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ISHS Acta Horticulturae 135: VII Symposium on Horticultural Economics, XXI IHC

THE ADVANTAGES OF MARKET PROXIMITY TO HORTICULTURAL PRODUCTION

Author:   L. Ekelund
Abstract:
Competition is increasing between exporting growers in remote regions and local or domestic growers. Competition takes place both on an international and on a national level:

DOMESTIC ----- IMPORTS

LOCAL ----- LONG-DISTANCE

Competitive advantages of market proximity can be devided in advantages due to cost, due to quality and due to image. Those three aspects are discussed below.

The strengthening of competition will have consequences to horticultural production both on a political level and on a marketing level. Politically the local/domestic system with small scale production will become more important in regional develogpemt while the remote, exporting system in becoming a factor in developing countries. In marketing the local/domestic system can use the advantages of market proximity while the exporting system will concentrate on economies of scale. The combat between the systems will show where advantages and disadvantages are the greatest.

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