The small enterprises of the Hungarian retail market of food and related commodities are in a dismal crisis, many of them gotbankruptcy, whereas fruit and vegetables are offered in large shop-chains and supermarkets. Traditional small shops near to the domiciles arestill highly esteemed by the population and their lack is regretted especially because of commodities for fresh consumption. For the purposeto evaluate the situation, I planned the comparative study of fruits offered in the retail markets by tracing their origin, quality and prices. Fromthe six shops selected for the study three represent department stores belonging to different chains. Independent entrepreneurs manage thenext three shops of vegetables with own suppliers. It was stated that the retail shops offer mainly fruits of Hungarian growers. It is howeverworthwhile to state that the origin of the produce was frequently not marked. The fruits imported from abroad, apple, pear, peach, were soldat substantially higher prices than those of Hungarian origin

J., Felföldi

University of Debrecen Electronic Archive

Introduction
In Hungary, during the last 15-year-long period,
vegetable and fruit production gained much more prestige in
the agricultural economy. During the period mentioned, the
international market of vegetables and fruits changed a lot.
Earlier the ratio of processed to fresh produce was 60:40%,
but at present, the fresh offer increased, and this trends is also
sensible in Hungary.
The channels of sale are charged with the task to connect
the grower with the consumer regardless of the physical
distance between the two participants (just in the
neighbourhood or hundreds of kilometres away) (Hoffman,
2000)
The system of distribution changed radically (also on the
home markets) with the appearance of department stores and
supermarkets in Hungary. The competition of prices was
transformed to another type of competition, where not the
prices alone are on the stake. The role of security, quality and
environmental protection grew, and the professionalism took
other form, which altered the path of products also in the
agriculture (Ferencz, 2006).
The number of grocer’s shops dwindled in Hungary
dramatically, and it accelerated in 2004, when 48 new
discount markets and 15 hipermarkets have been opened, at
the same time, 869 small shops gave up. The concentration is
expressed by the bankruptcy of the small enterprises. Within
four years, the number of hypermarkets more than doubled,
last year 92 hipermarkets existed in the country. Discounts
and Supermarkets grew in one year from 752 to 813 (Bajai,
2006).
According to the statistics of the Planet Retail Co., the
turnover of the discount shops is still rising in Europe, and it
is estimated that it will attain in 2010 the 36% of the trade.
But also the income of discount is increasing, which means
that the buyers like it too (Madarászné, 2006b).
The expansion of chain shops is continuing in Hungary
(after 2008, the “had discount” appeared), therefore, the
concentration of the fruit- and vegetable commerce is an
indispensable phenomenon. On the contrary, the Hungarian
population is still sticking to the idea to maintain the small
shops near to the their domicile especially for the
commodities for fresh consumption, i.e. grocers, which offer
fruits and vegetables, whereas in the modern trade, the
package in trays and boxes is less popular (Madarászné,
2006a). „In the department stores managed by foreign
enterprises, fruits imported from the Southern Hemisphere
appeared in an excellent package, whereas the apple of the
domestic growers was frequently offered only in bulk (lédig),
so the image of the domestic horticulture, which should be
sympathetic for the buyer, all over Europe, is not exploited in
Hungary.” „It seems that in the business policy of the modern
department stores the Hungarian apple is not a matter of
concern” (Gonda, 2006).
Materials and methods
The following objectives have been planned in order to
clear the unexplored details.
1. The main characteristics of the fruit offered in the
retail markets.
The main properties of fruit offered
on the retail market in Hungary
Felföldi, J.
University of Debrecen, Department of Agrobusiness Management, Faculty of Applied Economics
and Rural Development
Summary: The small enterprises of the Hungarian retail market of food and related commodities are in a dismal crisis, many of them got
bankruptcy, whereas fruit and vegetables are offered in large shop-chains and supermarkets. Traditional small shops near to the domiciles are
still highly esteemed by the population and their lack is regretted especially because of commodities for fresh consumption. For the purpose
