Niche-Regime Contractual Arrangements as Drivers of Agri-Food Transitions: Insights from the French Dairy System

The economic literature views contractual arrangements as essential tools for securing supply chain and managing risk within agri-food value chain. Recent research, combined with insights from transition studies, has advanced the idea that they can also serve as instruments for developing new, more sustainable value chains. In the context of agri-food systems transitions, this requires rethinking contractual arrangements between producers, processors, and retailers. This paper introduces what we call Niche-Regime Contractual Arrangements (NiReCa), defined as adaptive coordination mechanisms structuring interactions between niche-innovations (farmer-led initiatives) and regime (incumbent dairies). Drawing on Multi-Level Perspective (MLP) and New Institutional Economics (NIE) -particularly Transaction Cost Economics (TCE) -we propose a three-phase analytical framework: (1) the emergence of niche-innovations, shaped by sustainability ambitions and internal coordination mechanisms;(2) the evolution of NiReCa patterns; and (3) the institutionalisation of NiReCa and their role in reshaping the architecture of agri-food systems through empowerment dynamics.Empirically, using a qualitative methodology, the study draws on seven cases to analyse crosscase patterns. The findings highlight three major dynamics: (1) dairy farmers-led nicheinnovations leverage regional branding and innovative contractual arrangements to regain economic agency; (2) tensions between farmer-led niche-innovations and incumbent dairies require flexible strategies, including informal agreements and strategic alliances; (3) small and medium-sized enterprises (SMEs) play a key role in supporting dairy system transitions by facilitating news projects and offering alternative enabling transitions by offering alternative processing and market access. NiReCa are not merely tools for securing fairer remunerationthey are fundamental drivers of structural change. By enabling coordination between diverse actors, they foster contractual innovations that balance economic resilience with sustainability goals. These findings contribute to agri-food economics by showing how contractual adaptations mediate structural transformations in food systems.