Every once in a while there is another intend to picture the relationships of the participants of the Fresh Fruits and Vegetables business in their own Value Chain. In my opinion, the majority of those try-outs fail to explain the new balance of power that is emerging nowadays since they typically start the chain at the farming level.

Following these lines I want to contribute with a new representation of the Fresh F&V Value Chain that integrates many more players beyond traditional upstream limits. Even though some of those players might well be considered side activities, there are definitely others that are of key importance for the future of this business as a whole.

Especially Food R&D companies and also those controlling development and breeding of horticultural seeds and fruit trees are shaping today; this industry future and they pose a counter balance of power to current king of the chain-Modern Retail.

The chain is presented taking separately into consideration two different factors: the number of independent (those acting for themselves and not engage in any cooperation or consortium) participants and the Bargaining Power Potential of each slab.

The implications of this new way of looking at the Fresh F&V business are many. The bargaining power potential send a clear message of where margin erosion, players consolidation and value change collaboration (also conflicts) may occur.

Growers and producers are facing a sustain “squeeze” for the time being and they will need to find economies of scale, lower cost structures or added value. I also wonder how this world will develop with the ruling presence of 2 “Monarchs of the Chain” – Modern Retail and Food and Farm R&D.

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