The future of the horticultural sector in the Lake of Constanze region

Within the framework of an INTERREG Project a study on the horticultural sector in the Lake of Constanze region was carried out. This article deals with the economic effects of an increasingly open market on production and trade. Production was investigated using a linear programming model. One of the main influences on production are the laws regulating the employment of labor in the sector. Direct payments influence labor use and decisions on which products are cultivated. In future retailers will increase their requirements towards supplying firms with regard to supply quantity, quality and services. Deficiencies identified at the wholesale level are high costs, insufficient produce supply, inconsistent quality and incomplete market information. These shortcomings must be dealt with in order to improve market efficiency. To this end, several suggestions are made. These propositions affect the wholesale firm as well as suppliers. Furthermore a stronger cooperation between wholesale traders is recommended.