Trust and economic relationships in selected European agrifood chains

Abstract

This chapter explores the nature and role of trust in eight selected agri-food chains in four EU countries (the pigs-to-sausage and barley-to-beer chains in Germany, the cattle-to-beef and pigs-to-pigmeat chains in Ireland, the pigs-to-cured ham and cereal-to-bread chains in Spain, and the malting barley-to-beer and cattle-to-beef chains in the UK). Following a brief consideration of the concept of trust, the empirical analysis identifies key features of the business environments of the selected agri-food chains, and their possible influence on chain relationships. The assessment is based on 28 qualitative interviews with food chain experts. In particular, the connection between perceived trust levels and the prevailing type of vertical business relationships is explored. The findings suggest that trust is more pronounced among small- and medium-sized enterprises (SMEs) whose representatives have personal relationships with each other. There is more trust upstream in the chain than downstream. However, there is also considerable mistrust at the farmer end in several of the studied chains.