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Abstract
Since the rapid expansion of modern retailers in Turkish agro-food market, competent
intermediary's forms are required to match up their exigent demand in fresh fruit and
vegetables (thereafter FFV) procurement - namely, volume, regularity or quality- with a very
fragmented national supply provided by small family farms.
In this context, the aim of this paper is twofold: it first develops a unified theoretical
framework that compares the costs incurred by producers when deciding to market their
produce through a private agent or through a marketing cooperative. Drawing on marketing
cooperatives theories and transaction cost arguments, we put forward that these systems do
not prove the same ability to allow for quality upgrading, above all at the producer's level.
Second, we analyze on this basis the recent evolution of the FFV sector in Turkey: the
Turkish Wholesale Market Law enacted 1995 establishes commission producer's agents on
FFV wholesale market halls who effectively collect an atomized supply and guarantee the
access of small producers to large scale markets. Moreover, the simultaneous attempt to
promote traditional cooperatives as alternative channels turns out to be less successful: small
size, lack of funding and skill shortage hampered their development.
However, public authorities recently promote the emergence of new types of marketing
cooperatives whose initial endowment in capital and technical skills is high. The latter
progressively turn to offensive strategies of quality upgrading and market access to new
opportunities, whereby they have to set screening rules marginalizing small and vulnerable
producers in order to achieve this goal. In our view, this evolution in the governmental
intervention illustrates a determinant trade-off faced by the public authorities: namely, the
choice between assuring the inclusion of the major part of producers in the market and
boosting productivity and quality upgrading at the production level for more demanding
markets.