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Local food and short food supply chains are in the centre of attention among consumers, NGOs as well as policy makers. These systems have long tradition the US and Western Europe; they have been spreading in Hungary, too. The main purpose of this study is to review the international literature on short food supply chains and their impacts, and to generally display and discuss the lessons learnt about types that have already appeared in Hungary. The term short food supply chain (SFSC) covers a broad range of marketing channels. In general, small geographical, social, cultural distance between producers and consumers is typical, and also, demand for environmentally friendly production methods is often an important aspect. Consumers of SFSCs are usually more highly educated than the average. Traditional forms such as farmers' markets are typically visited by elder people; while novel, unusual types (like community supported agriculture or web-based value chains) attract the young. As for the producers' side, a characteristic group of farmers participate (especially in case of non-traditional SFSCs) who are innovative, open to the new marketing methods and also have good practical skills (and courage). SFSCs are expected to solve several sustainability-related problems; however, it is not always possible to provide clear scientific evidence about their positive environmental, social or economic impact. In some cases the traditional food supply chains may prove to be more rational (cheaper, environmentally more beneficial). To summarize, due to the heterogeneity and context-dependency of SFSCs, there is probably no generally preferable "good" or "worthy for supporting" solution, but the current situation and local environment should be carefully evaluated.

The paper analyses small and medium firms' perceptions on contract enforcement along food chain in central region of Hungary using survey data. We find that 59 per cent of respondents believe that they could use court to enforce contracts with their partner. However we do not find significant differences along food chain. Our estimations suggest that contractual specificity and firm attributes, external linkages, efficiency of legal systems factors, buyer and seller specifc factors significantly influence the opinion on contract enforcement. Interestingly, the impact of branch specific characteristics has, no impacts. Acceptance of financial loss can be explained by contractual specificity, external linkages, efficiency of legal systems. Buyer, seller and industry characteristics has not played role in the explanation of financial losses.

The majority of the small-scale fruit and vegetable producers due to their small sizes are not able to meet the requirements of the large commercial chains by themselves. Only the cooperation could bring an effective solution. The POs are able to concentrate the scatteredsmall-scale commercial production and to supply as well as to homogenise all these. Furthermore, they are capable to provide activities, which a small-scale producer would not be able to undertake by itself. POs are the organisations which can become successful suppliers and due to their strong bargaining power also partners of the large commercial chains. The great number of small-scale producers can primarily become suppliers if they join these organisations. The POs are not yet frequent in the Hungarian fruit and vegetable sector; therefore, they do not play such a role in supplying to the large commercial chains as in the other Member States of the European Union. This is the fundamental reason of the difficulties encountered by the small-scale producers in supplying. The main reason of the difficulties between the successful Member States and Hungary is the significant share of the grey economy. On the one hand, it does not encourage the small-scale producers and on the other hand, it withdraws a large volume of goods from the legal sales channels through the POs.

It is a general tendency among the Hungarian fruit and vegetable producers to claim of the supermarket retail chains. However, hardly any mention is made of the successful small-scale producers, which are able to become direct suppliers. What are their characteristics, what are their individual features, what is their business philosophy? What are the reasons of their success, how are they different from those producers which are not able to supply? How do they try to solve the problems? The first part of the publication deals with these questions. In the second part the Spanish production, sale system is presented, which is totally different from the Hungarian one and which is successful both on the domestic and foreign markets. In the Annex the comparison of the concentration of the Hungarian fruit and vegetable production and that of the retail food stores is given.