Building trust between growers and market agents

Abstract

In the absence of the auction as the principal mechanism for setting price in the Perth fresh fruit and vegetable market, there is a great deal of distrust between growers and the market agents who receive and distribute their produce. While most growers generally transact with more than one market agent, satisfaction with the exchange builds trust. Trust is facilitated where the grower and the market agent share similar goals. To reinforce trust, growers prefer to transact with those market agents who are prepared to invest in their relationship with the grower. Conversely, the market agents propensity to act opportunistically, to exercise power and to withhold information from the grower will have a significant negative impact on the trust that develops between growers and market agents.