Barriers and Constraints in Distribution of Fresh Fruit and Vegetables from New Zealand through to Asian Markets. An Exploratory Case Study

Abstract

Distribution and supply chain operations are crucial elements in the fresh fruit and vegetable industry. Furthermore, due to the intrinsic perishable and fragile nature of fresh produce, supply chains are required to be robust and well managed for ensuring quality preservation and lowering of produce spoilage. In order to optimise the fresh produce supply chain, researchers have stated the need to understand its generic nature, identify key barriers along the chain and recognise critical success factors. However, there is a lack of research around these aspects of supply chains originating in New Zealand and ending in Asian markets. This research aims to understand these aspects. Due to the unique nature of the study, an exploratory case study was used. In particular, a qualitative descriptive approach was conducted, whereby semi-structured in-depth interviews were administered to the sample population. The collected data was systematically and critically analysed in order to identify common themes and ideas. The findings from the study identified two main models of fresh fruit and vegetable distribution from New Zealand to end destinations in Asian markets, namely the traditional and modern models. The traditional model, being the dominant model utilised in most Asian countries, represents a system where fresh produce are distributed through importer-wholesaler systems to various downstream stakeholders. In contrast, the modern / emerging model is characterised by a strategic contractual relationship between exporters and end customers, being either retailers or supermarkets and the produce is distributed to end customers according to ‘supply programmes’. The research identified a number of key barriers along fresh fruit and vegetable supply chains from New Zealand to Asia, including market access issues, technology and infrastructure problems and human capital restraints. These barriers were found to result in the diminishment of produce quality, increased wastage or pose as market entry issues. Chapter Four discusses these barriers in detail. Furthermore, the participants explicitly outlined the strong need for investment in technology and infrastructure elements and the need to provide training and education to workers in the chain in order to establish a robust fresh fruit and vegetable chain. This research adds to the academic literature and provides significant insights regarding key elements of the fresh produce supply chain. These insights provide an opportunity for the New Zealand fresh fruit and vegetable industry to optimise the supply chain to Asian markets and to enhance value for the various stakeholders along the chain.