Abstract:

Fresh produce supply chains differ from many other supply chains in terms of the perishability of a product, short shelf life, seasonability, long production process, physical specialties etc. as well as a large number of intermediaries involved. Stated specifications of a fresh produce supply chain are also interrelated with the factors that have a direct impact on price levels. Involvement of many actors within these supply chains as well as their changing needs and expectations may result in the emergence of possible conflicts and issues related to power. Although there is an increasing interest in fresh produce supply chains in the recent literature, studies that focus on the changing price mechanisms from the perspectives of various actors, especially in Turkey, are limited.  Hence, this study aims to review the basic price changing mechanisms and identify the main problems experienced by various actors involved in fresh produce supply chains through the application of the distribution channel theory and the power-conflict theory. Interviews were conducted with various members of fresh produce supply chains in Izmir, Turkey and a qualitative analysis software (Nvivo) was used for content analysis and interviews were interpreted. Findings highlight the power relations and conflict factors between the fresh produce supply chain members. Although there are various factors which cause price fluctuations as cited in the literature, power and conflict factors cannot be neglected. Interview results show that the weakest members in fresh produce supply chain are the producers, who have no right to determine the price levels due to their unorganized structure. Merchants, wholesale market commissioners (WMC), industrial buyers and retailers gain dominance in fresh produce supply chain for the reasons of paying in advance, providing vast amount of quantity orders and incentives, concerns of producers regarding no purchase decisions, cash money requirements of producers, and claim of selling crops faster due to product characteristics. A conceptual framework is presented in order to reveal the main links between the actors and the related dimensions in fresh produce supply chains. 

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