Sale by small fruit and vegetable growers to large retail chains

Seres, Antal – Szabó, Márton

Keywords: concentration, large retail chains, supply, small farmers, fruit and vegetables

The opportunities of small growers as direct suppliers to multinational retail chains are limited to special niche products and gaps left open by large producers. With the exception of these products, small farmers cannot viably supply products to these buyers, as their offer is fragmented, preventing most of them from becoming a supplier.
Sooner or later, focus on efficiency will cause Hungarian retails chains to also consolidate their purchasing operations. This will cut back on the opportunities for small farmers to supply them directly with their goods, even though there are significantly more such opportunities available to them at the present time.
The policies followed by large retail chains include requirements which small farmers cannot meet, except for niche markets. They should therefore set up producer groups or join existing larger suppliers or producer groups.
The greatest obstacle to innovation is the reluctance to learn. Small producers are cumbersome and unwilling to initiate changes. To increase their participation as a supplier, they need to review their attitude and approach, and get ready to embrace change and new information.

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