Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5071109 | Food Policy | 2007 | 16 Pages |
Abstract
The industrialization of agriculture and the potential problem of small-scale farmer marginalization calls for a fresh approach to the design of agribusiness supply chain arrangements in developing countries. The objective of the paper is to contribute to a better understanding of institutional arrangements that can promote stable smallholder agribusiness contracting arrangements in a developing country context. A case study approach, incorporating a transaction cost framework, is used to test whether trust can significantly change the contract characteristics of supply. The results suggest that although the presence of trust can influence the contract characteristics of a supply arrangement, it may not be significant because of other factors in a developing country context. Bearing this in mind, a number of institutional arrangements are recommended in order to promote more stable contract conditions.
Keywords
Related Topics
Life Sciences
Agricultural and Biological Sciences
Food Science
Authors
Kurt Sartorius, Johann Kirsten,