PRODUCER SEGMENTATION AND THE ROLE OF LONG-TERM RELATIONSHIP IN MALAYSIA’S MILK SUPPLY CHAINS

Research on buyer-seller relationships in the agricultural sector receives little attention. A growing body of evidence suggests that strong buyer-seller relationships facilitate more efficient supply chains. The long term relationship literature tends to treat suppliers as a homogenous group when attempting to identify motivations, strategies and incentives to enhance the quality of buyer-seller relationships. This article explores the role of long-term relationships between buyers and sellers in Malaysia’s dairy industry, taking into consideration the heterogeneous nature of the producers. Interviews with 133 producers provide the data for this study. Cluster analysis suggests two well-defined groups differing in terms of demographic characteristics and relationship perceptions toward their buyers. Based on the results, the study proposes some policy implication and marketing strategies for both milk buyers and government.buyer-seller relationship, price satisfaction dimensions, cluster analysis, dairy industry, Malaysia, Marketing,

Relationship quality as the predictor of long term relationship in the Malaysian dairy industry

Dairy market in Malaysia has been increasing due to high income and population growth in the region. In response to the increasing demand, milk processors need to obtain constant milk supplies from the dairy farmers. One way of doing this is when the buyers and the sellers build and maintain quality relationships in order to enhance long term sustainability of the milk supply. This paper examines the determinants of relationship quality and its role in enhancing long term relationship between the Malaysian milk processors and dairy farmers. The study revealed that where as mutuality and price satisfaction influence the perceived relationship quality of the farmers positively; dependency and price flexibility do not. Furthermore, the perceived relationship quality of the farmers has a positive influence on long term orientation of the relationship.Long term relationships, Relationship Quality, Dairy Industry, Malaysia

Dairy cattle management: survey on dairy cattle lactation trend in Sabah

A survey was conducted to obtain information on Sabah dairy cattle lactation length and lactation yield to identify the lactation trend. In the study, 18 farms with 2 types of husbandry practice namely feedlot and grazing were visited. Dairy livestock has became established part of the livestock industry with Friesian-Sahiwal crossbreed, imported from Australia and New Zealand with heredity of 62.5% Friesian 37.5% Sahiwal and 50% Friesian 50% Sahiwal respectively.Local born cattle are referred as Sabah Sahiwal Friesian (SSF). All the cows are milked twice a day. From the results obtained, the average lactation of dairy cow is around 6 liters to 12 liters per day with mean of 8.6 liters per day if there is no lactation failure. The mean for cow milked per lactation is 278 days of length and the mean for total milk yield per lactation is 2489 liters. Incidence of lactation failure happens in certain farm that had just received new imported cows, or happens in individual cow in the herd of lactating cows. The information of the survey has been obtained from selected farmers. Therefore the reliability of the data on certain aspects of dairy livestock was based on experience of farmers who provide the information.dairy cattle, Friesian-Sahiwal, lactation length, lactation yield

Building producer loyalty in Malaysia's fresh milk supply chain

The paper presents results from a survey of 133 dairy producers in Malaysia, and identifies how Malaysian milk buyers can build a loyal customer base with their suppliers as a means to secure uninterrupted milk supplies. A structural equation model was conducted to test the conceptual model using AMOS 17.0 software. The results show that whereas timely and collaborative communication, price satisfaction and cultural fit influence positively suppliers’ contractual and competence trust in their buyers, power dependency negatively influences competence trust. Furthermore, suppliers’ trust in their buyers will eventually lead to loyalty. The principal implication is that milk processors and other buyers need to engage in collaborative communication with the dairy farmers to ensure continuous and uninterrupted supply.dairy, Malaysia, customer base, competence trust, suppliers trust, collaborative communication, Agribusiness, Agricultural and Food Policy, Farm Management, Industrial Organization, Institutional and Behavioral Economics, Marketing, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, Teaching/Communication/Extension/Profession,

Relationship marketing moderating effect on value chain of horticulture produce: an intermediaries perspective

Transformation of Malaysia horticulture industry had detected transition from supply chain to value chain perspective as well as emerging of new type of intermediaries called the packers. However no major changes of marketing activity at farm level and stringent quality requirements at entry level impose by hypermarket, small scale production, coupled with the lack of integration across the value chain and limited compliance to global food safety are highlighted as the challenges in this industry. Intermediation might contribute to the chain deficiency process and actors. Nevertheless, relationship marketing approach had emphasized people as the main dimension on marketing research which may reveal the intangible aspect of the challenges. Therefore this paper proposed the conceptual framework to investigate the moderating effect of relationship marketing towards intermediaries’ roles and functions that contribute to smallholder business performance as well as the firm performance

