
➢ Government Embassies
➢ Personal meet
➢ Appointing an Agent
➢ Through contacts of friends and relatives
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Export management
An efficient export manager conducts the export
activity of the firm in an orderly, efficient and
profitable manner.
➢Since the heart of each business is marketing,
export management can also be termed export
marketing management
➢The main objectives of export management:
1. secure export order and
2. to ensure timely shipment of goods as per
prescribed norms of quality and other
specifications including terms and conditions
agreed to between the export and the www.knust.edu.gh
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importer. 48
Export management
Export business management is more difficult and
complicated as compared to domestic business
management due to several factors such as:
➢ competition (both domestic and foreign),
➢varied regulations of different countries,
➢Language barriers, etc.
➢Export management requires a systematic

approach for ensuring a comprehensive
understanding of the oversea marketing structure
➢and using this information tactfully forwww.knust.edu.gh
7/25/2022 large-scale exporting (expansion of the firm) 49

Export Manager - Job Description
The job of an agricultural produce export manager
is very difficult to describe precisely
➢ The job is fragmented and constantly

changing (even as the day progress)
➢ Often dealing with crises and unforeseen

events & interruptions (break down of plants,
transportation delays, cancelation of orders,
dealing with difficult clients, etc.)
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Export Manager - Job Description
The job description of an agricultural producer export
manager also depends on the type of Agricultural
sector they are in
➢ Vegetable crops,
➢ Cereals
➢ cash crops
➢ Livestock & poultry products
➢ Fish & aquatic products
➢ Forest, timber & non-timber products
and
➢ Whether they are established export firms or www.knust.edu.gh
7/25/2022 New entries (start-ups) 51

Export management
An efficient export manager aims to develop and
expand the international market-share of the firm
➢ This involves strategic planning,

organizing, directing, and controlling
export marketing activities
➢To develop and expand the international market

share of the firm, the export manager will have to:
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To expand the international market-share of the firm
➢The export manager have:

➢To decide export objectives of the organization
and prepare comprehensive short-term and
long-term plans and programs to achieve such
objectives
➢To conduct marketing research so that export

efforts will be concentrated on certain
commodities and on foreign markets which are
highly promising. www.knust.edu.gh
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The export manager have:
➢To introduce innovative product
development plans to produce quality goods
that meet the specific needs of foreign
markets/buyers.
➢To execute long-term export promotion
programmes for the products with promising
overseas demand.
➢To fix up the prices of exportable items with
proper care
➢To find out new designs for packaging of www.knust.edu.gh
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export items 54
The export manager have:
➢To look after the advertising and publicity abroad
and to maintain effective communication with
prospective buyers
➢To look after prompt execution of export

orders so as to avoid inconvenience to
foreign buyers.
➢To analyze the export policy of the

government and the current export regulations www.knust.edu.gh
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and procedures 55
Importance of Exports to the Economy
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Importance of Exports to the
Economy
▪ Exports play an important role in the
Ghanaian economy, influencing the
level of economic growth, employment,
and the balance of payments
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Export of Agricultural Produce
➢Export is important for all countries, particularly
developing countries (e.g. Ghana), as it brings in vital
foreign exchange needed for the development and
payment of goods and services
➢The greater the inflow of export earnings, the

better the balance of payment position and
consequently the faster the rate of development
➢There are technological benefits that flow from

exporting that spread to other parts of the economy
(spillovers), so not only does the exporting industry www.knust.edu.gh
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benefit but also the rest of the economy. 58
Agriculture export accounts for almost a third of Ghana’s GDP
Drivers of GDP growth (Contribution to GDP growth rate)

▪ Job Creation Sectors (contribution to GDP - 2020):
Agriculture
DR. AMOS MENSAH (knust – Ghana) DR. AMOS MENSAH (Lecturer, KNUST – Ghana)
➢However International Trade Statisitic shows that, Ghana can still improve
its position in terms of trade
Top 10 Trade Partners 2019/20
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Top 10 Export & Import Goods 2019/20
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Ghana – Key Trade & Economic Facts
• .
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Ghana Trade Statistics
(Source: https://globaledge.msu.edu/countries/ghana/tradestats)
Trade Statistics 2016
Exporter Rank Ghana: Trade

