Quality Management in Supply Chain Networks - The Case of Poland

In this article we suggest that rising quality requirements are key factors for the redesign of food chains. We argue that the food supply proceeds through pyramidalhierarchical strategic networks coordinated by powerful focal firms. These firms choose a quality strategy and employ chain quality management concepts by exerting managerial discretion to achieve the super-ordinate network aims. We introduce and elaborate upon two types of chain quality management: strategic and operative. The theoretical findings have been tested using evidence from the Polish dairy market. Semi-structured interviews were conducted across the various hierarchical levels of the 19 largest Polish dairy cooperatives during the spring of 2006. The results show that the firms’ activities are generally aligned with current market opportunities for optimal enterprise performance. Thus, we determined that manufacturers of well-branded products create an advanced network structure and apply strategic quality management. Networks that have a focal company acting as an external customer of a processor use operative quality management. Some Polish dairies are still not embedded in any supply chain networks; no chain quality management concepts can be installed in these chains because they have no powerful focal firm.chain quality management, dairy cooperatives, network theory, Poland, Agribusiness, Agricultural and Food Policy, Demand and Price Analysis, Farm Management, International Development, Livestock Production/Industries, Production Economics,

Alternative marketing options for small-scale farmers in the wake of changing agri-food supply chains in South Africa

With South Africa’s urban population approaching 60%, supermarkets and fast food chains have become important players in the South African food system. These large players in the food sector have systematically modified their procurement practices especially with regard to fresh fruit and vegetables and are now circumventing spot markets in favour of sourcing via in-house sourcing companies who mainly procure from preferred supplier producers. This paper draws extensively from a global research programme which seeks to highlight the market changes that potentially contribute to continued exclusion of the small producers from mass consumer markets. This paper illustrates, through a series of case studies, how integration of small-scale farmers into the urban retail market can be facilitated and how the challenges posed by the changing food system could possibly be overcome. The case studies illustrate various initiatives through which small-scale farmers and agribusinesses can be integrated into mainstream agri-food systems and may be used as models for an innovative approach to include small-scale farmers while still maintaining profitable business operations. They highlight the need for a multi actor approach for the successful participation of smallholder farmers in order to allow them to join the supply chain at any point within the channel.Marketing, Agribusiness,

U.S. Fresh Fruit and Vegetable Marketing: Emerging Trade Practices, Trends, and Issues

In the past year, trade practices between fresh produce shippers and food retailers gained national attention. Shippers are concerned that recent retail consolidation has led to market power and the growing incidence of fees and services. Retailers argue that these new trade practices reflect their costs of doing business and the demands of consumers. Trade practices include fees such as volume discounts and slotting fees, as well as services like automatic inventory replenishment, special packaging, and requirements for third-party food safety certification. Trade practices also refer to the overall structure of a transaction-for example, long-term relationships or contracts versus daily sales with no continuing commitment. This study compares trade practices in 1999 with those prevalent in 1994, placing them in the broader context of the evolving shipper/retailer relationship. Most shippers and retailers reported that the incidence and magnitude of fees and services associated with transactions has increased over the last 5 years. Fees paid to retailers are usually around 1-2 percent of sales for most of the commodities we examined, but 1-8 percent for bagged salads. Information on the incidence and magnitude of these new practices is scarce. To augment information that is publicly available, we interviewed a limited number of shippers, retailers, and wholesalers about their firms and trade practices. We received a high level of voluntary cooperation from the interviewed firms.produce, fresh fruit and vegetables, fresh-cut produce, trade practices, fees and services, slotting fees, retail consolidation, produce shipper consolidation, Crop Production/Industries, Marketing,

Relocalising the food chain: the role of creative public procurement

The conventional food chain presents a challenge to sustainable development, containing hidden costs such as health bills, environmental damage and economic costs to the rural economy. This report argues for the development of local food chains, which would bring the 'multiple dividend' of healthier diets, local markets for local producers, lower food miles and better understanding between producers and consumers. Barriers to the growth of local food chains include EU procurement regulations and UK local government legislation that prohibit explicit 'buy local' policies, health auditing conventions which neglect the health gains of nutritious food; catering cultures that are biased to a few large firms; tendering procedures that are too complex for small suppliers; and lack of logistical and marketing capacity on the part of local producers. Schools and hospitals should be the focus for a concerted local food campaign in the UK. A local food action plan is required to reform the regulatory regime, balance demand and supply, and make it easier for consumers, especially parents and children, to buy nutritious local food, including organic food

Owners' perceptions of factors that constrain the survival and growth of small, medium and micro agribusinesses in KwaZulu-Natal, South Africa

Public and private sector institutions in KwaZulu-Natal (KZN), South Africa (SA) can identify policies and strategies to increase the survival and growth rates of small, medium and micro-enterprise (SMME) agribusinesses if they have more information about the factors that constrain business performance. The sustained growth of these SMMEs could, in turn, help to reduce poverty, income inequality and unemployment problems in the province. The owners of 44 agribusiness SMMEs in a stratified random sample of Ithala Development Finance Corporation clients in KZN were, therefore, surveyed during October 2003 and January 2004 to identify what factors they perceive constrain business survival and growth. The respondents identified eight dimensions of constraints, namely: a lack of access to services; funding constraints at start-up; lack of management capacity in the enterprise; access to tender contracts; compliance costs associated with VAT and labour legislation; liquidity stress; lack of collateral; and lack of institutional support. The provision of appropriate infrastructure and training, development of innovative loan products, and policies to reduce the cost of compliance with legislation affecting agribusiness SMMEs are some possible solutions to help deal with these constraints.Agribusiness,

Competition policy review

This is the first comprehensive review of Australia’s competition laws and policy in over 20 years. The National Competition Policy Review (The Hilmer Review) of 1993 underpinned the development of the National Competition Policy – a co-operative initiative of the Commonwealth and State and Territory governments that the Productivity Commission found contributed to a surge in productivity, directly reduced some prices and stimulated business innovation. The subsequent Review of the Competition Provisions of the Trade Practices Act (The Dawson Review) of 2003 examined the operation of the competition laws and resulted in some strengthening of the provisions. There has been considerable change in the Australian economy since the Hilmer Report of the early 1990s and the boost in productivity that underpinned the growth in living standards over the past two decades is waning. The Competition Policy Review will examine the broader competition framework to ensure that it continues to play a role as a significant driver of productivity improvements and to ensure that the current laws are operating as intended and are effective for all businesses, big and small.   MESSAGE FROM THE PANEL This is our Final Report reviewing Australia’s competition policy, laws and institutions. The Panel undertook a stocktake of the competition policy framework across the Australian economy. Although reforms introduced following the Hilmer Review led to significant improvements in economic growth and wellbeing, the Panel believes that renewed policy effort is required to support growth and wellbeing now and into the future. To this end, we have reviewed Australia’s competition policy, laws and institutions to assess their fitness for purpose. Taken together, our recommendations comprise an agenda of reinvigorated microeconomic reform that will require sustained effort from all jurisdictions. We believe this commitment is necessary if Australia is to boost productivity, secure fiscal sustainability and position our economy to meet the challenges and opportunities of a rapidly changing world. Given the forces for change already bearing on the Australian economy, delaying policy action will make reform more difficult and more sharply felt. An early response will make the reform effort more manageable over time, allowing Australians to enjoy higher living standards sooner rather than later. The recommendations and views expressed in this Final Report draw upon the expertise and experience of each member of the Panel. Importantly, we have also had the benefit of hearing from a wide cross-section of the Australian community and from participants in all sectors of the economy