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Exploring Supplier-Manufacturer Relationships in the Specialty Food Sector

Author

Listed:
  • Hardesty, Shermain
  • King, Robert P.
  • Feenstra, Gail
  • Houston, Laurie
  • Joannides, Jan
  • Lev, Larry

Abstract

We use results from a survey of specialty food manufacturers to examine how supplier– manufacturer relationships vary in the specialty food sector. While diverse mechanisms govern relationships between manufacturers and suppliers, relational contracts (longstanding, informal commitments) are the most common governance structure in our sample overall, particularly for medium-sized manufacturers. Vertical integration with the principal supplier is most common for smaller manufacturers, who also are most likely to use open market purchases. The largest manufacturers are significantly more likely to use formal contracts. Nearly half of manufacturers in our sample, regardless of their size, purchase directly from farms.

Suggested Citation

  • Hardesty, Shermain & King, Robert P. & Feenstra, Gail & Houston, Laurie & Joannides, Jan & Lev, Larry, 2018. "Exploring Supplier-Manufacturer Relationships in the Specialty Food Sector," Journal of Food Distribution Research, Food Distribution Research Society, vol. 49(1), March.
  • Handle: RePEc:ags:jlofdr:274598
    DOI: 10.22004/ag.econ.274598
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    References listed on IDEAS

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    1. King, Robert P. & Lev, Larry & Houston, Laurie & Feenstra, Gail & Hardesty, Shermain & Joannides, Jan, 2017. "A Survey of Specialty Food Manufacturers to Assess Whether They Represent an Attractive Outlet for Small and Medium-size Farmers," Staff Papers 263408, University of Minnesota, Department of Applied Economics.
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