Determinants of trust in the Indonesian potato industry: a comparison among groups of potatoe farmers

Indonesia ’s potato industry is undergoing a rap id transformation , presenting producers with new and profitable opportunities to participat e in sales to the modern channels. However, few farmers are involved in the new channels. This study offers an analysis of three groups of potato farmers’ perceptio ns of trust in their buyers . The aim is to understand the many different ways producers can enter modern chains and how different channels suit the individual characteristics of different producers . We surveyed 50 farmer field school s (FFS) producers , 60 I ndofood suppliers , and 192 general potato farmers (GPF) in the largest potato producing area in Indonesia, West Java. Using MANOVA and linear regression methods, the study reveal s that flexibility and dependence are determina te factors of trust in the thre e groups. Particularly among the FFS producers , relative price and firm size are factors identified to increase the farmers’ trust. Farmers contracting with Indofood establish the relationship with the firm in terms of reputation and flexibility. On the ot her hand, the GPF has more concerns about buyers offering price transparency and joint problem solving. This article provides a conceptual model and an empirical analysis of the buyer - seller relationship in the potato industry in Indonesia

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