The Distribution of Agricultural Products: Fruit and Vegetables Market in Osijek

In the agricultural products wholesale market a wholesaler typically acts as an intermediary between producers and retailers in a distribution system. This is particularly evident for small individual producers who do not have a direct access to retail chains. In doing so, the wholesaler provides an intermediary role, but at the same time this also increases considerably the price of agricultural products. Due to the lack of linkages between agricultural producers and the inability to access directly to end buyers, producers are in an unfavourable position by comparison with the wholesaler. Small producers often have to accept the offered price and payment terms required by the wholesaler. Such unequal conditions result in the decreasing number of domestic agricultural producers and the difficult economic situation they are facing. Although fruit and vegetables (F&V) do not belong to primary exchange items, by applying quality standards for F&V production and e-business it is possible to distribute agricultural products from producers to retailers or end buyers in a quicker, easier and safer way. The paper deals with the experiences of the F&V market operating in Osijek. By including a large number of agricultural producers and buyers in market business it is possible to achieve significant financial effects, producers’ security, as well as security with respect to price and quality for the buyer of agricultural products.