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The system of distributing fresh fruit and vegetables in Canada has changed over the years such that the traditional channels overlap considerably. The key factors contributing to these changes are:
The North American Free Trade Agreement (NAFTA)
Increased consumer demand for fresh fruit and vegetables
Technology (global sourcing a reality)
According to Christian Bourbonnière, Vice-President, Fruits and Vegetables, for Metro-Richelieu Grocers of Montreal, “Produce buyers have never had it so good. Mr. Bourbonniere says that product quality has never been better, distribution channels are faster and more efficient than ever before and the number of fruit and vegetable SKU’s is skyrocketing, as is the number of countries Canada imports from.
James Milne, marketing director of the David Oppenheimer Group of Vancouver, British Columbia, a company that sources produce for major Canadian retailers, feels that the changes in the fresh produce market are creating new challenges for middlemen, as grocers ponder increasing direct contact with growers and buying through large contracts. Wholesalers and middlemen have to add value. Otherwise there is no reason for them. www.oppyproduce.com
The present distribution system of the Canadian Produce Market is illustrated6 in the following diagram:
Canadian Produce Marketing System
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