Partnerships in the Irish Beef Industry: Contract Theoretical Analyses

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 four such Irish partnerships, based on contract theory. The conclusions are: (1) It pays to collaborate with the best possible partners. (2) Having control of a major part of the operations is necessary for success. (3) With time, better collaboration is achieved. (4) A simple relationship between the processor and the producers reduces conflicts. (5) A strong brand name is necessary to reach lucrative consumer markets. (6) Information sharing facilitates the coordination