Sustainable confidence in the value chain pig
Quality production and sustainability make a holistic view of value chains required. Only if this work so that they pass reliably and permanently with the product even more information and where necessary "instructions", is made up of individual building blocks, a complete system. As such chains to organize themselves in contracts and in "sustainable" maintained, showing the conditions in six EU countries, the study of Christian FISCHER, Monika HARTMANN, Nikolai REYNOLD, Philip LEAT, César Revoredo-GIHA, Maeve Henchion, Luis Miguel Albisu and Azucena GRACIA (2009): Factors influencing contractual choice and sustainable relationships in European agri-food supply chains.
Whatever type of bond between the partners in a value chain is of particular interest because it is essential when quality and credibility criteria are at stake. These criteria, which can only be determined to a limited extent by the end user, can only be secured if bonds link the upstream and downstream stages.
In international surveys of pork companies (and comparative cereals), the international study examined the factors that determine the selection of a particular contract model and how the long-term nature of such relationships is guaranteed. The authors differentiate between marketing on spot markets, loose ties in informal circumstances and ties through legally binding contracts. However, they also limit the fact that the legal bindingness has its limits in terms of credibility criteria, because the relevant requirements are usually missing.
Regarding the contract type, it can be seen that loose, informal ties predominate far in the examined food chains, but that an increase in legally binding contracts can be expected in the future. Incidentally, fixed contracts are clearly underrepresented in German pork production. This applies very strongly at the farmer-to-processor level (7% vs. 27% for total), the situation between processors and retailers is much more favorable (27% vs. 21% overall).
Incidentally, contrary to expectations, it is not the quality orientation that leads to the conclusion of binding contracts. Rather, greater competition and long-term-oriented managers are the important driving elements. The long-term durability of contracts and informal agreements is unanimously assessed as above-average positive across all countries and examined chains. Within the German pork chain, processors' trust in farmers is significantly greater than in retailers. In most other countries the situation is exactly the opposite.
It was also examined which factors are responsible for the durability of the business relationship. The most important role is played by personal ties, efficient communication and equal rights for the partners.
In short, it is the informal network that has to be formed and in which the partners should be on an equal footing. Trust of the partners and satisfaction with the type of cooperation are the basis. The less binding contractual relationships prove to be more confusing in terms of their determinants than the fixed contracts.
In conclusion, another result of the work is particularly surprising: Today, the stability of supply relationships is no longer determined by legally prescribed or voluntary traceability systems. These are already a firmly established basic requirement that they no longer have an additional beneficial effect on the relationships between business partners. These systems are used for chain control rather than cooperation.
The practical information was published in the newsletter of Fleischforschung Kulmbach (2010) 49, no. 188 - S. 153.
The newsletter is published by the Fördergesellschaft für Fleischforschung in Kulmbach and sent to the members free of charge. The Fördergesellschaft uses considerable funds that are used for the research work of the Max Rubner Institute (MRI), Kulmbach site.
Members can also read the original article online.
More details at www.fgbaff.de
Source: Kulmbach [Branscheid - MRI]
