Policy, economic, and industry repercussions of current e-business diffusion rate In European food industry

European policy is focussed on promoting the business techniques and new ways of working which will provide the economic and social foundation of the information society in Europe. To help policy makers define their programmes, and to monitor the effectiveness of these policies, it is essential to examine progress as well as identify areas requiring active support. This study examined the repercussions of e-business progress in the food sector based on the findings of a large quantitative survey that investigated the extent, scope, nature of and factors affecting the speed of e-business development in Europe for the Food, beverages and tobacco sector. For this purpose a pan European survey was conducted by EU market observatory called “European e-Business Market Watch” during the period February and March 2003. This study is based on the findings and reports of “European e-Business Market Watch” which can be accessed in the Internet (www.e-businesswatch.org). This study discusses the economic implications for the individual enterprise, the industry structure as well as policy issues such as quality assurance, promotion of ICT education, training and “cultural” change. Regarding economic implications, e-business has played a indirect role because it has significantly involved only in Large Scale Enterprises which proportionally are a small percentage in food industry. For SMEs, the impact of e-business was mainly to the ICT facilities currently at their disposal: websites, the Internet, and e-mail. Regarding industry implications, e-business has not led to significant structural changes, but it has steamed up certain processes. E-business has armoured supply chain management with advanced but sophisticated network technologies. Regarding policy issues, an e-business solution capable of guaranteeing food safety to consumers and vertically integrating business operations across the supply chain would have a good chance of extraordinary diffusion in the food industry.