IDEAS home Printed from https://ideas.repec.org/a/ags/gjagec/134889.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/134889/files/4_Vertical.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.134889?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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).
    3. 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.
    4. 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.
    5. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:lic:licosd:37616 is not listed on IDEAS
    2. Johan Swinnen, 2016. "Value Chain Innovations for Technology Transfer in Developing and Emerging Economies: Concept, Typology and Policy Implications," Working Papers id:10694, eSocialSciences.
    3. Granoszewski, Karol & Spiller, Achim, 2013. "Langfristige Rohstoffsicherung in der Supply Chain Biogas: Status Quo und Potenziale vertraglicher Zusammenarbeit," Department of Agricultural and Rural Development (DARE) Discussion Papers 260820, Georg-August-Universitaet Goettingen, Department of Agricultural Economics and Rural Development (DARE).
    4. repec:lic:licosd:23309 is not listed on IDEAS
    5. Johan F.M. Swinnen & Anneleen Vandeplas, 2010. "Market power and rents in global supply chains," Agricultural Economics, International Association of Agricultural Economists, vol. 41(s1), pages 109-120, November.
    6. Gagalyuk, Taras, 2012. "Goal achievement in supply chain networks: A study of the Ukrainian agri-food business," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 64, number 64.
    7. Kuijpers, Rob, 2020. "Integrated Value Chain Development: Evidence from Bangladesh," Food Policy, Elsevier, vol. 97(C).
    8. Xhoxhi, Orjon & Imami, Drini & Hanf, Jon & Gjokaj, Ekrem, 2022. "Too much power or no power: when does intermediary's power result into better wine and happier farmers?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(5), December.
    9. 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.
    10. Hanf, Jon H. & Török, Timea, 2009. "Are Co-operatives a Way to Integrate Small Farmers in Supply Chain Networks? Preliminary Thoughts on Hungary," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 37(1), pages 1-12.
    11. Saule Burkitbayeva & Emma Janssen & Johan Swinnen, 2020. "Technology Adoption, Vertical Coordination in Value Chains, and FDI in Developing Countries: Panel Evidence from the Dairy Sector in India (Punjab)," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(2), pages 433-479, September.
    12. Buchenrieder, Gertrud & Hanf, Jon Henrich & Pieniadz, Agata, 2009. "20 years of transition in the agri-food sector," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 58(07), pages 1-9, October.
    13. Hanf, Jon & Gagalyuk, Taras, 2009. "Supply chain quality and its managerial challenges: Insights from Ukrainian agri-food business," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 14(4), pages 332-356.
    14. Theuvsen, Ludwig & Franz, Annabell, 2007. "The Role and Success Factors of Livestock Trading Cooperatives: Lessons from German Pork Production," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 10(3), pages 1-23.
    15. Jan Falkowski & Aleksandra Chlebicka, 2018. "Fruit and vegetables producer organisations – some insights on their functioning based on data from Poland," JRC Research Reports JRC108869, Joint Research Centre.
    16. Swinnen, Johan & Kuijpers, Rob, 2019. "Value chain innovations for technology transfer in developing and emerging economies: Conceptual issues, typology, and policy implications," Food Policy, Elsevier, vol. 83(C), pages 298-309.
    17. Minten, Bart & Tamru, Seneshaw & Engida, Ermias & Kuma, Tadesse, 2013. "Ethiopia’s value chains on the move: The case of teff:," ESSP working papers 52, International Food Policy Research Institute (IFPRI).
    18. DRIES, Liesbeth, 2015. "The Determinants Of Resource-Providing Contracts: Case-Study Of The Polish Dairy Sector," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 18(1), pages 1-10, March.

    More about this item

    Keywords

    Agribusiness; Industrial Organization;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:gjagec:134889. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iahubde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.