Fruit and vegetables supply chain organization in Spain: effects on quality and food safety

The Spanish fruit and vegetables sector is both diverse and fragmented, comprising many different players whose produce varies according to its geographical origin. However, these players tend to converge in the latter stages of the distribution process of their products. Therefore, for the purpose of analysis it is advisable to group homogeneous products and similar characteristics, which usually belong to particular areas, since the type of supply chain depends on the destination of the goods. In Spain, supply chains are highly adapted to the type of market to which they belong and consequently to the type of retailer at the end of the supply chain. All too often producers commercialize their products in total ignorance of the channel that they will follow to consumers. This hinders the necessary vertical coordination and collaboration within the channel to optimize its function, particularly as regards quality management and sanitary monitoring of the products. The principal scenarios in which Spanish distribution channels play a major role are the EU, domestic and local markets. The typical outlets corresponding to these areas of the retail market would be the Spanish and European mass distribution self-service stores, the small specialized warehouse, and street markets or street vending. Exports via the supply chain to Europe have constituted by far the largest change this sector has undergone. Both the European channels and those which continue to supply domestic markets, which have also undergone significant customization, form the basic structure of the current fruit and vegetables distribution sector in Spain. In essence, this distribution network system is strongly oriented to exports, innovation and the implementation of new technologies. The simplest descriptions of the fruit and vegetables distribution system in Spain describe it as: i) a "long channel” involving numerous intermediaries; and ii) a "short channel" arising from changes in both productive and commercialization stages. In both cases, the effects on quality management can vary greatly, influencing the food safety of the product reaching consumers.
Working Paper within the project: “Food safety regulations, market access and international competition, SAFEMED” (nº 219262 FP7-ERANET ARIMNET)