Exchange relationship between Breeder organization and Producer

Purpose of exchange:

single transaction versus long-term relationship

Nature of communication:

anonymous versus firm to firm

Formality of exchange:

formal versus informal

Type of contract:

classic (closed) versus relational (open)

Long-term relations exist between breeders and farrowers. The relations are not formalised into written contracts.

Objective is to guarantee a stable supply of genetic material. Frequent switching of breeder is not favourable for farm management.

Firm-to-firm communication exists between breeders and farrowers.

The breeding company requires its breeders to transport the gilts themselves to farrowers, to shorten communication lines (although animal health-related reasons also play a role).

Relations between breeders and farrowers are informal.

No contracts exist between breeder and farrower. Farrowers may switch to new suppliers.