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For the needs of the present report, we developed a synthetic supply chain index combining the
indicators relating to companies producing fresh and processed fruit and vegetables, wholesalers,
quality signs and the regional economic environment.

Table 3: Composition of the synthetic RVI (SRVI)

Strategic determinants ___________(Score functions)___________	Indicators
Structure and performances of the fruit and vegetable producers (FF&V)	- Total production of fruit and vegetables, population growth, average production per farm, investment rate, subsidy rate subvention, mark-up, labour productivity, production costs in the “fruit” and “vegetable” sectors (source: FADEN⁷) - Share of fruit and vegetables in regional agricultural production - Number of PDO and PGI
Structure and performance of fruit and vegetable processing companies (PF&V)	- Size, concentration, growth of turnover, financial autonomy, asset yield, net mark-up, labour productivity, cost structures and levels: raw materials, interests, taxation (Source: AMADEUS) - Density of fruit and vegetable industries, share in regional manufacturing industry
Density and quality of the marketing operators at wholesale level (MKO)	- Number, total turnover, variation in total turnover, average turnover, gross mark-up, net mark-up, productivity of fresh fruit and vegetable wholesaler employees (Source: AMADEUS) - Number, total turnover, average turnover, personnel, assets, gross mark-up, productivity, profitability, financial autonomy of food wholesalers (Source: AMADEUS)
Conditions of the economic environment and the regional institutional situation (WRI)	- Population density, demographic growth - Growth of GDP, purchasing power, - R&D spending/GDP (source: EU-Cronos/Regio)

The regional vulnerability index is inversely proportional to the sum of the scores of the four components.
Vulnerability can be seen as the opposite of competitiveness as the score functions are estimators of
regional, sector-based and global economic performance. The SRVI is a relative, rather than absolute,
measurement of competitiveness/vulnerability. The values of each score function included in the SRVI
are calculated in relation to the average for the regions considered. The index is estimated using the
following equation:

IVR = 1/[ (FF&V) x α + (PF&V) x β + (MKO) x λ + (WRI) x θ]
with α, β, λ, θ the weighting coefficients defined by simulation and assessment.

Programming the score function then enables us to define regional vulnerability scenarios according to
the weight given to each coefficient.

⁷ FADEN: Farm Accounting Data European Network

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