ABSTRACT
This chapter explores the nature of the transactional relationships between farms and firms embedded in regionally-based value chains involved in two sectors of intensive agricultural production in Australia, wine growing and potato growing. These two sectors of food production operate within buyer-driven supply chains involving major corporate enterprises. The analysis is based on detailed survey research, case study material and interviews which reveal the nature of the contractual relationships both formal and relational which tie farming enterprises into corporate controlled value chains in the countries wine industry and potato industries. The chapter explores the authority and trust which is involved in the various stages and transactions of the oligopolistic wine growing and potato growing value chains in regional Australia. It discusses regarding the unbalanced power relationships which tie firms into value chains, using farms as examples of small firms and subcontractors which operate in subordinated circumstances within agricultural value chains.