TradeStatistics
Exporter Rank
Statistics
2016 2017
70 / 135 60 / 121
COMPARE EXPORTER RANK
Importer Rank Importer Rank
76 / 134 68 / 121
COMPARE IMPORTER RANK
Trade Balance Rank Trade Balance Rank
31 / 121
Trade Statistics 2019
52 / 134
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How to increase the level of exports
•Pursue a weaker Cedi (in a fixed exchange
rate – devaluation).
•A lower value of the Cedi makes exports

cheaper, but this boost to competitiveness
may prove temporary because of the
increase in inflation
•However, if you rely too much on the

depreciation mechanism alone to increase
export competitiveness, exporters may have
less incentive to cut costs and improve long-
7/25/2022 term productivity. 64
➢ Supply-side policies are government attempts
to increase productivity and increase efficiency
in the export sector.
➢ If successful, they will shift aggregate supply
(AS) to the right and enable higher economic
growth in the long-run
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➢ Supply-side policies to improve the
competitiveness of the export sector. The
Supply-side policies could include both
• interventionist supply-side policies (such as

cutting taxes, subsidies on inputs, and
lowering borrowing rates to foster increased
production) and
• market-oriented supply-side policies (e.g.

higher government spending on improving
transport infrastructure, education & skills
development, internet & communication,
etc.), aimed at improving productivity.
7/25/2022 66
• Private sector innovation: There is only so much the
government can do to promote private sector
productivity. Competitiveness depends more on
firms adopting new technologies and management
techniques that enhance productivity.
• Reduce tariff barriers: Lower tariff barriers can help

increase trade. However, if you reduce general tariff
barriers, some domestic industries may lose out
because they can no longer compete.
• Reduce non-tariff barriers: Modern trade theories

stress the importance of non-tariff barriers and
obstacles to trade. Removing these can help make
7/25/2022 trade more frictionless and improve exports. 67
Traditional and Non-Traditional
Export Products
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Traditional and Non-Traditional
Export Products
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➢ In Ghana, agricultural produce that can be exported are

classified as either Traditional or Non-Traditional Export
Products
➢70% of Ghana’s exports are still in the traditional sector, dominated by
cocoa beans, gold and timber (now oil)
➢However impressive growth has been witnessed in the non-

traditional export sector which has been increasing at rates
between 15%- 25% per annum
➢The Non-traditional Export (NTE) sector has become a
significant contributor to Ghana’s overall exports
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7/25/2022
➢The sector, on average, accounts for close to 25% of total 70
agricultural exports.
Export earnings from cashew nuts, shea nuts, and
medicinal plants and parts, grew by >16 percent
contributing to >15.74 percent of total NTE earnings
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7/25/2022 shea nuts 71

cashew seed and the cashew apple
Opportunity to expand the production & export of Non-
Traditional Export Products
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Opportunity to expand the production & export of Non-
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Commercial production of snails
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shea nuts & butter
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Cashew Nuts
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➢Traditional Export Products include:
➢Gold (minerals)
➢Cocoa Beans,
➢Timber Logs and Lumber
➢Electricity
❖All other products besides the above,

➢are classified as Non-Traditional exports
➢There are over 383 different non-traditional Export

products
➢For ease of reference, the products have been grouped
as Agricultural fresh products, Processed and Semi- www.knust.edu.gh
7/25/2022 Processed products, Handicrafts and Services. 78
Agricultural fresh products
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Processed and Semi-Processed products
Medicinal plants & spices
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Handicrafts
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Routes to the supermarket
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Non-Traditional Agricultural Export Products
➢Horticultural Products (flowers, fruits, etc.)
➢Vegetables (pepper, okra, bean, cucumber, etc)
➢Spices (Ginger, black pepper, etc. )
➢Nuts (cashew, shea, cola, tigernut, etc)
➢Rubber
➢Oil Seeds (oil palm, etc.)
➢Tubers (yam, cocoyam, etc.)
➢Fish & Seafood Products
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The concept of non-traditional crops
❖The concept of ‘non-traditional’ refers to: crops which are
‘new' or exotic to Ghana (i.e. not produced traditionally in
Ghana), or crops which have been traditionally produced for
local consumption, but are now being exported to foreign
markets in unique/distinctive (i.e. value addition) and in
large volumes.
❖In 1984, a Structural Adjustment Program (SAP) supported

by the World Bank and inspired by continued falls in world
cocoa price, led to the introduction of Ghana's Economic
Recovery Programme (ERP),
➢a prominent feature of which has been additional
support for NTEs.
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Economic Recovery Programme (ERP)
❖Strategic focus on increasing production and exports of
high-value agricultural products to both temperate and other
African countries.
❖Policies and institutional capacities (e.g. GEPC) were

established to support and facilitate the marketing and
export of these products by the private sector.
❖Some of Ghana's leading NTAE crops such as pineapples,

mango, kola nuts, and yams - have all seen dramatic
production increases, in response to the promotional efforts,
and in part a response to the decline of cocoa trade.
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➢Analysis of the NTAE business at the individual, village, and
national levels shows net advantage to the country in the
following:
➢Diversified economy both at the village and national level

