Building Long-Term Buyer-Seller Relationships in Food Chains

Building on the extent literature of buyer-seller relationships, we develop a model that describes the relationship building process. Starting from the suppliers offer quality, we demonstrate how relational satisfaction leads to trust and the customers desire to maintain the relationship. These variables are examined in relation to the situational factors (dependence and the exchange partners willingness to make idiosyncratic investments).Industrial Organization,

PRICE-QUALITY RELATIONSHIPS IN THE FRESH PRODUCE INDUSTRY IN BALI

As the number of tourist arrivals in Bali (Indonesia) continues to increase, a greater number of opportunities are emerging for local farmers to expand production to meet the increasing demand for food. While there are various production and marketing constraints which limit the ability of small farmers to individually meet the hotels quality specifications, this paper demonstrates how collector agents and distributors are able to assemble sufficient produce to meet the quality specifications imposed by the high class hotels. Intense competition between the many distributors for a share of the hotels patronage has resulted in a significant reduction in price, so much so, that the second grade produce which fails to meet the specifications of the high class hotels, often achieves a higher price in the wet market. Consequently, the small, lower class hotels, who purchase the majority of fresh produce they require from the wet market, experience much greater problems with both variable product quality and price. Not unexpectedly, under the current system of marketing, there are no financial incentives to encourage local farmers to improve product quality.Demand and Price Analysis,

Barriers and benefits to the adoption of a third party certified food safety management system in the food processing sector in Shanghai, China

Despite the recent passing of legislation by the National People's Congress of China in 2009, many food businesses in China have yet to implement a third party certified food safety management system (FSMS). While the extent literature identifies a number of internal and external barriers and benefits, the extent to which these impact on the business is thought to be dependent upon how much progress the firm has made on its journey towards quality assurance and the environment within which the firm operates. To test this proposition, the barriers and the benefits accrued from the implementation of a third party certified FSMS were explored by segregating the participating firms into three distinct groups; (i) those that have yet to implement a third party certified FSMS; (ii) those that were in the process of adopting a third party certified FSMS; and (iii) those that were already operating under a third party certified FSMS. Contrary to expectations, in what is a highly competitive market, those firms which were operating under a third party certified FSMS were more likely to question the benefits they had derived than those firms that were either in the process of adoption or had chosen not to adopt a third party certified FSMS. Irrespective of the stage of adoption, the major constraint to the implementation of a third party certified FSMS was the need for the organisation to focus on more immediate issues and the lack of any strategic long-term planning

Who backs up credence claims?: Roles for government as a competent authority in assuring quality attributes

The role of government and intergovernmental mechanisms to assure food safety is well established. However, government also has a role in establishing and verifying a range of acceptable production approaches and consequential outcomes relating to credence attributes. The role of government in providing baseline information on the supply side and competent inspection services to verify the effectiveness of control measures at the production and processing levels of the value chain is identified. A meta-accreditation process, whereby government endorses various food safety and quality certification schemes that are coupled with credence attribute assurances is the most cost effective mechanism for government to pursue

Exploring the institutional market for fresh vegetables in the Southern Philippines

Given the many different ways the product may be used, the institutional market for fresh vegetables in the Southern Philippines can be segmented on the basis of the role market intermediaries perform in the supply chain, where they are, what customers they serve, the range of products required, the volume of product required and the quality specifications. Potential market opportunities are identified and the various constraints smallholder farmers face in endeavouring to meet the needs of institutional buyers are highlighted

Socio-economic impact of cluster marketing: The case of Ned Landcare Association sweet pepper cluster

Through clustering, opportunities exist for smallholder farmers to organize their output and to sell directly to institutional markets. This paper analyses the experiences of the cluster marketing approach in Barangay Ned, Lake Sebu, South Cotabato. The case demonstrates how farmers in the cluster group developed an enterprise plan, established linkages with a microfinance institution and negotiated sales to downstream market intermediaries. Farmers in the cluster increased their technical and marketing knowledge, improved their farming and marketing practices, improved their access to capital and increased their income. Trust, confidence, commitment and unity among cluster members were established through the cluster marketing approach

Leadership Perceptions in Collaborative Marketing Groups: Cases from the Southern Philippines

Numerous smallholder vegetable farmers in the Southern Philippines have been organized into clusters or collaborative marketing groups. The purpose of these clusters is to gain production, marketing and capacity building support, consolidate produce for higher value markets, deliver in bulk to save on transport and transaction costs, and to increase household income. One of the factors influencing the ability of the clusters to achieve these goals is leadership. Using the case study method, this study looks at the leadership traits of cluster leaders in Bukidnon, South Cotabato and Davao City. A total of 35 smallholder farmers from the three areas were interviewed using a structured questionnaire. The research showed that the clusters have trusted leaders. The members have high regard towards their leaders. Their definition of an ideal leader fits the description of their current leaders. The members also trust their leaders to represent them in transactions and meetings

Experiences with the Catholic Relief Services' clustering process for agroenterprise development and some suggestions for improvement

An evaluation of the Catholic Relief Services’ (CRS) eight-step clustering approach to agroenterprise development was a key focus of the Australian Centre for International Agricultural Research (ACIAR) – Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (PCAARRD) horticulture project on ‘Enhancing the profitability of selected vegetable value chains in the southern Philippines’. The CRS approach encourages farmers to form small, collaborative marketing groups (clusters) and to facilitate the sustainable development of these clusters. The research, which used participative action learning and action research processes, identified that an enhanced clustering approach should incorporate processes that overcome issues such as: input financing arrangements to replace loans from informal moneylenders and traders; risks associated with production failures and pest and disease problems; maintaining relationships with buyers; and building group resilience and independence so that donor agencies have an exit strategy. The research findings suggest that to enhance the sustainability of the clusters the CRS eight-step process should be applied to three phases: (i) establishment, (ii) building resilience and (iii) implementing an exit strategy