Building trust in agri-food chains: the mediating role of effective communication
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Using recent survey data (n = 1,430) on trust levels in agri-food supplier-buyer relationships in six different European countries, two commodity chains (meat and cereals) and two chain stages (farmer-processor and processor-retailer), main determinants of trust are identified and discussed. The structural equation modelling estimation results indicate that trust can be significantly improved by effective communication and by a positive collaboration experience. The existence of personal bonds does not seem to play a direct role in the retailer-processor relationship but is important when dealing with farmers. In both chain stages a positive collaboration experience as well the existence of personal bonds also indirectly enhance trust by promoting effective communication which in turn positively impacts on trust levels, thus making it a powerful mediator.