Investigating the Appropriate Strategy to Enter the International Market of Organic Agricultural Products

Abstract

The increasing concern of consumers about the quality and safety of agricultural products all over the world has caused organic products to become one of the most popular options for healthy. The increasing trend and consumption of organic agricultural products has led to the increasing growth of the market of these products in the last two decades. Due to the importance of entering and gaining a share of this growing market, this study investigates the factors affecting the international organic products market entry and determines the appropriate strategy for entering it using structural equation modeling. The data of this study was obtained by collecting 90 questionnaires from producers of organic saffron, pistachio, and raisin products in the year 2021 with available sampling method in Khorasan Razavi province. The obtained results indicate that the variables of risk and motivation to enter the international market directly and the production and marketing ownership indirectly and through influencing the motivation to enter the international market, influence the international market entry strategy. Based on this, the appropriate strategy for entering the international market of organic products, indirect, cooperative and non-attendance strategies such as indirect export, contract production and joint investment was obtained. Therefore, it is suggested that the government should remove or reduce the risks caused by sanctions and obstacles to enter the market for the direct presence of organic product producers in international markets.

Keywords

• entry strategy
• motivation
• organic
• ownership
• risk