Developments and Development Directions of Electronic Trade Platforms in US and European Agri-Food Markets: Impact on Sector Organization



M. Fritz, et al. / International Food and Agribusiness Management Review Volume 7, Issue 1, 2004

Current development tendencies rather point to a support of existing organizational
structures than to the disintermediation of existing value chain elements or a
shortening of the value chain. This observation sustains that, e.g., due to their
value-added services traders in the food supply chains may not be easily replaceable
(e.g., Mueller, 2003).

An adapted e-commerce mega-hub allowing for transaction transmission will
penetrate the agri-food sector and may lead to more efficient transactions (Hausen,
Schiefer 2003). The mega-hub may be seen as interorganizational information
system (see, e.g., Alter, 2002) for the agri-food sector allowing for the emergence of
ad hoc supply chains. The networked trade platforms enable an increasingly
networked sector with a new appearance. Middle-term development tendencies in
sector organization such as networked ad hoc supply chains become apparent. The
value-added service CPFR, e.g., increases vertical cooperation between agri-food
chain members and directs towards a network of agri-food value chains. As a
consequence, the platform net may be considered as „driving force“ and enabler for a
more and more vertically and horizontally cooperating agri-food sector.

Conclusions

Electronic trade platforms for the support of food trading transactions have entered
the agri-food sector only a few years ago. However, there already have been
dramatic changes in the sector’s platform infrastructures. Of the 85 platforms
monitored in the year 2000 only 25 remained active in 2002. But there are still
market entries of new platforms and existing platforms form various types of
partnerships.

The analysis could identify a range of development strategies of successful
platforms. Cooperation initiatives with other platforms for the use of specific
features and the development and use of standards, gaining support by major
market participants, the improvement of trading functionalities and the expansion
of value-added services are the primary lines of trade platform development and
evolvement.

Platform evolvements and the present occurrence of the trade platform
infrastructure allow for projecting an agri-food sector with embedded,
interconnected e-commerce infrastructure or mega-hub leading to a more networked
agri-food industry.

References

Alter, S. (2002). Information Systems. The Foundation of E-Business. 4th Edition.

Upper Saddle River: Prentice Hall.

18


© 2004 International Food and Agribusiness Management Association (IAMA). All rights reserved.



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