Retailers usually impose strict private quality standards on fresh fruit and vegetable products, mainly focused on cosmetic features. At the supplier level, this generates a stream of suboptimal products that cannot be sold on the fresh market. This article studies the impact of these standards on suppliers by means of a direct quantification conducted in 2023 in the carrot supply chain of an Italian Producer Organisation. 34.64% of the carrots processed in terms of mass is downgraded because of non-compliance with the standards imposed by retailers, while 12.57% is lost at the primary stage due to food safety reasons. Downgrading occurs as a result of cosmetic imperfection (33.28% of mass) or because carrots are out-of-size (66.72%). The downgraded carrots are re-processed for industry, generating an additional loss of 15.27% of mass along the way. The economic loss linked to downgrading would account for 22.05% of potential turnover if no cosmetic quality standards were applied. By modelling a series of hypothetical scenarios, this article discusses the impact on the producer if the private quality standards imposed by retailers were more flexible.
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