98th EAAE Seminar
Marketing Dynamics within the Global Trading System: New Perspectives
Chania, 29-30th June, 2006
Regional Benchmarking of the Fruit and Vegetable
Supply Chains in the Context of
the Euro-Mediterranean Free Trade Area
Jean-Louis Rastoin*, Nassima Ayadi* and Jean-Claude Montigaud**
*Agro.Montpellier, UMR Moisa, ** Inra, UMR Moisa
Abstract: This paper deals with the economic impact of agricultural trade liberalization on the fruit and vegetable
marketing chains of five EU Mediterranean countries. The theoretical tools of this research are based on industrial
organization (Scherer, 1973), strategic analysis (Wernerfelt, 1984), global commodity chain concept (Gereffi, 1994)
and A. Sen’s capabilities approach (Sen, 1985, 1993). A “synthetic regional vulnerability index” (SRVI) is built
through an inter-regional benchmarking. The SRVI itself is calculated from a range of indicators taking into account
the following aspects: concentration and production specialization in fresh and processed fruit and vegetable supply
chain, different forms of organization and public incentives, average period dynamics, economic and firm
performances, sector-based and macroeconomic environmental constraints. The SRVI aggregates 4 linear functions.
An impact simulation, combining 4 scenarios suggests a typology with 3 groups of euro-Mediterranean regions:
strong vulnerability (10 regions), average and low vulnerability (10 regions for each category), highly linked with
GDP/capita.
Keywords: Supply chain analysis, Fruit and Vegetable Sector, International Benchmarking, Actor’s strategies
The issue dealt with in this text is based on the hypothesis of international trade liberalisation of
agricultural and agri-business products within the framework of the future Euro-Mediterranean free trade
area which should be created by the 2010-2015 time horizon. This liberalisation will certainly affect the
sectors concerned, both within the European Union and in the southern and eastern Mediterranean
countries (SEMC), with the risk of abandonment of activity (and therefore increased unemployment) and,
in certain cases, urban densification detrimental to the environment (Radwan and Reiffers, 2003).
The aim of this research, pursued in the framework of a European programme1, is to evaluate these
impacts and to propose public policy measures aimed at reducing the negative shocks. We have
endeavoured here to characterise an important sector in 5 Mediterranean countries within the European
Union (Spain, France, Greece, Italy, Portugal), i.e. the fresh and processed fruit and vegetables supply
chain, and then to measure the “vulnerability” of the regions concerned in these countries to an
intensification of competition from the SEMC. This evaluation leads us to undertake a comparative inter-
regional benchmarking, identifying the strengths and weaknesses of those European regions, which are
highly specialised in the fruit and vegetable sector.
The research lie primarily in the theories of industrial organisation (Market structure analysis, Scherer,
1973), resources, competencies and capabilities (Wernerfelt, 1984, Sen, 1985) and global value chains
(Gereffi, 1994). These theoretical models lend themselves very well to the analysis of agri-business
supply chains (Montigaud, 1992).
The EU is the leading world market for fruit and vegetables, with an apparent consumption per capita
of almost 300 kg in 2001-2003, with the global average lying at 183kg. In light of the recommendations
of nutritionists, who stress the considerable health benefits of consuming fruit and vegetables, we might
conclude that the growth prospects of this market are favourable. Some years ago, in high-income
countries, the traditional trend towards a more rapid development of processed fruit and vegetables was
reversed. At present, it is fresh produce, including the 4th range, which is progressing more quickly.
1 EU-Sixth Framework Programme Priority 8.1, Policy-oriented research, Integrating and Strengthening the
European Research Area, FP6-2002-SSP-, Impacts of Agricultural Trade Liberalization Between the EU and
Mediterranean Countris, n° 502457, coordinated by par Florence Jacquet, Scientific administrator at Ciheam-Iam of
Montpellier.