➢Increased foreign exchange for the nation
➢Improved employment opportunities and income
➢Introduction of new technology and capacity building
➢Stimulation of private entrepreneurship
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Introduction
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❖From the government, individual and social perspectives,
NTAE is a profitable business, (i.e. total financial benefits
exceed total costs)
❖However, these benefits have not come without a price,

……… particularly in the form of environmental
degradations, and socio-economic disruptions
❖Generally speaking, the production of NTAE crops is

considered a mixed blessing in the communities where the
crops are actually cultivated perhaps due to the
environmental impact
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❖While there have been tangible improvements in
household incomes and the quality of socio-economic life,
there have also been considerable deteriorations in the
quality of the local environment
❖Active promotion of NTAEs, for example, has resulted in

increased levels of deforestation, destruction of delicate
ecosystems (swamps and mangroves) and soil degradation,
heightened levels of agro-chemicals in crops, soil and water,
and the erosion of local genetic resources and national
biodiversity
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Introduction
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❖The benefits of NTAEs has already been highlighted in many
studies
❖However, the continued realization of these benefits,

requires that an increased attention be given to the impacts
of NTAE production on the environment and human health
❖The challenge is to ensure that production is

environmentally, economically, and socially sustainable
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Export Marketing Strategies
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Marketing vs. Advertising
• Marketing is the systematic planning,
implementation, and control of business activities
to bring together buyers and sellers.
– Marketing encompasses a range of activities to sell a
product or service.
• Advertising is just one aspect of marketing strategy

– it is a paid, public, persuasive message by an identified
sponsor
– The purpose of advertising is promotion of a business's
products or services
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– The approach is unique to that product or service 102
➢ A solid marketing strategy will go a long way in helping you
reach clients in international markets
➢Cultural differences can mean that marketing strategies
can differ from those used domestically
➢ Long before you fill your first order - you'll need an export
marketing plan
➢While you are developing your marketing plan -
remember not to confuse marketing with advertising or
promotion
➢Marketing is a broad strategy
➢The other two are the tools your strategy will use to
reach your target audience
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➢ A good export marketing plan should answer the
following questions:
➢According to your market research, what are the
characteristics of your target market?
➢How do your competitors approach the market?
➢What is the best promotional strategy to use?
➢How should you modify your existing marketing materials,
or even your product?
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The Important 'P's of international marketing
• Product - what is your • Payment - how complex are
product and how must it international transactions?
be adapted to the market?
• Personnel - does your staff
• Price - what pricing have the necessary skills?
strategy will you use?
• Planning - have you planned
• Promotion - how will you your business, market,
make your customers account, and sales calls?
aware of your product?
• Paperwork - have you
• Place - how and where will completed all the required
you deliver or distribute documentation?
your product ?
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The Important 'P's of international marketing
• Practices - have you • Positioning - how will you
considered differences in be perceived in the
cultural and business market?
practices?
• Protection - have you
• Partnerships - have you assessed the risks and
selected a partner to taken steps to protect
create a stronger market your company and its
presence? intellectual property?
• Policies - what are your

current and planned
policies?
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Building your export marketing plan
➢ Because marketing is an ongoing activity, your marketing plan
is a work in progress that you will modify continuously
➢ As you develop it, consider the following questions:

➢ What is the nature of your industry?
➢ Who are your target customers? Where are they?
➢ What is your company's promotional strategy?
➢ What products do you plan to market?
➢ How will you price your products?
➢ Which segment of the market will you focus on?
➢ Does your marketing material accurately convey the

quality of your products and the professionalism of your
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company?
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➢ A good marketing plan is closely related to your business plan
and should contain the following:
➢ Executive summary - state the purpose of your marketing plan.

