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

THE PRODUCTION-MARKETING SYSTEMS WITHIN THE FRUIT AND VEGETABLE INDUSTRY.

Authors:   L. Muermans, J. Vertessen, J. Smeers
Abstract:
The importance of the reciprocal relationships between the various links in the chain of enterprises that produce, transform form and market the fruits and vegetables led us to an analysis of the economics of these products in terms of the trade channels they pass through. In other words we shall consider the various processes, from production to retail marketing, as elements within a functional whole.

In 1980 a survey was carried out in Belgium regarding the production marketing systems within the fruit and vegetable industry.

The Belgian growers sell their products for almost 48 % at the auctions, for 21 % to wholesale markets, for 20 % direct to wholesale dealers, for 8 % direct to the consumer and for 3 % to the industry.

From this it may be deduced that the position of the wholesale dealers in Belgium is very important. The number of wholesalers in fresh fruit and vegetables has nevertheless decreased between 1960 and 1980. In 1980, they are still numbering between 853 and 1000. The relatively large and increasing interest of the direct wholesale supplies to shopkeepers of voluntary chains and to branches of the multiple stores proves that the Belgian wholesale trade has definitely not become superfluous under the altered circumstances and can still claim its right of existence.

The wholesale market turned over in 1980 still 21 % of the total production. Formerly - at the time of a production shortage the function of the wholesale market was still very distinctively price forming. The criterion of the price forming has become much less important with the present situation of over production and has been assumed much more by the Belgian auction system which has been growing increasingly throughout the last decade.

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