engleski

Distributivni centar za voće i povrće ltd as an example of a successful partnership in the fruit and vegetable supply chain

In order to maintain and increase the competitiveness of small producers, Zagreb County has successfully established a Distribution Centre for Fruit and Vegetables (DCVP) in cooperation with the city of Velika Gorica and the agricultural cooperative Zagrebački Voćnjaci. Registered as a limited liability company, the centre provides long-term product storage, product preparation for the market and sales management. Despite a small share of ownership and management of this distribution company, fruit and vegetable producers benefit from increased sales security, extended sales periods and secure collection. DCVP assures customers of higher product quality, which, combined with the extended selling period, leads to an increase in the selling price. Over the period 2009-2019, DCVP manages to steadily increase its total assets by keeping its gearing ratio below 50%. DCVP reduces the number of days to collect receivables and the number of days to pay suppliers, i.e. farmers. During the observed period, satisfactory liquidity level is achieved but the profitability of the centre is low. The average ROA during 2015-2019 is 0.07%, but it should be emphasized that the basic objective of this institution is not to maximize profits, but to ensure a better position of small producers of fruits and vegetables in the market. The results of the interviews conducted show a high level of satisfaction of the co-owners and the management with the achievements of the centre so far. Based on the results, we conclude that the DCVP is a good example for future public-private cooperation projects aimed at increasing the competitiveness of domestic fruit and vegetable producers. The main recommendation for future projects is to try to involve producers more in the decision-making process and to develop accompanying activities with the aim of training of farmers in new technologies and strengthening farmers' cooperation.

distribution, public-private partnership, fruit, vegetables, Zagreb County

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