Food Wholesale and Distribution – their Significance in Food Supply

1. Food Wholesale and Distribution – Their Significance In Food Supply Summary:The importance of food wholesalers and distributors is ever- increasing due to the extension of the markets and consumer base of food. The convenience that these intermediaries allow to the producers and retailers, make them almost indispensable for the markets. The role of wholesalers and distributors has reached a new height with the expansion of retail all over the world. The reach of the food manufacturers is limited due to their remote living and incessant engagement into raising food crops and related products. The manufacturers, wholesalers, and distributors are the most crucial elements of the food supply chain. The pause in their operations may cause dearth of food for the consumers and hence understanding their role is important. It is the food wholesalers in Toronto that help retailers to stock various goods and cater to the purchasing needs of millions of consumers. The wholesalers and the distributors basically act as intermediaries and add value to thefood supply system. 1

2. Food Wholesale and Distribution – Their Significance In Food Supply Who are the Food Wholesalers and Distributors? The food wholesalers are the middlemen, who purchase food in bulk and resell them to the retailers or shop owners. It is the latter, who are responsible for supplying the products, both finished and semi-finished, to the end-consumers ultimately. The wholesalers acquire purchases from farmers, manufacturers and vendors mostly. The groceries of industrial scale that sell their products to the hotels and restaurants, or the manufacturers that sell their products themselves are also termed as wholesalers. The dimension of all the wholesalers is not the same and they vary with industry and market size. The distributors too have a similar role to play as the food wholesalers in Toronto in terms of playing the link. They have, however, multiple attributes to their functioning and hence they are much more important in a way. A food distributor may be the deliverer of products to the wholesalers and food businesses. Distributors may also be the wholesalers, who deal in non-competing food products, i.e., they do not sell rival brands simultaneously for a particular product. Since distributors are backed directly by the producers most of the times, they offer better standards of products to the buyers. The Advantages The most important benefit of interplaying of distributors and food wholesalers in Toronto is reflected in the operations of the retailers and eateries. These entities, who sell their goods to the individual consumers, are saved from the difficulties of connecting with several vendors. The food wholesalers and distributors are responsible for integrating the logistics of food products at various levels. 2

3. Food Wholesale and Distribution – Their Significance In Food Supply Moreover, the networking of wholesalers and distributors help in supplying the substitutes of certain food items during the lack of their availability in the market. The time and money of various business owners are saved due to the activities of these intermediaries, who eliminate the need of multiple pickups and deliveries of goods. The Challenges A number of challenges work against the smooth operations of the wholesalers and distributors and the most important one is of distribution of perishable products. It becomes difficult for the middlemen to manage the timely supply of perishable products to the respective retailers while their freshness remains intact. The barrier can be removed with proper infrastructure that will prevent the food spoiling before they reach the consumers. Another problem is the shying away of retailers from the food wholesalers and distributors due to the popularity of some indigenous food products. 3