Peter J. Batt

Building trust between growers and market agents

In the absence of the auction as the principal mechanism for setting price in the Perth fresh fruit and vegetable market, there is a great deal of distrust between growers and the market agents who receive and distribute their produce. While most growers generally transact with more than one market agent, satisfaction with the exchange builds trust. Trust is facilitated where the grower and the market agent share similar goals. To reinforce trust, growers prefer to transact with those market agents who are prepared to invest in their relationship with the grower. Conversely, the market agents propensity to act opportunistically, to exercise power and to withhold information from the grower will have a significant negative impact on the trust that develops between growers and market agents.

Building trust in agribusiness supply chains: A conceptual model of buyer-seller relationships in the seed potato industry in Asia

ABSTRACT In the absence of a certified seed system, potato farmers in Asia must purchase replacement seed tubers from an informal seed system. With no third party assurance that the seed tubers purchased are of good quality, the farmers decision to purchase seed may be influenced by the long-standing relationships that have been established between buyers and sellers. Trust is the critical determinant of a good buyer-seller relationship. Through maintaining communication and the making of various relationship specific investments, a conceptual model is proposed which suggests that seed suppliers may engage in trust building behavior which should result in the preferred seed supplier enjoying a greater share of the farmers patronage.

Examining the performance of the supply chain for potatoes in the Red River Delta using a pluralistic approach

Using an analysis of marketing margins and the key dimensions of long‐term buyer‐seller relationships, it is possible to demonstrate that the supply chain for potatoes cultivated in the Red River Delta (Vietnam) is surprisingly efficient. While the prices paid to farmers are ultimately determined by supply and demand, the price farmers receive from traders and collector agents is influenced by tuber quality and the costs of transportation. Farmers are seldom dependent on their preferred trading partner and indicate that numerous alternative traders are available to purchase the potatoes they have harvested. While the traders similarly enjoy a strong positive relationship both with farmers and collector agents and their down‐stream customers, wholesalers report that they are much less satisfied in their exchange relationship with both the traders and the retailers. Wholesalers are more dependent on both their up‐stream and down‐stream trading partners and are more dissatisfied and less trusting of their exchange partners.

Review of farmers' markets

Purpose of review: The popularity of farmers’ markets is increasing, yet little is understood about their contribution in developing social or economic benefits for the farmers who use them. This paper reviews the literature on farmers’ markets and the contributions that they make, not only to the rural community but also the urban centres within which they operate, and the various challenges associated with their operation. Main findings: Although there are many advantages of farmers’ markets, the review identifies a clear gap in the research literature relating to the potential impact of farmers’ markets on urban areas and tourism. While most studies have been undertaken in developed countries, research in developing countries is equally if not more important, given the potential role of farmers’ markets in enhancing the economic wellbeing of smallholder producers. Directions for future research: Future research should guide policy makers by providing more evidence on the economic impact of farmers’ markets and the potential for tourism and urban development.

Consumer behaviour towards honey products in Western Australia

Purpose – This paper aims to explore the factors impacting and influencing the consumers decision to purchase honey in a retail store.Design/methodology/approach – Data were collected from shopping mall intercepts in Perth, Western Australia, using a structured questionnaire. Exploratory factor analysis was used to identify the principal constructs which most influence the consumers decision to purchase. On the basis of the ways in which honey was consumed within the household, cluster analysis was utilised to group the respondents into meaningful segments.Findings – In Perth, Western Australia, honey is primarily consumed as a spread or a sweetener on breakfast cereals and porridge. However, honey is also used as a marinade, in cakes and cookies and as a beverage. According to the way in which honey is consumed in the household, five clusters were identified. In purchasing honey from a retail store, exploratory factor analysis revealed three principal constructs which were most influential in the consu...

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.

Strategic lessons to emerge from an analysis of selected flower export nations.

Abstract Using Porters (1990) model of international competitive advantage, the flower export industries in Australia, Colombia, Israel and the Netherlands are examined. The analysis reveals that the basic factors of production are a great deal more important in the evolution of flower export industries than the literature would suggest. However, if the natural resource endowments are to be fully exploited, there is a need for a significant investment in infrastructure. The most significant of these investments is the development of a fully integrated supply chain from the producer to the customer. These infrastructure investments are made more easily where the industry is highly concentrated (clustered), strong, cohesive flower export councils have developed and where government has provided appropriate macro level incentives. However, the most significant role of government is its ability to negotiate and maintain preferential market access. While Porter (1990) maintains that a large and highly sophisticated domestic market is an advantage, in the flower export industry, a strong export culture is more important. With the large amounts of foreign investment being made in the emerging flower export countries, there is evidence to suggest that the double-diamond approach advocated by Rugman (1992) may be more appropriate in an examination of the international competitiveness of flower export nations.

Modelling the Impact of Environmental and Organizational Determinants on Green Supply Chain Innovation and Performance

ABSTRACT Both customers and suppliers are becoming increasingly concerned about environmental issues in modern food chains. A firm’s decision to implement green supply chain management is based on the social objectives of the firm and its management, its desire to pursue corporate social responsibility, its relationships with channel partners, and environmental determinants such as government legislation. The speed at which green supply chain management is implemented within an organization depends on its agility and its ability to facilitate innovation. Innovation may take the form of new product development or new process development, including the introduction of environmental management systems and total quality management in both production and purchasing. This article presents a conceptual model to explain how the various theoretical constructs are related and how innovation effects green supply chain management and performance.

Building Trust in the Filipino Seed Potato Industry

Abstract In the absence of a certified seed system, there is much uncertainty associated with a farmers decision to purchase seed potatoes. To reduce the uncertainty, farmers prefer to purchase seed from those suppliers they feel they can trust. Such suppliers have a good reputation among the other farmers and generally provide the best quality seed. Trusted seed suppliers regularly meet the farmers expectations and are prepared to make significant investments to help the farmer grow potatoes. Conversely, wherever the seed supplier dominates the relationship and whenever farmers believe their seed supplier has acted opportunistically, there is a marked reduction in the level of trust.

Consumer perceptions of food quality in Malaysia

Purpose – The purpose of this paper is to gain an understanding of the quality cues that consumers look for in purchasing fresh meat and fresh fruit and vegetables in Malaysia. Through a perceived quality model, this paper identifies the implicit, intrinsic, extrinsic and credence quality cues consumers’ use in their decision to purchase fresh meat and fresh fruit and vegetables. Design/methodology/approach – This study utilised the shopping mall intercept survey method. Data were collected from traditional markets and modern retail outlets in the Klang Valley region in Malaysia. A structured questionnaire was designed to measure consumer’s perceptions and experiences of food quality when purchasing fresh meat and fresh fruit and vegetables from retail outlets. In this study, univariate data analysis (descriptive analysis, one-way analysis of variance) and exploratory factor analysis were performed to analyse the data sets. Findings – Freshness (intrinsic cue), was the most frequently cited variable when ...