Factors affecting the relationship quality between coffee farmers and local traders: A case study in a highland commune of Dak Lak, Vietnam

Abstract

The study examines factors affecting the relationship quality between coffee farmers and local traders. This study uses data collected from 201 coffee farmers. The results show that there are five factors affecting the relationship quality, including collaboration, perceived price, profit/risk sharing, power asymmetry, and effectiveness communication. Profit/risk sharing is the most important factor positively influencing the relationship quality between coffee farmers and local traders while power asymmetry negatively affects the relationship quality. The study also claims that relationship quality positively impacts farmers’ profit and relationship continuity intention between coffee farmers and local traders. Policymakers should focus on increasing transparency and information sharing between coffee farmers and local traders to improve relationship quality.