Relationship of producers and retail networks in the regional food market

Abstract

The article reviews the issues of difficult and often uncooperative relationships between producers (suppliers) and retail networks within thecontext of development of the new structure ofregional food market. At the present stage, the problem of numerous additional requirements presented by retail trade networks to producers during the conclusion of supply contract is noted as crucial for both parties. Hypotheses wereformulated during analysis of literaturetheir verification showed that the basis of disputed situations is mainly composed by price and bonus payments. The economic substance of bonus payments is collected by retail networks from agricultural producers and producers of food commodities is revealed. Relative importance of bonus payments in terms of retail networks and suppliers is compared; importance of divergence of their viewpoints is estimated. On the basis of quantitative and qualitative empirical data, the attempt to define the main disputed zones, with the help of modern marketing tools is undertaken.

Keywords

• marketing
• regional food market
• suppliers
• retail
• retail distribution networks
• bonus payments
• relationship
• supply chains
• contradictions and disput situations.