Agriculture Reference
In-Depth Information
primary customers among the major retailers (and in some cases foodservice opera-
tors). Specific crops and cultivars will be grown for a specific primary customer
according to pre-determined planting programs which are, where possible, agreed
upon ahead of the season and are informed by historic data on consumption and
other market intelligence. For products where demand is predictable and is less af-
fected by weather or where extended storage can better ensure extended availability
(e.g. apples, onions and potatoes) these procurement programs tend to work well.
For products where demand is more volatile then there is an increase risk that pro-
curement programs fail. Growers will usually over produce to ensure that product
can always be supplied in full and this may have an influence on crop utilization and
waste (Terry et al. 2011 ). It could be argued that excess volume is in commercial
interest and that growers must fulfill orders or risk losing business. There is recogni-
tion that over-programming can result in increased waste, but it is also understood
that some degree of buffering against unforeseen problems in supply is essential.
Procurement programs are influenced by planned promotional activity. For ex-
ample for strawberries, retailers determine promotional campaigns and these plans
are discussed with suppliers, yet they are based on key dates, e.g. events in the
social calendar viz. Wimbledon Lawn Tennis Tournament and predictable crop
flushes and are aimed to maximize crop utilization.
As a season progresses and crops near maturity allocations can be made between
quality tiers and customers (Terry et al. 2013 ). For example, if a crop grown for the
premium tier fails to meet the desired specification then it may be switched to the
standard or even value tier. This practice can undermine however, the differentia-
tion between the quality tier offerings if noticed or understood by consumers. When
a crop does not meet a specification and where there are limited alternatives for
downgrading or alternative sourcing then specifications can be relaxed. Often the
difference between tiers is largely subjective and will vary from time to time and
according to variety, sizes and pack formats. The flexibility of the fresh produce
industry in many developed economies enables the shifting of crop between quality
tiers depending on shortage/surplus position such that specifications will differ by
tier but can be fairly flexible depending on volumes available. Fruit 'tiering' is more
resilient as it is more based on cultivar whereas vegetables and salads are more dif-
ficult to tier.
Although specifications are regarded by all retailers as key to defining and dif-
ferentiating apparent product quality and are stringently adhered to, there is still
some degree of plasticity when availability is stretched (i.e. as seen in 2012/2013
as a result of the poor weather conditions in Northern Europe during 2012). The
advantage of the three tier system allows for some degree of product differentiation.
If the crop does not meet the specification of any primary customer then it is usually
switched to processing or wholesale markets (though increasingly both these 'sec-
ondary' markets also require products grown to a specification) (Terry et al. 2013 ).
It is inevitable that there will be product that does not meet any market specifica-
tion. The amounts will vary product by product and season by season (Terry et al.
2011 ). These products will suffer quality defects including disease that may make
them unsuitable for human consumption. These products will be variously used for
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