Comercio Granario

Drivers for competitiveness in agri-food chains:

A comparative analysis of 10 EU food product chains

WP4 EUMercoPol

Guido van Hofwegen

Gertjan Becx

Joep van den Broek

Wageningen, September 2005

Drivers for competitiveness in agri-food chains: A

comparative analysis of 10 EU food product chains

A report for the EUMercoPol project - WP4

Management Studies Group

Department of Social Sciences

Wageningen UR

Guido van Hofwegen

Gertjan Becx

Joep van den Broek

Wageningen, September 2005

2

Table of Contents

Table of Contents

3

Introduction

4

Drivers

5

1.

Market structure

6

2.

Regulation

10

3.

Chain Coordination

16

4.

Logistics

19

5.

Quality

20

6.

Added Value

22

7.

Costs

24

Overview

25

References

28

3

Introduction

There has been a large increase in vertical integration of agricultural and horticultural supply

chains in the EU since the 1990s. To survive in a more and more globalized and competitive

market, agro-related enterprises have to form and count on close associations with clients and

suppliers. Marked advantages of organising agri-food production in chains or networks of

companies are increased efficiency, flexibility and quality. Due to vertical integration, the

arena of competition is shifting from the scale of the individual business to the scale of the

entire supply chain. Especially in the food sector, business as usual has changed lately.

Retailers no longer focus on the four P’s (product, price, place and promotion), but are more

keen on: traceability, reliable supply and long term relationships (Skytte & Blunch, 2001).

Supply chain management can be defined as the planning and management of all activities

involved in sourcing and procurement, conversion, and logistics management (CSCMP,

2005). Importantly, it also includes coordination and collaboration with channel partners such

as suppliers, intermediaries,...