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Vertical coordination with growers in the supermarket fresh fruit and vegetables supply chain in Croatia

Author

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  • Gotz, Linde
  • Njavro, Mario
  • Hanf, Jon Henrich
  • Pieniadz, Agata

Abstract

This paper provides further evidence on vertical coordination as a means of overcoming supply disruptions and improving product quality. In contrast to previous studies, our findings suggest that the leading model of vertical coordination between fruit and vegetables growers and supermarkets in Croatia is restricted to loose, one-year contracts which mainly specify the terms of payment without providing farm assistance. Wholesalers more often provide farm assistance to fruit and vegetables growers. We expect that the wholesalers will drop out of the fresh fruit and vegetables (FFV) supermarket supply chain since supermarkets aim to streamline the procurement system by increasing local procurement directly from the farmers. Thus, the amount of farm assistance provided will further decrease. Therefore, for the rather small Croatian growers to integrate in the FFV supermarket supply chain, it is even more important that they organize to meet the supermarkets’ minimum quantity requirements and obtain access to a distribution facility. Diese Studie liefert weitere empirische Evidenz für vertikale Koordination als ein Instrument um sowohl die Produktmenge als auch die Produktqualität in einer Wertschöpfungskette zu verbessern. Unsere Ergebnisse zeigen dass sich die vertikale Koordination zwischen den Obst- und Gemüseproduzenten und den Supermarktketten in den meisten Fällen auf Ein-Jahres-Kontrakte beschränken, die im Wesentlichen die Zahlungsmodalitäten spezifizieren. Jedoch bieten Supermärkte im Unterschied zu Großhändlern den Erzeugern keine zusätzliche Unterstützung (farm assistance) an. Es ist zu erwarten, dass die Großhändler aus der Wertschöpfungskette verdrängt werden, da die Supermärkte Obst und Gemüse in zunehmendem Umfang direkt von den lokalen Erzeugern beschaffen. Somit wird sich das Angebot an farm assistance, das insbesondere für die kleineren Erzeuger wichtig ist, um sich in die Wertschöpfungskette zu integrieren, weiter verringern. Daher wird es für die kleinen kroatischen Erzeuger noch wichtiger, dass sie sich organisieren, um so die Mindestanforderungen der Supermärkte an die Liefermenge zu erfüllen und Zugang zu einem Auslieferungslager (distribution centre) zu bekommen.

Suggested Citation

  • Gotz, Linde & Njavro, Mario & Hanf, Jon Henrich & Pieniadz, Agata, 2009. "Vertical coordination with growers in the supermarket fresh fruit and vegetables supply chain in Croatia," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 58(08), pages 1-8, November.
  • Handle: RePEc:ags:gjagec:134889
    DOI: 10.22004/ag.econ.134889
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    References listed on IDEAS

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    1. repec:bla:devpol:v:22:y:2004:i::p:525-556 is not listed on IDEAS
    2. World Bank, 2005. "The Dynamics of Vertical Coordination in Agrifood Chains in Eastern Europe and Central Asia : Implications for Policy and World Bank Operations," World Bank Publications - Reports 8806, The World Bank Group.
    3. Hanf, Jon Henrich & Pieniadz, Agata, 2007. "Quality Management in Supply Chain Networks - The Case of Poland," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 10(3), pages 1-27.
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    Cited by:

    1. Schlecht, Stephanie & Steffen, Nina & Spiller, Achim, 2013. "Vertragsmanagement in Molkereien nach Auslaufen der Milchquotenregelung," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 62(01), pages 1-17, February.
    2. Jon H. Hanf, 2016. "Vertical Integration in the Azerbaijani Wine Business," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(2), pages 92-99, May.
    3. Schlecht, Stephanie & Steffen, Nina & Spiller, Achim, 2013. "Vertragsmanagement in Molkereien nach Auslaufen der Milchquotenregelung," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 62(1).
    4. Jon H. Hanf & Silva Atoyan & Linda Bitsch & Taras Gagalyuk, 2019. "Supply chain networks in the Armenian agribusiness: Setting a benchmark," Economia agro-alimentare, FrancoAngeli Editore, vol. 21(2), pages 359-378.
    5. Njavro, Mario & Sopov, Monika Blomne & Alić, Antonija, 2014. "Soft Fruit Sector in Croatia- Agribusiness Management Video Supported Case Study," 2014 International European Forum, February 17-21, 2014, Innsbruck-Igls, Austria 199402, International European Forum on System Dynamics and Innovation in Food Networks.

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