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The New Supply Chain: Implications to the Fresh Fruits and Vegetables Sector in Malaysia

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  • Fatimah Mohamed Arshad

    (Institute of Agricultural and Food Policy Studies,Universiti Putra Malaysia,Infoport 43400 Serdang, Selangor, Malaysia)

Abstract

This paper traces the growth of the new retail formats such as hypermarkets, departmental stores and supermarkets and its implications to the fruits and vegetables sector in Malaysia in particular to the small producers. The structural differences between the new supply chain and conventional marketing are compared. Some measures of concentration are provided to indicate the degree of competition in the retail sector. Within less than a decade, the new super retailers were able to capture a significant market share of the local fruits and vegetables at the expense of the small time local retailers. Their procurement system which emphasizes on consistent supply and rigid quality standards indirectly cuts off the small farmers from the supply chain. New type of intermediaries, packing houses emerge replacing the traditional middlemen role usually performed by small time wholesalers or traders at the farm level. To integrate the small farmers into the new supply entails a reformation programme that enhances productivity, product quality and institutional restructuring towards cooperative movement.

Suggested Citation

  • Fatimah Mohamed Arshad, 2012. "The New Supply Chain: Implications to the Fresh Fruits and Vegetables Sector in Malaysia," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 2(4), pages 256-282, August.
    • Handle: RePEc:mir:mirbus:v:2:y:2012:i:4:p:256-282
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    References listed on IDEAS

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    1. Michael Boehlje, 1999. "Structural Changes in the Agricultural Industries: How Do We Measure, Analyze and Understand Them?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1028-1041.
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    Cited by:

    1. Umair Waqas & Azmawani Abd Rahman & Normaz Wana Ismail & Norazlyn Kamal Basha & Sonia Umair, 2023. "Influence of supply chain risk management and its mediating role on supply chain performance: perspectives from an agri-fresh produce," Annals of Operations Research, Springer, vol. 324(1), pages 1399-1427, May.
    2. Chin, Denise, 2015. "Supermarkets in Malyasia's Food Supply Chain: Influence on Traditional Supply Chain and Implications for Contract Farmers," 2015 Conference, August 9-14, 2015, Milan, Italy 211464, International Association of Agricultural Economists.

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