Concentration and inter‐firm co‐operation within the Dutch potato supply chain

Abstract

The Dutch potato sector went through a process of considerable concentration during the past two decades. The number of firms decreased substantially while production levels increased. The process of restructuring was triggered by a combination of shifting consumer demands, internationalisation of markets, and concentration among food retailers. Many potato firms were unable to adjust to these developments and found themselves either for sale or bankrupt. Others engaged in mergers or strategic alliances to meet the changing demands. The resulting concentration process led to higher levels of both vertical and horizontal interdependence between the remaining firms. The rules of competition have changed: opposed to competing individually, successful potato firms achieve substantial competitive advantages through co‐operative inter‐firm arrangements that gain access to high‐quality raw materials, production capacity, and large customers. Consequently, managing inter‐firm co‐operation has become a strategic issue for firms in the potato supply chain.

Citation

Rademakers, M.F.L. and McKnight, P.J. (1998), "Concentration and inter‐firm co‐operation within the Dutch potato supply chain", Supply Chain Management, Vol. 3 No. 4, pp. 203-213. https://doi.org/10.1108/13598549810244287