Social Capital and Transaction Costs in Fulani Women Dairy Processing Units in the District of Gogounou, Benin

This paper analyzes the importance of social capital in the local dairy processing units of the Fulani� women in the District of Gogounou, Benin. Results showed that when relationships between suppliers and clients are based on strong ties, freely milk supply and credits arrangements are predominant in transactions, contrary to relationships based on weak ties. These results suggest the distinction of two types of social capital, namely structural social capital and relational social capital. The latter corresponds to dairy processing women relationships based on strong ties or weak ties where deepening of trust favor transactions with credits arrangements.