Most consumer markets usually follow a stable growth trend, which in most cases is disturbed by the cycles to which supply is exposed, for two fundamental reasons: on the one hand, the weather, and on the other hand, the high yields obtained during certain periods.
The weather tends to improve or reduce yields and in some cases therefore affects the price of producers negatively, when it is not adverse, but on the other hand, if it is adverse, it reduces harvests and therefore through lack of availability raises prices, which attracts the interest of investors and farmers trying to obtain these yields, directing their agricultural activity to the production of these products to the detriment of others.
This attraction of new farmers to activities hitherto unknown to them, or the increase of resources of current farmers, trying to produce in greater quantities leads to cycles of oversupply, and at such times, the ideal is to immobilize the product, if it is not perishable, redirect production to other destinations that balance prices, allocate more resources to promotion, highlight your differentiating characteristics, etc.
And sometimes the temptation arises to compete, as a price increase strategy, with similar products of the same market, in order to cannibalize their market share by improving our own, to the detriment of the other category.
This strategy, besides being inadequate, and could be used by the traditional olive grove against the modern one, high oleic sunflower against the linoleic, American almond instead of Spanish, etc.. The only thing they achieve is to make the current customer doubt, who far from opting for one category or another, stops consuming the product, due to the doubts raised, and therefore aggravates the situation, therefore, this alternative is not only the least appropriate, but also the one that will generate the most perverse and devastating effects in a sector, as this user will not be easily recoverable in the next change of cycle, this strategy turns users into structural non-customers, almost impossible to recover in the future.