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Supermarkets in Mexico: Impacts on Horticulture Systems
Author(s) -
Schwentesius Rita,
Gómez Manuel Ángel
Publication year - 2002
Publication title -
development policy review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.671
H-Index - 61
eISSN - 1467-7679
pISSN - 0950-6764
DOI - 10.1111/1467-7679.00185
Subject(s) - consolidation (business) , supply chain , business , distribution (mathematics) , agricultural economics , economy , marketing , economics , finance , mathematical analysis , mathematics
This article examines the very rapid rise, consolidation, and multinationalisation of the supermarket sector in Mexico over the past decade. This development had profound impacts on fruit and vegetables supply chains. Supermarkets created their own distribution centres and contractual arrangements with growers, giving rise to supermarket supply operations by agroexport and agroindustry firms and a shift away from traditional wholesalers. The challenging requirements of selling to these new actors pose problems for small farms and firms. This article examines the case of a co–operative of small farmers that tried — and failed — to become a lime supplier to supermarket chains. It concludes with recommendations on ways to help small farmers meet the challenge of the rise of supermarkets.