A conceptual analysis of relational contracts in agribusiness supply chains: the case of the sugar industry in Swaziland

Abstract

This study examines the nature of the relationship between cane growers and millers and how it affects cane growers' perceptions of the value added in the sugar supply chain. Drawing from relational exchange theory, the study utilized the perceptions of 124 smallholder cane growers in the Swaziland sugar industry. Factors measured in terms of likert type scale were used to measure each relational construct within the miller-grower contract relationship. The results point to a number of aspects both growers and millers need to attend to which could contribute to improved relantionships and in turn efficiency and returns in the sugar industry in Swaziland.