Supply chain innovation requires that actors in supply chains invest in inter-firm relationships. To build innovation capacity between firms requires a number of competences and actors need to build trust and share information if they are to learn from one another and develop the behaviours needed to innovate. The Australian beef supply chain is a globally competitive supply chain that has invested significantly in innovation at the business level, particularly in breeding animals to survive in extreme conditions in Australia and produce a high quality carcass beef. This paper examines the relationships between firms in the supply chain and analyses the nature of relational factors between firms. Initial findings indicate that the supply chain is poorly integrated and many of the actors are badly placed to develop innovative capacity with supply chain partners.