ABSTRACT
ALTHOUGH the phrase food supply chain has been widely used, there is no accurate definition of the term. In this introductory chapter an approach will be used that contains two primary elements. It uses a consumer-oriented approach and focuses on product flows between companies in a specific supply chain. Traditionally, food supply chains have been characterized by two distinct features (Jongen, 1996): 1. One-way communication through the chain from producers of raw
materials and/or primary products to the users of end-products 2. A poor understanding of the concept of product quality, which is still
predominantly based on technical criteria and producer-focus particularly with respect to costs and productivity In a growing market as experienced for some decades in most West-
European countries, this approach has been very successful. However, in the last decade the market situation has changed dramatically. In addition to market saturation resulting from steadily increasing production levels, other developments have had a large influence on the market. For example, the size of the market is limited by the reduction in the rate of population growth, and, in a number of countries, the saturation point for caloric intake has been reached. Other important changes include de-
mographic shifts toward an aging population and major changes in household composition (Meulenberg and Viaene, 1998).
