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ISHS Acta Horticulturae 55: IV Symposium on Horticultural Economics

THE WHOLESALE MARKETING OF FRUIT AND VEGETABLES IN BRITAIN

Author:   L. Hinton
Abstract:
Recent developments in marketing policy for fruit and vegetables in Britain chiefly spring from the work of the Government Committee under Lord Runciman which reported in 1957. The Runciman report commended the trade on carrying out their difficult work efficiently. It acknowledged the trade in fruit and vegetable distribution and belied criticisms levied against the wholesale trade. One of these criticisms, which was based on a lack of knowledge of the real problems of the trade, was of the supposed high cost of distribution. These costs were accepted as moderate, and profit margins were found not to be excessive. It was agreed that the wholesale trade carried out well its main function, of matching demand and supply, despite irregularities in seasonal supplies and fluctuations within the season. The report concluded that the marketing system was not perfect but the Committee could offer no alternative system to take its place.

The Committee's recommendations for improving the existing system were mainly implemented by the Horticultural Improvement Schemes of the 1960's. These measures were part of the policy introduced in Britain to prepare the farm sector for the adoption of the Common Agricultural Policy later on. The main aim was to increase the competitiveness of British horticultural production and marketing. Government grants of one third, sometimes more, were given towards this end.

The Horticultural Marketing Council, a body recommended by Runciman, was established in 1960. This body worked on marketing and distribution problems, and on consumer information. It is unfortunate, particularly since new market developments were then (1960–3) getting under way, that the Council failed to get the support from the trade which would have made it permanent.

There were important policies of much more consequence to wholesale markets, as such, which were very successful. Grants totalling 20 millions were given to pay as such, which were very successful. Grants totalling 20 millions were given to pay for one third of the cost of reconstruction or improvement of wholesale markets of national importance. Considerable rebuilding and reconstruction of wholesale markets has already taken place, and, though the closing date (1974) was moved forward by two years, the grants are now fully taken up. Local authority

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