Evaluation of the Cooperation of Fruit and Vegetable Producers with Large-Format Retail Chains – Opportunities and Risks

Aleksandra Lubańska

Roczniki (Annals), 2020, vol. 2020, issue 01

Abstract: The article outlines the importance of large-format trade in Polish FMCG retail. The principal part of the article consists of opinions of fruit and vegetable producers on the positive and negative aspects of cooperation with large-format networks. Research was conducted with 24 producers supplying fruits and vegetables to the distribution centres of retail chains. The research shows that suppliers tend to note far more positive than negative aspects in cooperation with this distribution channel. The major advantages of cooperating with networks turned out to be the stability and certainty of sales of large batches of goods, the predictability of sales and an increase in the quality and safety of offered products. The most important obstacles to cooperating with these customers are: the dominant position of networks, imposing terms and conditions and prices of sales and over frequent promotions in networks. The study showed that the aggregate of incentives to cooperate with large-format retail chains was twice as high as the aggregate of disincentives. The article also makes an attempt to analyse the bargaining power of suppliers – fruit and vegetable producers – as well as the opportunities and risks related to the cooperation of farms with retail networks.

Keywords: Agribusiness; Agricultural and Food Policy (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ags:paaero:308172

DOI: 10.22004/ag.econ.308172

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