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Abstract

In the 1990s, the supermarket sector grew outpacing several times the economy's growth. Even when the sector was dominated by domestic firms and per capita income fell considerable, supermarkets increased their share on national Fresh Fruit and Vegetable (FFV) consumption from 10% in 1992 to 30% in 2001. The article analyses the rise of supermarkets and the impact of its procurement system on the produce industry using a value chain approach. It shows that as supermarket supply chains are buying less from domestic traditional wholesale markets and shifting toward importing, that means steadily falling demand for local suppliers. Also the implementation of international procurement systems put the growers in direct competition with the export markets but in their domestic markets.

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