➢ provides an overview of your objectives and how the plan will be used
in your exporting strategy
➢ Goals - state your objectives in terms of market share, revenue

and profit expectations. Indicate the position you would like to
occupy in the target market and explain how you will go about
achieving it
➢Organizations usually summarises their goals and
objectives in mission and vision statements
➢Both of these serve different purposes for a company
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but are often confused with each other 109
Goals - mission and vision statements
➢While a mission statement describes what a
company wants to do now, a vision statement
outlines what a company wants to be in the future
➢The Mission Statement concentrates on the

present; it defines the customer(s), critical
processes and it informs you about the desired
level of performance
➢The Vision Statement focuses on the future; it is a

source of inspiration and motivation
➢Often it describes not just the future of the
organization but the future of the industry or society in
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which the organization hopes to effect change 110
➢ Product analysis - give a clear description of your export
product, its unique selling points and how marketable it might
be internationally
➢ Market analysis - describe your target market in terms of size

and trends. Include key economic, social, political and cultural
characteristics, a profile of your target customer, buying
patterns and factors influencing purchasing decisions.
➢ Competitive analysis - analyze the competitiveness of your

product. This will help you to position it effectively in your
target market, and to decide pricing and marketing strategies
➢ Promotional strategy - describe your promotional strategy by

including information on specific product pricing and mode of
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delivery 111
Promotional strategy
• Promotion involves disseminating information about a
product, product line, brand, or company
– A Promotion usually involves an immediate incentive

(e.g. Giving free products, coupons, etc.) for a buyer,
intermediate distributor or end consumer.
– Promotions are directly linked to immediate sales and

hence for small companies it may be easier to use
promotional methods than advertising methods.
• For example: A store may give 20% discount on its products

which may increase sales while the same shop may find it
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difficult to advertise this in various media houses 112
Promotional strategy
• Types of promotional strategies
➢Promotion is generally divided in two parts:
➢Above the line promotion: Promotion in the mass

media
➢Below the line promotion (All other promotion): Much

of this is intended to be subtle enough that the
consumer is unaware that promotion is taking place
➢E.g. sponsorship, product placement, endorsements,

sales promotion, personal selling, trade shows, in-store
offers, etc.
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Developing an Export Plan
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➢ Once you’ve decided to sell your products abroad,
➢ you’ll need to develop an export plan
➢ What is an export plan?

➢ An export plan is your guideline for the
development of your international business
➢ It consists of the:
➢ Identification of markets,
➢ Goals/objectives,
➢ Activities and proposed ways of
achieving objectives,
➢ required resources and
➢ expected results www.knust.edu.gh
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What is Involved in Developing an Export Plan?
Developing an export plan involves performing a variety
of tasks including
➢ conducting market research,
➢ creating a marketing plan,
➢ deciding on market entry and delivery
methods,
➢ planning day-to-day operations and potential
expansion activities,
➢ addressing the issues of export financing
and insurance
➢ and setting targets and timelines
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What’s the purposes of an export plan?
➢ To assemble facts, constraints, and goals
➢ To create an action statement that takes all of those
elements into account
➢ The plan should include
➢ specific objectives,
➢ sets forth time schedules for implementation,
➢ and marks milestones
Why are milestones important?
➢ It serve as a Monitoring & Evaluation tool
➢ To track implementation and outputs systematically
➢ To measure the effectiveness of the export plan so
that the degree of success can be measured
➢ It helps determine exactly when a plan is on track
and when changes may be needed
➢ and this can motivate personnel
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The first time an export plan is developed,
➢ it should be kept simple
➢ It need be only a few pages long because important
market data and implementation elements may
not yet be available
➢ The plan should be viewed as a flexible/dynamic
management tool, not as a static document
➢ However, as you learn more about exporting and your

company’s size and competitive increase,
➢ the export plan will become more detailed and
complete.
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What are the Benefits of Developing an Export Plan?
➢ Written plans display your strengths and weaknesses more
clearly
➢ Written plans are not overlooked or forgotten
➢ Written plans may be required in seeking financing to build

the export side of the business
➢ Written plans are easier to communicate to others
including new hires who come on board as your
business grows
➢ Written plans assign responsibilities,

