Wholesale marketing occurs when a producer of a good sells it to an individual or company that intends to resell it, usually under a different brand name and at a greater price.
Many local farmers and mid-sized agricultural producers participate in whole-sale marketing, producing crops and selling them to a number of buyers that may represent local or large grocery chains, who then resell those crops to their own customers. Unless they manufacture their own goods, retailers are dependent on wholesale marketing.
Wholesale markets significantly improve the efficiency in the distribution of goods, merchandise, and food and encourage competition by creating conditions demanding of transparent and relatively low costs. Access to market information for various entities or companies is also enhanced.
The role of wholesale markets in the food chain is changing from ‘spot wholesale markets’ to ‘dedicated wholesalers’.
Spot markets are the traditional wholesale markets where spontaneous supply and demand comes together, where commodities are bought and sold for cash and delivered immediately.
Wholesale infrastructures have been built in all countries, along with municipal rules and fees. Dedicated wholesalers work (exclusively) for large supermarket chains. They can be seen as an extension of the supermarket procurement system. The speed of change per country depends on the roll out speed of the chains of hypermarkets, discounters, and supermarkets.
Related meetings and workshops
Regional Wholesale Market Training in Ukraine, June-November, 2007CEI & KEP Fund Ukrainian Wholesale Market Study Tours, Italy & Poland, June 2006Investing in Fresh Produce Wholesale Markets, Kiev, October 2005CEI Wholesale Markets Foundation Study Tour, Italy, June 2005
Ukraine: wholesale markets training at regional level, September 2010Croatia's Agrokor To Invest 40 Mln Euro in Wholesale Market in Macedonia, February 2008CEI Support to Wholesale Markets Development in Ukraine, June 2006Investing in Fresh Produce Wholesale Markets, Kyiv, October 2005CEI Wholesale Markets Foundation Italy Study Tour, July 2005