Dairy cattle management: survey on dairy cattle lactation trend in Sabah

A survey was conducted to obtain information on Sabah dairy cattle lactation length and lactation yield to identify the lactation trend. In the study, 18 farms with 2 types of husbandry practice namely feedlot and grazing were visited. Dairy livestock has became established part of the livestock industry with Friesian Sahiwal crossbreed, imported from Australia and New Zealand with heredity of 62.5% Friesian 37.5% Sahiwal and 50% Friesian 50% Sahiwal respectively. Local born cattle are referred as Sabah Sahiwal Friesian (SSF). All the cows are milked twice a day. From the results obtained, the average lactation of dairy cow is around 6 liters to 12 liters per day with mean of 8.6 liters per day if there is no lactation failure. The mean for cow milked per lactation is 278 days of length and the mean for total milk yield per lactation is 2489 liters. Incidence of lactation failure happens in certain farm that had just received new imported cows, or happens in individual cow in the herd of lactating cows. The information of the survey has been obtained from selected farmers. Therefore the reliability of the data on certain aspects of dairy livestock was based on experience of farmers who provide the information

Relationship quality as the predictor of long term relationship in the Malaysian dairy industry

Dairy market in Malaysia has been increasing due to high income and population growth in the region. In response to the increasing demand, milk processors need to obtain constant milk supplies from the dairy farmers. One way of doing this is when the buyers and the sellers build and maintain quality relationships in order to enhance long term sustainability of the milk supply. This paper examines the determinants of relationship quality and its role in enhancing long term relationship between the Malaysian milk processors and dairy farmers. The study revealed that where as mutuality and price satisfaction influence the perceived relationship quality of the farmers positively; dependency and price flexibility do not. Furthermore, the perceived relationship quality of the farmers has a positive influence on long term orientation of the relationship

Relationship quality as the predictor of long term relationship in the Malaysian dairy industry

Dairy market in Malaysia has been increasing due to high income and population growth in the region. In response to the increasing demand, milk processors need to obtain constant milk supplies from the dairy farmers. One way of doing this is when the buyers and the sellers build and maintain quality relationships in order to enhance long term sustainability of the milk supply. This paper examines the determinants of relationship quality and its role in enhancing long term relationship between the Malaysian milk processors and dairy farmers. The study revealed that where as mutuality and price satisfaction influence the perceived relationship quality of the farmers positively; dependency and price flexibility do not. Furthermore, the perceived relationship quality of the farmers has a positive influence on long term orientation of the relationship

Dairy cattle management: survey on dairy cattle lactation trend in Sabah

A survey was conducted to obtain information on Sabah dairy cattle lactation length and lactation yield to identify the lactation trend. In the study, 18 farms with 2 types of husbandry practice namely feedlot and grazing were visited. Dairy livestock has became established part of the livestock industry with Friesian-Sahiwal crossbreed, imported from Australia and New Zealand with heredity of 62.5% Friesian 37.5% Sahiwal and 50% Friesian 50% Sahiwal respectively.Local born cattle are referred as Sabah Sahiwal Friesian (SSF). All the cows are milked twice a day. From the results obtained, the average lactation of dairy cow is around 6 liters to 12 liters per day with mean of 8.6 liters per day if there is no lactation failure. The mean for cow milked per lactation is 278 days of length and the mean for total milk yield per lactation is 2489 liters. Incidence of lactation failure happens in certain farm that had just received new imported cows, or happens in individual cow in the herd of lactating cows. The information of the survey has been obtained from selected farmers. Therefore the reliability of the data on certain aspects of dairy livestock was based on experience of farmers who provide the information

Dairy cattle management: survey on dairy cattle lactation trend in Sabah

A survey was conducted to obtain information on Sabah dairy cattle lactation length and lactation yield to identify the lactation trend. In the study, 18 farms with 2 types of husbandry practice namely feedlot and grazing were visited. Dairy livestock has became established part of the livestock industry with Friesian-Sahiwal crossbreed, imported from Australia and New Zealand with heredity of 62.5% Friesian 37.5% Sahiwal and 50% Friesian 50% Sahiwal respectively.Local born cattle are referred as Sabah Sahiwal Friesian (SSF). All the cows are milked twice a day. From the results obtained, the average lactation of dairy cow is around 6 liters to 12 liters per day with mean of 8.6 liters per day if there is no lactation failure. The mean for cow milked per lactation is 278 days of length and the mean for total milk yield per lactation is 2489 liters. Incidence of lactation failure happens in certain farm that had just received new imported cows, or happens in individual cow in the herd of lactating cows. The information of the survey has been obtained from selected farmers. Therefore the reliability of the data on certain aspects of dairy livestock was based on experience of farmers who provide the information