Case study of the vertical integration and quality management of fresh vegetable production

In Hungary, integrating organizations were set up in the field of horticulture. They are playing a role in concentrating production, processing and marketing products. By their size, they are capable of following changes in customers demands and coping with factors influencing value judgement ( market requirements). „ARPAD” Agricultural Share Company has a decisive role employing gardeners from „Szentes” and environs, in shaping the levels of their income and ultimately in marketing. From this network of relations it becomes obvious that the share company controls a well-organized supplying chain, which, stepping out of their own region is growing to considerable size through national and multinational chain stores. Nowadays the company is linked with almost 3 000 subcontractors, who are producing green pepper in heated and unheated greenhouses (plastic covered). Through bed plant production initiated by the company, uniform variety policy has been achieved, which results in higher and higher quality products on the market. As a result of co-ordinated production, they can offer their plants to their partners throughout the year and in the first-fruits season their role is decisive on the market. To make this work, the system should have fixed rules – a kind of frame, which is provided by HACCP and ISO 9000 quality assurance system. Determining the critical points not only in production but in storing and transportation as well is typical of producing fresh foodstuff. Similarly, identification and tracing, furthermore programming transport are also criteria to be ensured. The system is linked with EFQM ( European Foundation for Quality Management) through utilizing „Top quality” model, of which, self- estimation is one of the most important parts. Our paper is trying to make you familiar with the internal and external system of supplying link and would also like to show how Quality Assurance works.