IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

A Conceptual Analysis of Relational Contracts in Agribusiness Supply Chains: The Case of the Sugar Industry in Swaziland

Listed author(s):
  • Masuku, Micah B.
  • Kirsten, Johann F.
  • Owen, R.

This study examines the nature of the relationship between cane growers and millers and how it affects cane growersÂ’ perceptions of the value added in the sugar supply chain. Drawing from relational exchange theory, the study utilised the perceptions of 124 smallholder cane growers in the Swaziland sugar industry. Factors measured in terms of a likert type scale were used to measure each relational construct within the miller-grower contract relationship. The unpacks the trust relationship between large agribusiness companies and smallholder out growers, and shows that relationships characterised by social factors like trust, commitment, and cooperation enhance mutual benefit and quality relationships between parties. This study found that farmers perceive an element of opportunistic behaviour and a lack of cooperation by millers and therefore have limited trust in the millers. Consequently it was also found that satisfaction by cane growers on their relationship with millers has a positive relationship with their level of trust, level of commitment, relative dependence, perception of opportunistic behaviour by millers and perceived cooperation between themselves and the millers. The results point to a number of aspects both growers and millers need to attend to which could contribute to improved relationship and in turn efficiency and returns in the sugar industry in Swaziland.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Article provided by Agricultural Economics Association of South Africa (AEASA) in its journal Agrekon.

Volume (Year): 46 (2007)
Issue (Month): 1 (March)

in new window

Handle: RePEc:ags:agreko:10132
Contact details of provider: Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ags:agreko:10132. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.