Fresh produce companies are learning about Wal-Mart the hard way last year was a "nightmare" for them as they grappled with retailers anxious to lower prices, says a top food industry trainer.
David Lavelle, head of business strategy of Wye College's food industry management group, says there has never been a more important time for fresh produce companies to adjust their commercial operations to fit the plans of the major retailers.
"Getting prices down at retail without damaging suppliers' margins has been achieved in some fresh produce trading relationships, but none as effectively as with Asda," he says.
As a result, Lavelle has updated the college's strategic management course, affiliated to the University of London, designed for senior managers in fresh produce.
In come an increased consumer focus, tools to respond to a faster trading environment, and information to deal with supplier consolidation and cost reduction. Out goes time the course has been culled from a week to three days.
"This is both a crucial and decisive stage for the fresh produce industry it is crucial because many companies will not survive the next 18 months, certainly not in their current form, and decisive because fresh produce companies will need to get sophisticated skills quickly," says Lavelle.
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