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Abstract
The European milk crisis accentuated the importance of sustainability in the dairy sector. In achieving sustainable rural development, strategies focused on value chain creation, transparency and traceability are crucial. Sustainable relationships are needed to promote these aspects through collective action. This paper uses empirical evidence from Greece to contribute to the exploration of the sustainability concept within the agricultural sector and specifically the dairy sector. Based on empirical data, we analyse the overall sustainability of the dairy sector based on the innovation capacity of the sector and the sustainability of the relationship of the key actors, such as dairy farmers and processors. Additionally, a theoretical approach addressing ‘relationship sustainability’ and the factors affecting this construct is proposed. The preliminary findings underline a deficit in innovation capability and an inadequate sustainability level of the relationships within the dairy sector. Policy implications are offered.