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ISHS Acta Horticulturae 699: I International Symposium on Improving the Performance of Supply Chains in the Transitional Economies

INTERACTION OF SUPPLY CHAIN PARTICIPANTS IN THE EASTERN CROATIA VEGETABLE CHAIN

Authors:   R. Lončarić, Z. Tolu¿ić, S. Tolić
Keywords:   market chain, producers, consumers, hypermarkets, coordination, producer's organizations
Abstract:
Like the other former socialistic countries from Central and Eastern Europe at the beginning of the 1990’s, Croatia began its transition towards a market economy. Croatian agriculture experienced numerous transitional problems (the loss of traditional markets, failures in privatizing state-owned land, poorly organized markets, technological and educational limitations, producer insolvency, an export-import deficit etc.). The aim of this paper is to explore the vegetable market chain in Eastern Croatia in order to identify and resolve problems. A survey was conducted among three market subjects – the producers, hypermarkets (as the place where vegetables are most frequently purchased) and consumers of vegetables. Vegetable producers are better educated and younger than the average Croatian farmer. Today, most are more satisfied with their position in the market chain in comparison to the time before hypermarkets. Since hypermarkets need a continuous supply of fresh vegetables, smaller farmers have had to cooperate and act as one producer. The biggest problem is the slow transfer of money and low prices during the season. The hypermarkets demand good quality vegetables, continuous delivery and a producer declaration. Hypermarkets in Croatia rely on domestic products except in the off-season. The consumers demand good quality vegetables, and a low price. Based on the survey results it can be concluded that the vegetable market is improving with the development of hypermarkets. Producers are certain that their products will be sold and paid for, while consumers are happy to be purchasing domestically grown vegetables. Hypermarkets are in a better position because they deal with grower cooperatives instead of individual producers.

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