Wholesale marketing of food

Food reaches the consumer by a complex network, involving production, assembly, sorting, packing, reassembly, distribution and retail stages.

For example, New Delhi serves as a distribution centre to the south of India for apples grown in the Himalayan foothills.

Traditionally, wholesale markets were built adjacent to city centres, located at a focal point of the inter-city transport facilities and close to the main retailing areas.

Population growth, changes in urban land-use patterns and the development of modern transport systems have all influenced the suitability and functionality of existing sites.

The wholesaler may also perform storage and warehousing functions, as well as allowing economies of scale to be obtained in the transportation of produce from farm to market.

The people involved in wholesaling can act simply as merchants, buying and selling produce, can be brokers dealing in orders rather than goods, or can be commission agents.

Direct links are created between producers and supermarket chains, often by means of contract farming arrangements or through the use of preferred suppliers.