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Purpose -The purpose of this paper is to identify factors which influence the sustainability of selected German agri-food chains. Design/methodology/approach -The paper is composed of a literature review, qualitative and quantitative expert interviews, and structural equation modelling. Findings -Effective communication, the existence of personal bonds and equal power distribution between buyers and suppliers are key determinants of sustainable vertical business relationships. The relevance and significance of the determinants differ across the investigated chain stages (farmer-processor versus processor-retailer), the use of formal versus non-formal relationship types and the maturity of a relationship. Research limitations/implications -Further research needs to empirically apply the analysis to agri-food chains other than the investigated pig-meat and cereal ones. Practical implications -Agribusiness and farm managers can enhance the sustainability of their business relationships by effective communication by fostering personal bonds with their suppliers and/or buyers, and by employing -and retaining -key staff who fit culturally and/or socially with those with whom they transact. Finally, managers also need to be aware of the fact that a business relationship can be negatively affected by abusing a more powerful market position. Originality/value -A model for measuring the sustainability of vertical business relationships is presented and empirically tested. In addition, factors influencing the sustainability of these relationships are identified for the case of selected German agri-food chains.

The role of inter-organizational relationships in European meat and cereals chains is analysed. Using survey data from 1442 farmers, processors and retailers in six countries (Germany, UK, Spain, Poland, Ireland, and Finland), the empirical relevance of several factors potentially influencing the sustainability of agri-food chain relationships is tested. Structural equation models are estimated for each country, each commodity chain (meat and cereals) and for two chain stages (i.e., the relationships between farmers and food processors, and the ones between processors and retailers). Effective communication and the existence of personal bonds are consistently found to mostly affect relationship sustainability, followed by unequal power distribution between buyers and suppliers and the negative impact of key people leaving a company concerned. The existence of personal bonds is particularly important in relationships with farmers, while effective communication is more crucial in relationships with retailers.

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