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Abstract
Sweet potato is by far the most important staple food in Papua New Guinea. While
much is consumed as a subsistence crop, it is also an important income earner for
many small holder farmers in the Highlands of PNG. Of the Highlands sweet potato
sold, about 90 percent is traded informally on open markets, locally or in coastal
urban markets. Data from a consumer survey, from an informant interview of
highlands suppliers and from consumer and supplier observations at the Lae market
(the largest coastal urban market for sweet potato) was used to explore the extent to
which Highland sweet potato in the coastal urban market of Lae, may be considered a
differentiated product. As a staple food being sold on informal markets one may
think it is best represented as an undifferentiated commodity. On the other hand,
there are many different varieties as well as different offerings (e.g. heap sizes,
washed/unwashed and Highland/Lowland) which suggest some product
differentiation characteristics. Results suggest that consumer preferences in the Lae
market are sophisticated and preferences are highly differentiated. It was also found
that Highland suppliers do have some appreciation of the consumer preferences in the
Lae market. However, it is also apparent that suppliers do not know how to
differentiate their product to effectively meet demand and hence they are not very
customer-responsive. The implications are that there is considerable potential to
improve marketing strategy and management to take advantage of sophisticated
consumer preferences.