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)

Of all slaughtering, 90% is provided by regular suppliers (see also chapter 1)

The slaughterhouse is also an intermediary for trading piglets.

The slaughterhouse produces electronic newsletter for farmers.

The slaughterhouse manages relations with producers (see lesson 7).

Farmers have to present to the slaughterhouse information according to VKI regulation (Food-chain information).

The market is an open market without fixed delivery or buying contracts.

The slaughterhouse pushes quality management systems upstream. E.g., complaints could be communicated with IKB (not compulsory), but are dealt with link-to-link with farmers. When residues are found or other quality problems have been observed, the company sanctions farmers by reducing payment.

The slaughterhouse has long-term relationships with producers, but producers have no delivery contract. The slaughterhouse is also not obliged to source pigs from specific farms.

Long-term relationships involve a market concept, information feedback and professional relationship management (information exchange).