Everywhere the same? Competitiveness of two regional vegetable production clusters in Southern Germany

Abstract

German vegetable production is characterized by its pronounced variety of cultivated vegetable crops. There are also large differences among distinct production regions in terms of climate conditions, farm structures and marketing infrastructure. Two of the most important vegetable production regions in Southern Germany are the so-called ‘Knoblauchsland’ (Garlic Country) in Middle Franconia and the open-field production region in Lower Bavaria. Although these two vegetable production regions are geographically not far apart, they show distinct differences in size of the region, their historical development, and different scope of production. This paper analyzes the competitiveness of the two vegetable production regions following Porter’s definition of industry clusters and his Diamond model. Applying this approach, competitiveness is specified by four bundles of determinants, namely factor conditions, local demand conditions, available supporting industries, and type of rivalry and strategies. The cluster concept emphasizes the importance of the interplay of the different determinant bundles and, in addition to the existing networks and competitiveness, it also helps identify possible options for improvements of the framework conditions. Thus, practical implications have been derived on how cluster stakeholders can mitigate weaknesses such as unfavorable conditions, and further combine their strengths to increase competitiveness in the long term.