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Abstract

Research on buyer-seller relationships in the agricultural sector receives little attention. A growing body of evidence suggests that strong buyer-seller relationships facilitate more efficient supply chains. The long term relationship literature tends to treat suppliers as a homogenous group when attempting to identify motivations, strategies and incentives to enhance the quality of buyer-seller relationships. This article explores the role of long-term relationships between buyers and sellers in Malaysia’s dairy industry, taking into consideration the heterogeneous nature of the producers. Interviews with 133 producers provide the data for this study. Cluster analysis suggests two well-defined groups differing in terms of demographic characteristics and relationship perceptions toward their buyers. Based on the results, the study proposes some policy implication and marketing strategies for both milk buyers and government.

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