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To Contract or not Contract: Implications for Farmer–Buyer Trading Relation Performance

Author

Listed:
  • Remzi Keco
  • Orjon Xhoxhi
  • Engjell Skreli
  • Drini Imami

Abstract

The paper analyses the value chain coordination of greenhouse vegetables in Albania, which has a strong export orientation. Based on a structured farm survey, the study constributes to the value chain literature of the vertical coordination of agricultural products by addressing the question of how chain governance modes differ in terms of exercised power and farmers’ satisfaction (an indicator of performance) with the trading relationship. The results point out that farmers operating with agreements show higher levels of satisfaction with the trading relationship than do farmers selling on the spot market. On the other hand, those operating with agreements are under higher levels of exercised power over product quality.

Suggested Citation

  • Remzi Keco & Orjon Xhoxhi & Engjell Skreli & Drini Imami, 2019. "To Contract or not Contract: Implications for Farmer–Buyer Trading Relation Performance," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 9(5), April.
    • Handle: RePEc:ags:ijofsd:345318
    DOI: 10.22004/ag.econ.345318
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    References listed on IDEAS

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    1. Miyata, Sachiko & Minot, Nicholas & Hu, Dinghuan, 2009. "Impact of Contract Farming on Income: Linking Small Farmers, Packers, and Supermarkets in China," World Development, Elsevier, vol. 37(11), pages 1781-1790, November.
    2. Phil Simmons & Paul Winters & Ian Patrick, 2005. "An analysis of contract farming in East Java, Bali, and Lombok, Indonesia," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 513-525, November.
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