The role of marketing channels in the determination of horizontal market structure: the case of fruit and vegetable marketing by British growers

This paper is concerned with the influence of marketing of channels, particularly wholesale channels, on the nature of competition at grower level. A series hypotheses are set up which are tested through research on British growers and Wholesales of fresh produce undertaken in 1994. The results demonstrate a close association between size of growers marketing organization and channel strategy with large growers more likely to supply range of outlets including ones with more demanding requirements and with smaller growers more dependent on the use of wholesale market. This reflects the competencies of the different seizes of supplier organization and the results demonstrate how the existence of particulars type of channels in turn influences the structure of completion at growers level. The results also show how the nature of the grower- wholesaler relationship locks smaller growers into the dependence on supply of wholesale markets