Queensland Horticulture Farmers’ Willingness to Participate in Export-Focused Contract-Based Supply Chain Coordination
This study aims to investigate Queensland horticulture farmers’ willingness to participate in export-focused contract-based marketing agreements with downstream buyers as a form of closer vertical coordination. More specifically, this study aims to identify attributes of formal agreements that would encourage farmers’ participation, as well as enterprise and farmer characteristics which may explain their decision to seek closer vertical coordination with their product’s supply chain.
This study utilises a discrete choice experiment embedded within an online survey to understand farmers’ perceptions of export-focused contract-based supply chain coordination.
Based on the results of the study the following recommendations were derived:
- Queensland’s horticulture associations such as Growcom may consider identifying farmers who are not yet exporting their product but have an interest in doing so, particularly through marketing contracts with exporters. These farmers could be linked up with export agents to explore market opportunities including a potential individual export agreement.
- The horticulture industry could also consider exploring options to develop increased high-value supply chain collaborations within the domestic market. This could potentially also generate a higher production value for farmers. The horticulture industry may liaise with the retail sector to investigate potential options for streamlining supply chain coordination (e.g., contract farming). The experience gained from such an initiative could then be translated into the export supply chain.
- Industry networks (e.g., industry-buyer forums which offer both parties an opportunity to network and develop links) could be provided by the Government, such as Austrade or Trade and Investment Queensland, to facilitate business links and encourage the development of more coordinated vertical supply chain relationships. In addition, the provision of information and training about the potential benefits and costs of improved coordination for agribusinesses would support decision-making processes about options to create higher value for their product using a supply chain approach.