Concentration of demand

In recent times, we have heard many times about the ‘concentration of supply’. For many, this could be an important tool to strengthen the productive structures as well as the possibility to give to Almería a greater bargaining power and influence on the international fruit and vegetable markets.

However, at the same time, among others issues involved in the retail chain, we are taking part on concentration processes that could be called ‘concentration of supply’ as a reference to the arrangement of companies within the wholesale business.

Also, our customers, which are the companies sending our products up to final consumers, are involved in a business concentration movement towards a more reduced numbers of companies within the distribution segment. Those companies are really strong and present all around the continent. If it is logical then that this concentration produced in the origin of the production became also produced in destiny, in the final stage of the trading process.

This obviously affects us. It has great influence on fruit and vegetable production and, therefore, in Almería. With this process, distributors are becoming even stronger and as a consequence, they have greater ability to mark producing and marketing lines of work for fruit and vegetables.

In fact, that process began long time ago due to distribution is in constant contact with the final customer. This segment of business a study market trends and customer demands and even suggests new lines that could be successful in the market. One of its missions is to bring those trends to the production stage, looking for companies and producers willing to be adapted to those lines of work focus on the satisfaction of consumers.

In Agroponiente, we have been also a long time implementing this philosophy of work, informing our growers with the demands of the final consumer and therefore the demands of the market and distribution. Having this information, we all could answer with solvency, professionalism and strength, and thus have the best commercial conditions.

The philosophy is simple: if we are able to give our customer what they are demanding, we will compete better and so have better results for our crops. Otherwise, if we work according only to our own ideas without having into account the market, we will have poorer commercial valuations as well as less expectations of growth.

With the ‘concentration of supply’ two facts are clear. The firs one is that if we are able to answer to market demands, we will have higher capacity to demand profits for our production, and the second one is that distribution increases its capacity to demands regulated production processes.

So, to sum up, it could be said that anyway something is crystal clear- it is a must to keep working with effort to answer to what the market demands. This is the way to increase our profits and to keep working with big distributors, who at the end of the day are the engine of the supply chain in Europe.