Box 3 Case C

Vertical coordination

Specialised wholesaler 2 has a contract with a PO1 regarding the supply of vegetables to modern retail markets. Wholesaler 2 sets the intrinsic quality requirements that PO1 must comply with. To achieve the quality standards, wholesaler 2 uses sorting to monitor vegetables on the basis of intrinsic requirements, such as appearance, size, colour and shape. Wholesaler 2 provides no support to PO1 in terms of farming inputs, knowledge or technical assistance.

Horizontal coordination

The PO1 provides services to its members by sharing knowledge and providing technical assistance regarding production. In addition, PO1 holds regular meetings with its members to share information about quality requirements and to arrange logistics and procurement processes that will help contractual requirements to be met.

Quality performance

Vegetables produced by smallholders meet intrinsic quality requirements