The fresh produce wholesale market may be a thing of the past for more economically developed countries, according to one US market manager.
Don Darnell, executive director at Maryland Food Centre Authority (MFCA), Baltimore, USA, told delegates at last week´s WUWM congress that while the wholesale industry in some countries was only just starting to thrive, US food industry had entered a time of inexorable change.
He said: "The success of wholesale markets in France and some Eastern European countries is based on socialist principles where protectionism occurs because of government support.
"People think that our agricultured is behind the times in the US but wholesale is the horse and carriage and off-site distribution is the automobile."
Martin Dresner, an economist and researcher at the University of Maryland agreed that wholesalers in the US faced strong challenges from integrated third-party logistics providers better able to accommodate large orders and distribution, and offer increase security measures, thanks to advances in IT capabilities.
Dresner said the markets´ success had been compromised by an unwillingness among tenants to invest and an ability to look at long-term issues.
Darnell said the large, successful businesses were increasingly moving off-site to expand, and therefore markets were often plagued with less efficient tenants.
"I've always said it would be nice if market managers could operate like retail mall managers and choose the best mix of tenants. Malls don´t tolerate old-fashioned looking stores. If they can´t keep bang up to date, they will be replaced by someone who can," he said.
Dresner agreed that diversity should be a top priority for traders hoping to survive:
"New markets are emerging, particularly in areas where Hispanic and Asian communities are growing, and the interest in organics.
"There is a definite opportunity for wholesale markets to provide important niches even if they are never again going to play a central role in the supply chain."
