Table VII

Findings on the relationship issues and link to firm performance

QuestionFirm codeExcerpts of data on trust
What is the role of trust in SC?Firm 2Trust is finish. We don’t believe in trust; we need a contract with our partners to ensure the price (Vegetables producer)
 Firm 5I think trust is about 50 per cent of the right issue because when it comes to a dollar, things get tight, trust gets out of the door, and in reality, it can’t hit the relationship when all the parties share the risk (Processor)
 Firm 6It would not come in handy to have a contract in place, obviously have we ongoing trusted relationship with our growers (Processor)
 Firm 8The majority of the stuff are written in trading terms. All the legal stuff are written, all the stuff relating to money. But then, apparently, you are dealing with these people week to week, their plan and promotions and like that, you don’t write everything (Supermarket retailer)
What do you think about the symmetry in a transaction?Firm codeExcerpts of data on symmetry in the relationships
 Firm 1For a successful relationship, the producer and processor have to share in the fluctuation of market […] the risk should be shared, so should the price. If I am the processor and offered you a price, but if the auction market exceeds that price I will pay you half the difference. If it drops, you pay me half my difference. That’s reasonable, common with the approach of some larger companies (Producer)
 Firm 2Don’t expect the farmers to continually the price takers; they have to share the risk between the two (Producer)
 Firm 5The relationship should emphasise getting highs and lows equally in the marketplace. It means the farmers or producers, the processors and the feed mills if they all share the risk of supplying the product that will surely impact on a sustainable performance (Processor)
 Firm 8There is a lot of cost on this side of business what the supplier can’t cover sometimes, and for them, if they don’t have long-term dealings and benefits with someone fairly stable […] they may have difficulty (Supermarket Retailer)

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