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The New Supply Chains in Malaysia: Implications to the Fruits and Vegetables Producers

In: Organised Retailing and Agri-Business

Author

Listed:
  • Fatimah Mohamed Arshad

    (Universiti Putra Malaysia)

Abstract

The agricultural produce and food marketing in Malaysia are moving in tandem, albeit at a slower rate, with the structural changes that have taken place in the retail sector. Since 1980s, food retailing in the developed world has been characterized by the rapid development of large retail chains that integrate the wholesale function into their own company to become self-distributing chains. Due to big-scale operation, these retail chains have been able to introduce cost-saving innovations such as centralization of procurement, use of preferred supplier registries, formal contracts with suppliers and the promulgation of private quality standards. The saturation of consumer markets in the European Union (EU) and the growth of consumers’ disposable income in the developing economies have driven some of these retail chains to those areas including Malaysia. By mid and late 1990s, accelerated by globalization and enabled by information technology, a number of multinational retail chains have opened up hypermarkets in Malaysia. Some farm structural transformations are necessary to enhance the smallholders’ capacity and bargaining power to enable them to participate in the new supply chain structure.

Suggested Citation

  • Fatimah Mohamed Arshad, 2016. "The New Supply Chains in Malaysia: Implications to the Fruits and Vegetables Producers," India Studies in Business and Economics, in: N. Chandrasekhara Rao & R. Radhakrishna & Ram Kumar Mishra & Venkata Reddy Kata (ed.), Organised Retailing and Agri-Business, edition 1, chapter 6, pages 99-118, Springer.
    • Handle: RePEc:spr:isbchp:978-81-322-2476-1_6
    DOI: 10.1007/978-81-322-2476-1_6
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