Perceptions on the Demand Side and Realities on the Supply Side: a Study of the South African Table Grape Export Industry

This article reports on the mechanisms of business-to-business regulation as governance approach in an agricultural supply chain. The article explores the activities of NGOs, government and business in promoting sustainable production. It focuses on the requirements set for producers in agro-food chains and the effects of NGO perceptions on these issues. The subsequent business standards set by retailers and other market role-players and the responses of producers are reported and the responsibility for achieving desired outputs is discussed. The research methodology included open interviews with various stakeholders in the chain, as well as structured questionnaires to determine practices on farms. From the findings it is clear that perceptions of European stakeholders differ substantially from the reality found in South Africa. This has consequences for producers, from both a social and a financial perspective. Understanding the role and function of NGOs, market roleplayers and national government in the governance of sustainable development in the South African-European table grape supply chain contributes to identifying barriers and opportunities to achieving sustainable practices in global supply chains. Copyright (C) 2009 John Wiley & Sons, Ltd and ERP Environment.