Partnerships in the Irish Beef Industry: Contract Theoretical Analyses

Abstract

A number of partnerships have recently been established in the Irish beef industry. A partnership consists of a meat processor and a number of farmers. This study analyzes 4 such Irish partnerships, based on contract theory. The conclusions are (a) it pays to collaborate with the best possible partners; (b) having control of a major part of the operations is necessary for success; (c) with time, better collaboration is achieved; (d) a simple relationship between the processor and the producers reduces conflicts; (e) a strong brand name is necessary to reach lucrative consumer markets; (f) information sharing facilitates the coordination.

KEYWORDS:

• beef industry
• contract theory
• coordination
• Ireland
• motivation
• partnership

Acknowledgments

This article is not a part of the special issue.