➢ keep you on track,
➢ and provide ways to measure results
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➢ Written plans give you a clear understanding of specific
steps that need to be taken and help assure a
commitment to exporting over the longer term
➢ The plan represents a commitment to exporting
➢ With a written plan you’ll be less likely to ignore

inquiries
➢ or actual orders from foreign buyers
➢ Written plans allow for the articulation of unexamined

assumptions about your business
➢ that can lead to new insights and better plans and
results
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➢Written plans can help clarify
assumptions, answer questions, and dispel fears,
➢such as:
➢No one outside Ghana will buy my product
➢I can’t think of any foreign country market to
target
➢If I can’t think of another country to enter, why
bother with a written export plan?
➢Acquiring export expertise is too expensive
or time consuming
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Answering these questions can help you develop a good export
plan
➢Which products are selected for export development, and
what modifications, if any, must be made to adapt them for
overseas markets?
➢Which countries are targeted for sales development? In

each country, what are the basic customer profiles, and
what marketing and distribution channels should be used to
reach customers? Is an export license needed?
➢What special challenges pertain to each market (for example,

competition, cultural differences, and import and export
controls), and what strategy will be used to address them?
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Answering these questions can help you develop a good export
plan
➢How will your product’s export sales price be determined?
➢What specific operational steps must be taken and
when?
➢What will be the time frame for implementing each
element of the plan?
➢What personnel and company resources will be dedicated

to exporting?
➢What will be the cost in time and money for each
element?
➢How will results be evaluated and used to modify
the plan?
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Features of an Export Plan
➢Introduction:
➢Goals ➢Freight Forwarder
➢Financial Resources ➢Export Licenses
➢Non-Financial Resources ➢Health Certificates
➢Current Trends and ➢Language Laws
Practices ➢Intellectual Property
➢Production Capacity ➢Export Documents
➢Target Markets ➢Website Tactics
➢Risk ➢Action Plan
➢Credit Policies
➢Return Policies
➢Shipping
➢Pricing
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Sample Elements of an Export Plan
❖ Introduction: History and present situation of the firm, What
makes this company unique?
➢ A.M juice is a healthy organically produced pineapple juice
providing maximum taste, flavor and nutrition. It is a
healthier alternative to its conventionally produced juice.
➢ After several years of successful domestic sales,
followed by the creation of a network of domestic
distributors in all the 10 regions in Ghana, we are ready
to pursue international sales via an expanded web
presence, including direct sales to distributors in the EU
& China.
➢ Our location in Ghana, creates a tropical brand
value by associating the product with a clean
environment, and social consciousness
production practice.
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❖ Goals: State your export objectives, document your
motivation for exporting and include expected outcomes
➢ Use a third party e-commerce sites to increase company sales
by 15 percent in 2 years.
➢ Participate in EU organic fruit market outside Ghana where
97 percent of foreign buyers live.
➢ Improve product quality, marketing, and management
by learning from discerning customers in the new
markets where we will sell.
➢ Locate at least one distributor in two EU country
within the next 2 years of selling in the EU.
Add additional goals as appropriate

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❖ Financial Resources: Sources of funding, support and
budget allocation
➢ Annual capital budget of $35,000 will be needed to
➢ cover assistance finding distributors in the EU markets
➢ Sponsor participation in overseas trade shows/mission
➢ to ensure five-year minimum commitment to these export
channels
➢ to develop a decent website which we will further
internationalize our product
➢ Translation of marketing materials/labels
Add other resources as appropriate
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❖ Non-Financial Resources: Human resources improvement

(staff and management/knowledge and skills)
➢ Sponsor 5 staff members annually abroad to enhance
their technical competence
➢ One staff member will take courses on how to
enhance export.
➢ One staff member will research free and low-cost
government export assistance.
Add other resources as appropriate.
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❖ Current Trends and Practices:

