Marcelo José Carrer

Plural forms of governance in the beef industry: a case study in Brazil

Purpose – The purpose of this paper is to describe the forms of coordinating transactions used by a large beef slaughterhouse and processing companies and their suppliers of beef cattle, and to identify the reasons for the adoption of plural forms of governance for their transactions with cattle suppliers. Design/methodology/approach – A case study format was selected for this investigation. The focal company selected offers a large number of products derived from beef for different commercialisation channels in the domestic and foreign market. A non-probability sample of 30 suppliers (cattle farmers) of the focal company provided data on finished steers sold in 2010, according to the three types of governance used in the transactions (spot market, forward contracts and long-term contracts). Findings – The simultaneous use of more than one type of governance structure to coordinate similar transactions has been termed plural forms of governance in the literature. In Brazil, new forms of governance, such a...

Farm Management Information Systems (FMIS) and technical efficiency: An analysis of citrus farms in Brazil

Abstract This study aims to investigate the impacts of personal aspects and aspects of the decision-making process (Rougoor et al., 1998) on the technical efficiencies of citrus farms in Brazil. A variable that measures the adoption of Farm Management Information Systems (FMIS) was created, which is an innovative aspect of this paper. Primary data for the crop year of 2013/14 (cross sectional data) were collected from a sample of 98 farms located in the State of Sao Paulo, one of the largest citrus regions in the world. The single stage model developed by Battese and Coelli (1995) was used to estimate the stochastic production frontier translog and the determinants of the efficiency of farms. The results showed that the technical efficiency scores across citrus farms range from 28% to 97%, with a mean of 75%. The expectation formation (personal aspect), the use of long-term contracts and the adoption of Farm Management Information Systems (aspects of decision-making processes) were significant determinants of technical efficiency. This result confirms the hypotheses built around these variables.

Transaction attributes and adoption of hybrid governance in the Brazilian cattle market

A transaction cost economics framework was used to test hypotheses on the alignment of transaction attributes and governance structures using data from a sample of 84 beef cattle farms in Brazil. A bivariate logit model was employed. It was found that the adoption of traceability and its certification and highly capital-intensive production systems, used here as proxies for asset specificity, plays a positive role in the choice of hybrid forms of governance.

Fatores determinantes do uso de instrumentos de gestão de risco de preço por pecuaristas de corte do Estado de São Paulo

The beef cattle price volatility is one of the main risks of this activity. To manage this risk, forward and futures contracts can be used by beef cattle farmers. However, the use of these contracts is quite restricted. The reasons are based on the characteristics of farmers and his business. In this context, this study aimed to identify the determinants factors of adoption of risk management mechanisms by beef cattle farmers in the State of Sao Paulo, Brazil. A logit model was used to analyze data from a sample of 86 beef cattle farmers. The results showed that the factors that significantly affected the adoption of the risk management tools were farm income, technological intensity and business leverage.

Formas plurais de governança: uma análise das transações de suprimento entre frigoríficos e pecuaristas

This work examined the existence of plural forms in the transaction between slaughterhouses and beef cattle farmers, analyzing the determinants of companies’ choice of governance structures. Three slaughterhouses were studied, using the literature of plural forms of governance as theoretical framework. It was found that only one of the slaughterhouses adopts plural forms to coordinate their beef cattle purchase transactions, and the other two companies obtained all of their live cattle supply through spot market trades. The determinants of plural forms adoption were aligned with the theoretical model. Ambiguity, complexity and strategic behavior variables determine the choice of the governance structure. For the other two companies, we noted little or no ambiguity and complexity in the transactions, and the absence of strategic motivations for the use of plural forms. Principal advantages of this strategy of coordination were: (i) reduction of information asymmetry; (ii) advantages of scale and greater bargaining power in the spot market; (iii) flexibility to supply different distribution channels and (iv) cross-learning effects.

Determinantes da demanda de crédito rural por pecuaristas de corte no estado de São Paulo

The aim of this paper is to identify determinants of demand and access to rural credit by beef cattle farmers in the Sao Paulo State. Primary data were collected from 86 beef cattle farmers through a questionnaire survey. The empirical analysis of the survey data is performed with the estimation of a logit model. The results show that all farmers who demanded credit in 2010 had access to it. The logit model results showed that farmers who own more farms are more intensive in production technology, receive non-farm activities income, are younger, adopt price risk management and are members of organizations related to rural production have higher probability to demand and access rural credit. Finally, some suggestions were presented for the rural credit policy for beef cattle in Sao Paulo State.

Assimetria de transmissão de preço na comercialização da uva fina de mesa no Paraná: 1997 a 2011

Parana State is a leading fine table grape producer in Brazil, and is characterized by the presence of small and medium producers. This study aims to analyze price transmission asymmetry (PTA) among producer, wholesale and retail levels from January 1997 to October 2011. Vector Autoregressive (VAR) was used to determine how price transmission occurs among players. The model used for PTA measuring was based on the methodology developed by Griffith and Piggott (1994). Results shows that, in the price transmission to the retail, wholesale presented a greater elasticity coefficient than the producer level; the Granger wholesale-retail unicausality is an evidence of asymmetric information; and price increases are transmitted faster than decreases, which, added to Griffith and Piggott’s t test results, confirm the existence of price transmission asymmetry.

Complementarity in the adoption of traceability of beef cattle in Brazil

Complementarity is an interesting approach to explain technology adoption. Taking account the other activities the farm performs in its production strategy can help understanding the decision on the adoption of new agricultural technology. This paper aims to evidence the existence of synergic effect resulting from the joint adoption of feedlot and traceability certification of beef cattle in Brazil. A sample of 84 beef cattle farms provided data to test hypotheses by using an OLS regression model. A measure of performance – revenue – is regressed on variables representing both isolated and joint adoption of capital-intensive production system and traceability. The results suggest the existence of synergic effect when joint adoption takes place. Joint adoption is influenced by a set of management practices, such as forward contracts, training of employees and zootechnical performance control, which are shared by both capital-intensive production systems and traceability.

Determinants of recognition of TRACES certification as valuable opportunity at the farm level in São Paulo, Brazil

TRACES (Trade Control and Expert System) is a veterinary health network created by the European Union to certify and monitor trade of animal products. This research aims to identify the factors that explain why few Brazilian farmers recognized adoption of the TRACES certification as a valuable opportunity. A farm is required to adopt traceability and a set of associated technologies to obtain certification. A sample of 84 beef cattle farms provided data for the testing of the hypotheses by means of a bivariate logit model. The recognition of the opportunity is positively correlated with previous experience with other quality programs, access to up-to-date information, a more diversified life experience, and active participation in relationship networks.

Determinants of feedlot adoption by beef cattle farmers in the state of São Paulo

The objective of this study was to identify the factors determining the adoption of feedlot by beef cattle farmers in the state of Sao Paulo, Brazil. For this purpose, primary data were collected among a sample of 84 farmers. The data were analyzed using descriptive statistics and a logit model. The analysis showed that the variables which increase the likelihood of adoption of feedlot by farmers are: scale of production, average price received, participation in farming associations, training, technical assistance and distance from the slaughter plant. Finally, measures for the formulation of public policies and private strategies were presented aiming at a more efficient use of production factor sand, consequently, gains in productivity by beef cattle farmers.