Central and Eastern Europe: Impact of Food Retail Investments on the Food Chain
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Recent studies have shown a dramatic rise of supermarkets in several developing regions around the world in only the past decade (Reardon and Berdegué, 2002; Reardon et al., 2003). The studies show that the rise of supermarkets have had a profound effect on agrifood systems via several important changes in the organisation and institutions of the food system, including centralisation of procurement from farmers, decline of traditional wholesale systems, and the rise of demanding private standard s for product quality and safety. The supply-side implications of these changes are emerging: the changes have taken a great toll on smaller and under-capitalised producers unable to meet the new requirements, with a resulting exclusion of many small producers, in addition to the creation of new local dynamic markets for local farmers (Reardon and Berdegué, 2002).