➢ Revenues have grown 5% over the past 4 years
➢ and next year projection look very promising.
➢ Our product is sold
➢ via the Internet and
➢ through a network of domestic distributors.
➢ We have occasional sales request from individual
buyers (domestically and abroad);
➢ a few inquiries from potential distributors in
Australia.
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❖ Production Capacity:
➢ We have the capacity to increase production 30
percent without additional capital investment.
➢ Investigate contract production at a nearby
plant.
➢ Increase outgrower schemes 20% to meet
increasing input demand
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❖ Target Markets:
➢ Will pursue all leads generated from our website and e-
commerce platforms, and will also investigate Singapore as a
regional market for Southeast Asia
➢ Will look at the past 4 years for the effects of the recession and
at the current year for signs of trends
➢ Will look at U.S. and EU Free Trade Agreement countries for
advantages created by zero tariffs on importation of qualifying
goods
➢ Will look at shipments to other countries and the average
selling price to help determine where the most demand is and
whether our company is price competitive
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❖ Risk:
➢ Risk is mostly centered on non-payment of goods held up by
foreign customs, or goods lost or stolen.
➢ Our initial cash in advance policy help mitigate non-payment
risks, and insurance covers other kinds of losses.
➢ As we get closer to finding one or more distributors, we plan
to use the services of government export promotion
organizations to avoid customs issues.
➢ By better understanding shipping and documentation
processes, we will further minimize potential risk from
customs issues.
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❖ Credit Policies:
➢ Will require cash in advance via government assisted programs
➢ Will check with bank to make sure account is in good order
before shipping goods
➢ Will consider a third party investment to improve the financial
soundness of the firm
➢ Will consider and investigate providing terms for sales to
distributors
➢ Will inform buyer about policies related to paying duties and
taxes
❖ Return Policies:
➢ Will provide full refund or replacement for lost goods or
goods damaged in transit; website will reflect policy
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❖ Shipping:
➢ Assistant Export managers will handle shipping tasks
➢ and will ship within 24 hours of receiving order
➢ and verifying payment.
➢ We will primarily ship by air and will select one or more
express carriers;
➢ will also consider the low cost shipping offer by the Ghana
Postal Service as a option for shipments weighing less than
70 kg.
❖ Pricing:
➢ We will make it clear in our communications and on the
website that the customer is responsible for paying all
applicable duties, taxes, and shipping costs.
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Action Plan
Priority Objective Task Resources Schedule Evaluation
1 Revise export Review initial Export dept Over the Completion of

plan export plan staff to next 3 export plan
review plan weeks
2 website Improve Task in- Complete Evaluate early

.. company‘s house or website response of
.. website to meet contract improveme customers (sales
.. international web expert nt within improvement?)
.. standard 30 days
..
..
.. Establish Calculate landed Export Staff Complete Establish
10 pricing and costs and make time within 14 revenue
return policy revenue days benchmarks
projections
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Action Plan & Milestone
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Kwame Nkrumah University of

Science & Technology, Kumasi, Ghana

Course Code: ABM 354

Course Title: Agricultural Produce Export Management

Venue: NCB -TF

Dr. Amos Mensah

Department of Agricultural Economics, Agribusiness and Extension. Faculty of Agriculture. CANR

Course objective: The overall objective of the course is to

• The International Export Environment (Rules, Regulations,

• The main features of export management including the

Learning Outcomes: At the end of this course, students should be

➢Mid-Semester Exams (20%)

➢Class Presentation & Semester Report (20)

➢Final Examination (60%)

➢This group will be fixed (maintained)

➢All group members are expected to participate

➢Export Related Questions

➢The world is getting closer in terms of cross border trade

➢Globalization is affecting firms that previously operated in

➢ It includes the movements

➢ One of the effects

➢The export sector has opened up new avenues for

➢Export and import has become a vital process in

➢The global market has opened up numerous job

➢However the world we live is not perfect. It is still

➢There are still high transaction costs for purchasing or selling

➢Hence the need for a good export management & strategy to

➢ Example: if Ghana imported $1.8 billion in 2020, but

Exports & Imports plays a

Ghana’s import, percent of GDP

Lack of knowledge about Personal/personnel time. Travel expenses

Uncertainty about the reliability of Consulting service fees. Advertising/promotion

Conflicting objectives and interests of Costs of credit rating checks

Legal, extra-legal or physical Handling/storage costs transport costs bribery and

Uncertainty about transactor Auditing fees product inspection charges

Uncertainty about the level of damages Arbitration, legal, court fees

➢Infrastructure-related cost (including transport

➢Time and money spent in ports & border

➢International transportation costs and

▪Internal - Within an organization, costs include managing

▪External - When buying from an external provider, costs

➢Site or location specificity — an export organisation can locate

➢ Physical asset specificity — investments are made in specialized

➢Human capital specificity — one or both of the parties develop

➢Brand name capital—the parties must maintain the

➢What are the important lessons from these short videos?

➢When you look at the international market, you are

➢No exception for any country in terms of standards

➢Being able to assure the market that you will be able to

➢Being able to adapt to the increasing scale of volume

➢Close working relationship between exporters & importers

➢Understand the 3 goldern rules for entering the international

➢Government – Private Sector Collaboration

• Person who wants to take up a carrier in the

• To understand issues related to export & import in

➢Export Management is the application of the managerial

➢It is a form of management that is required to bring

➢It is thus, concerned with securing export orders and

• Export managers find buyers internationally for

• During the course of the day, they may negotiate with

• In their accounting function, export managers may

• Export managers have to ensure that shipments

• They analyze foreign markets and represent the

• Formulate export business action plans.