Abstract:
The study was conducted in Meru district particularly at Tengeru market which represents all vegetable
markets found in Meru district. The researcher wanted to investigate the informal relationship between
buyers and suppliers in vegetable production using the case of smallholder vegetable farmers. 'l'he
specific objectives of the study were; to show the type of relationship that exist between buyers and
suppliers in vegetable production on smallholder vegetable farmers, to identify factors that influence
relationship between buyers and suppliers in vegetable production on smallholder farmers, to identify
the benefits of buyer- supplier relationship on smallholder vegetable farmers in vegetable production,
and lastly was to identify the challenges of buyer- supplier relationship on smallholder vegetable
farmers in vegetable production. The study applied case study design, in which data were collected by
using interview, questionnaires and documentary reviews. The study also involved 96 respondents
include both buyers, suppliers, extension officers and vegetable market committee members. The study
revealed that short term relationship was much preferred than long term relationship at Tengeru market
between buyers and suppliers. The study further found that trust was the major factor influencing
relationship between buyers and suppliers. Not only that but also relationship between buyers and
suppliers benefit farmers through the increase income. Lastly, the study revealed that absence of
working capital made farmers to fail in buying farm inputs, hence contributed of poor vegetable
products. It is also recommended that there should be close links between buyers and suppliers in
vegetable business by creating a platform for suppliers and buyers to have face to face meeting and
effective communication.