
Volume 50, Issue 2 (2025)
Determinants of Farmer-Buyer Relationships in Bangladesh: An Econometric Analysis
(Pages 231-241)
Author(s)
Mizanur Rahman1,*
1Department of Economics, Bangladesh University of Business and Technology (BUBT), Dhaka, Bangladesh
Abstract:
This study empirically investigates the determinants of contractual and relational arrangements between farmers and buyers in the fruit and vegetable sectors of Northern Bangladesh. Utilizing primary survey data from 134 farmers, we analyze the structure of dyadic relationships with lead firms, wholesalers, intermediaries, and final consumers. The research examines how specific contractual provisions (e.g., quality standards, quantity specifications, service requirements) are associated with key relationship attributes, including trust, satisfaction, opportunism, and relationship duration. Employing a combination of Binary Logistic Regression and the Kruskal-Wallis test, our analysis reveals a stratified market structure: large-scale farmers predominantly engage in formal contracts with lead firms, medium-scale farmers utilize a mixofspot market transactions with wholesalers and formal contracts with intermediaries, and small-scale farmers remain dependent on informal arrangements with intermediaries. The findings underscore the critical role of farm scale and relationship governance in shaping supply chain dynamics. This research provides valuable insights for policymakers and development practitioners aiming to design targeted interventions that strengthen market linkages, improve contractual fairness, and enhance the resilience of different farmer classes within regional horticulture supply chains.
Keywords:
Contract Farming, Supply Chain Governance, Transaction Costs, Relationship Marketing, Agricultural Development, Horticulture, Bangladesh.
JEL Classifications:
Q13; L14; D22; O13.
Cite this paper:
Mizanur Rahman, Determinants of Farmer-Buyer Relationships in Bangladesh: An Econometric Analysis, The Journal of Social, Political and Economic Studies. Volume 50, Issue 2, Year 2025 | PP. 231-241. https://thejspes.com/vol50-a21
© 2025 The Author(s). Published by 'The Journal of Social, Political and Economic Studies'.

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