to evaluate the situation, I planned the comparative study of fruits offered in the retail markets by tracing their origin, quality and prices. From
the six shops selected for the study three represent department stores belonging to different chains. Independent entrepreneurs manage the
next three shops of vegetables with own suppliers. It was stated that the retail shops offer mainly fruits of Hungarian growers. It is however
worthwhile to state that the origin of the produce was frequently not marked. The fruits imported from abroad, apple, pear, peach, were sold
at substantially higher prices than those of Hungarian origin.
Key words: fruit offered, retail market, price, origin
International Journal of Horticultural Science 2010, 16 (4): 67–69.
Agroinform Publishing House, Budapest, Printed in Hungary
ISSN 1585-0404
68
2. The comparison of the fruits offered in different types
of shops.
3. We have to check the validity of the often heard
contention:
A. The imported foreign fruit is more expensive than
that grown in Hungary
B. Department stores sell fruit cheaper than the small
shops for vegetables and fruits.
The data are collected in Debrecen, the second largest
town of Hungary. During the period between June and
February of the next year, i.e. over 8 months, we performed
1150 observations in 6 shops of the retail market. Three of
the retail shops belonged to large department stores, whereas
the other three were shops of small enterprises, all of them
had their own supplier. The observed fruits were: apple, pear,
sour cherry, nectarine, peach, apricot and plum. The
properties observed were: origin, package, price and quality
class. In this study, species, variety, origin and package have
been compared and evaluated..
Results
First, I have registered, what was the origin of the fruits
offered in the shops, from Hungary or from another country.
The common opinion supposed that in the department stores
offer mainly imported fruits.
In the department stores, 62% of fruits were of Hungarian
origin, 14% of foreign country and 24% was of unknown
origin. This proves the poor attention paid for quality of the
shopkeepers. In the department stores, the information upon
the origin, price (?), variety was often deficient, sometimes
the data were aimed to fruits, which were not exposed at the
moment. In one department store, this deficiency occurred
repeatedly. In the small shops (Vegetable and fruit shops),
96% of the fruits was of Hungarian origin, 4% imported from
Italy. The sign of the origin was also in some cases deficient,
and the questions were answered evasively. The imported
fruits have been scarcely represented in the small shops, that
is sure. The small shopkeepers gave always acceptable
answers, although the origin was not always obviously
signalised.
As the fruit of unknown origin are found at considerable
rates, we may suppose that they are of foreign origin, 24 + 14
= 38% is already a high rate, but still less than 62% of fruit of
Hungarian origin.
As a result, I stated that most of the fruits: apple, pear,
sour cherry, nectarine, peach, apricot and plum are of
Hungarian origin.
In the department stores the apple offered was of
Hungarian origin at 63%, of unknown origin 31%, from Italy
5%, from Chile 1%.
In apple, as well as in all fruits, the dominance of
Hungarian origin is clear. The same rates are found in pear,
sour cherry, nectarine, peach, apricot and plum. In the small
shops, almost 100% of apples are of Hungarian origin and a
small fraction of Italian import. In other fruits, the same was
found.
The comparison of the prices was initiated to check the
contention that fruits are cheaper in the large department
stores shops than in the small shops. The mean prices are
compared in Table 1.
The average price of apple was 217 Ft/kg in the
department stores, and 166 Ft/kg in the small shops, which
means that the large shops are more expensive. The
difference is 51 Ft/kg significant, therefore not accidental.
In the case of pear, the price was 362 Ft/kg, and 436
Ft/kg, the difference was in the opposite sense: the small
shops offered at higher price the commodity than the large
shops, moreover, the difference was larger (74,13 Ft/kg) and
also significant.
Felföldi, J.
Figure 1. Distribution of the fruits of different origin in the department
stores
Source: original calculation
imported
14%
Hungarian
62%
unknown
24%
u
Figure 2. Origin of apples offered in the department stores
Source: original calculation
unknown
31%
Chilean
1%
Italian
5%
Hungarian
63%
Table 1. Comparison of the mean prices of fruits sold in different types of
retail shops
Fruit
Mean prices in Mean
department prices in
Price
stores small shops
Significance differences
(Ft/kg) (Ft/kg)
(Ft/kg)
Apple 217 166 < 0.05 51
Pear 362 436 < 0.05 74
Nectarine 374 372 1 2
Peach 282 396 < 0.05 113
