Table V

Findings on bargaining/market power and link to firm performance

QuestionFirm codeExcerpts of data on bargaining/market power of the companies
Do you think the strength of your bargaining/market power has a role in the SC transaction and performance?Firm 1We don’t have any market power in the meat industry. We got no control or influence over the price. You had to sell your cattle, because of the stocking. You have the stock; butchers know it, abattoirs know it, and so they determine the price (Meat producer)
 Firm 2They [buyer] use all sorts of excuses, quality, too much produce around, loss of market because they buy and they have the market to sell. We the farmers are losing. We are price takers; we take whatever price […] it’s very tough to make a good relationship when they make a better bargain, and it is inappropriate for us (Vegetables producer)
 Firm 3A lot of them won’t write a contract for a particular time of the year because they know you have to sell your cattle, they know you can’t hang on to your cattle. So they say we will pay you less. And we can’t wait as price taker because the product may go over certain weight, certain grade and specification (Producer)
 Firm 4We are all very significant business for each supplier. We are very fortunate that we do have bargaining power, that’s what comes to standard, can we offer value? And we can, because we have a large market share, and we can sell a lot of stock for the supplier. So I find it works in our relationship ((Wholesaler/retailer)
 Firm 6Market share is the main issue where we always work very close to making sure that we are maintaining it and growing It. It is a value that helps us get bargains with the buyers. Based on our sales data we can ask our retailers for more shelf space to display our products (Processor)
 Firm 8We negotiate the price week to week; we do re-negotiate day to day […] you know things can change, for example, when stocks are coming for the following week, and we find that there are a lot more available, we re-negotiate sometimes. Sometimes we find we are in short of supply, and we re-negotiate there as well, so it’s pretty loosely based on market value (Supermarket retailer)

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