THE U.S. WHOLOSALE PRODUCE INDUSTRY: STRUCTURE, OPERATIONS AND COMPETITION

Increases in consumer demand for fresh produce, changes in technology and management practices, and industry consolidation have placed pressures on the U.S. produce marketing system such that important structural changes are taking place.
The objective of this study was to analyze the structure and operating practices of the produce wholesale system.
This was the most comprehensive study of the U.S. produce wholesale system in forty years.

Two hundred five produce wholesalers responded to a comprehensive, national survey.
Managers within the industry were also interviewed to provide interpretive insights into survey results.
In addition, produce grower/shippers, retailers and foodservice operators were surveyed about their business relationships with produce wholesalers.

Of all produce consumed in the U.S., approximately fifty percent travels directly from grower/shipper to final food retailer or foodservice operator.
The remaining fifty percent is handled by the produce wholesaling segment.
Some significant changes in produce wholesaling are the changing functions of wholesalers and their relationships to the rest of the industry.
Individual firms engage in more and diverse business operations with many firms performing all wholesaling functions of repacking, brokering, wholesaling, distribution, importing and exporting, and even processing.
In 1996, “non-traditional” produce items, such as specialty and organic, accounted for 28 percent of average wholesaler sales.
Wholesalers offering merchandising services have increased from approximately 16 percent of the total in 1958 to 95 percent in 1997.

XXV International Horticultural Congress, Part 14: Horticultural Economics at Micro and Macro Level, International Trade and Marketing, International Cooperative Programs, Relations between Research, Development, Extension and Education

K.S. Park, E.W. McLaughlin

wholesalers, distribution

https://doi.org/10.17660/ActaHortic.2000.524.23