Plum 167 325 < 0.05 159
Source: original calculation
69
In nectarine, the average prices were 374 Ft/kg and 372
Ft/kg respectively, and not significant. The contention
referred to cannot be supported in the case of nectarine.
In peach, the average prices were 282 Ft/kg and 395
Ft/kg in the department stores and in the small shops
respectively. Department stores sell cheaper than the small
shops. The difference is significant. The difference is even
larger that in the case of pear: 113 Ft/kg.
In plum, the average prices were 166 Ft/kg and 325 Ft/kg
in the department stores and in the small shops respectively.
Department stores sell cheaper than the small shops. The
difference is significant. The difference is even larger that in
the case of peach: 158 Ft/kg.
For sour cherry and apricots, the lack of sufficient data
did not facilitate a similar analysis as the former fruit species.
This season was not favourable for those fruits.
As shown in Figure 3, in case of the three fruit species,
peach, pear and plum, the small shops sell the fruit at higher
prices than the large department stores. The difference was
largest in plum (158 Ft/kg), then in peach (113 Ft/kg) and in
pear (74 Ft/kg).
As a conclusion, we may state that common opinion is
valid in the last mentioned three fruit species, but not in the
case of apples.
Conclusions and suggestions
First, I studied the origin of the fruits sold in department
stores and in small shops because it was generally believed
that the department stores sell mainly imported fruits, and the
small shops prefer the trade with fruit of domestic growers.
At the same time it turned out that also the department shops
do not inform the buyers about the origin of their commodity,
neither their quality class, nor the price and the variety, which
means a deficiency in the commerce. It happened that the
fruits offered have not been provided with due information,
and the labels were not properly associated with the offered
goods. It is expected to supply the buyer with information of
the origin, quality, variety and price of the commodity.
The comparison of prices between the retail shops of
different type, department store and small shops, was
planned to check the contention widely believed that
department stores sell fruit at lower prices than small shops.
The results justified that situation in the case of three
different fruit species, pear, peach, plum but not in apple.
Apple is sold cheaper in small shops.
If the prices of home grown fruits are compared with
those of the imported ones we can generally state that the
foreign grown fruits are more expensive than the home
grown fruits. This is true for apple, pear and peach, they cost
much more for the Hungarian consumer than as domestic
commodity.
The development of the fruit trade depends largely from
the trading traditions, the careful harvested, selected and
packed utilising the necessary infrastructure, but the fruit as
a commodity should be provided also with the necessary
information. However, in Hungary, there is still a lack of
commodities of the quality desired by the market, in spite of
the favourable conditions. It easily happens that the fruit
offered does not fulfil the expectations. The technical
conditions of transport, manipulating, packing should be
completed with a purposeful marketing organisation in order
to meet the requirements of the market.
Acknowledgements
This paper was supported by the János Bolyai Research
Scholarship of the Hungarian Academy of Sciences
References
Bajai, E. (2006): Két év alatt megszûnt 1800 kisbolt. Zöldség- és
gyümölcspiac, 10. (4–5): 18. p.
Ferencz, A. (2006): Keresi a piac az étkezési minôséget. Zöldség-
és gyümölcspiac, 10. (8–10): 25. p.
Gonda, I. (2006): Mi lesz veled magyar alma?! Debrecen, 2006.
10–14. p.
Hoffmann, I. (2000): Stratégiai marketing. Aula Kiadó Kft.,
Budapest
Madarászné, F. I. (2006a): A frissgyümölcs-fogyasztás ötletes
népszerûsítése. Zöldség- és gyümölcspiac, 10. (6–7): 28. p.
Madarászné, F. I. (2006b): Európa-szerte elôretörnek a diszkont
áruházak. Zöldség- és gyümölcspiac, 10. (8–10): 25. p.
The main properties of fruit offered on the retail market in Hungary
Figure 3. Average prices of peach, pear and plum sold in department stores
and in small shops.
Source: original calculation
0
50
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150
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250
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peach pear plum
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The main properties of fruit offered on the retail market in Hungary

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The main properties of fruit offered on the retail market in Hungary

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