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Conference paper2008Peer reviewed

Experiences of Quality in the Horticultural Value Chain - The Case of Sweden

Ekelund, L.; Fernqvist, F.; Furemar, S.

Abstract

A few vertically integrated retail chains, with continuously fewer and bigger units dominate the European food marketing system. This paper deals with the concept quality as defined in researcher models and as defined by market actors in the value chain. Quality can be seen as the reaching of certain defined levels, but value for money includes price, origin, ethical, ethical values, taste/flavour/texture, healthiness and convenience. In a number of case studies at different levels of the chain the actors have expressed and ranked their experiences of quality. Data arrive from interviews with consumers, retailers, wholesalers and primary producers in the Swedish market. Long distances trade calls for quality standards. Supermarkets pass on responsibility and costs of quality control to their suppliers and set the rules through detailed quality schemes. In a quantitative study of 100 carrot buyers in supermarkets the packaging, or the lack of packaging, was the most important factor in choice of product and Swedish origin was the most important prerequisite. In a conjoint study origin was considered more important than the concept organic. Although labels stand for different criteria, Swedish and organic foods gave similar associations. Retailers in a study of trade in apples and tomatoes ranked the importance of different purchasing criteria so that quality and price came first followed by demand, quantities and product origin on a joint second place. Observations in supermarkets in the dominating production district show that the fruit and vegetable department is not profiled according to product origin, but rather promotes the private labels of the chain. Wholesalers in the study of apples and tomatoes explained that high quality is defined by the buyers’ wants and not by them. In their ranking of the importance of different purchasing criteria quality came second after demand, and followed by quantity and price, which differs from the views of the retailers. In another study the wholesalers expressed an interest in organic and fair trade fruit, but were reluctant towards local or regional profiling. When it comes to the growers, those of the buyers pervade their own experiences of quality. We can identify a number of conflicts of interest in the chain. Consumers want quality products with a connection to freshness and origin. Retailers follow the marketing strategy of the chain and promote private label products in price competition. The wholesale levels acquire products on an over-supplied market and follow the demand from retailers. Producers meet their terms, or seek other paths to the market

Keywords

marketing; branding; supermarkets; fruit and vegetables

Published in

Acta Horticulturae
2008, number: 794, pages: 107-113
Title: Proceedings of Second International Symposium on Improving the Performance of Supply Chains in the Transitional Economies
ISBN: 978-90-6605-521-6
Publisher: International Society for Horticultural Science

Conference

Second International Symposium on Improving the Performance of Supply Chains in the Transitional Economies