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Which specific investments do the industry and the cattle producers need for their coordination in order to meet the demands of the international market and participate in it? Insertion in the international market is a multifaceted and complex theme, which represents a challenge for the market and for the research in economy of organizations, because it focuses on the systemic coordination of a certain segment for the generation of value as an organizational strategy. Through critical observation of export sub-systems, their various institutional environments and their differences from internal issues can be considered central, as this leads to specific investments to operate in these markets in uncertain environments. This gap encourages and justifies this research, which aims to present and advance the concept of agribusiness system (SAG). Specifically, we sought to identify the observed regularities of the agents involved in these transactions — specific assets invested, degree of recurrence, degree of knowledge and adaptability — internal and to the external market and to compare them. Such an analysis seeks to delimit the institutional differences, the coordinating agents of the different strictly coordinated systems. Finally, to determine the boundaries of a typical system and one that meets specific demands and the need for coordination among the agents to serve them by focusing on systems geared to the international market. Through the methodology of multiple case studies, the three largest slaughter and processing industries in Brazil and their relationship with the farmers in relation to the Sub-System Strictly Coordinated (SSSC) for export to the European Union were addressed. Among the regularities of the case studies, the emergence of SSSCs for the internal market focused on quality resulting from the process of creation of the SSSC-exporter allowed to explore the degree of organizational tolerance of the arrangements of these companies. The cases also provided findings about organizational tolerance and the relation of specific investments and quality in the chain.

This paper aims to investigate the role of market power on vertical integration choices in the Brazilian orange juice sector. The main hypothesis states that market power, along with economizing drivers, has had an important role in the economic organization of the orange juice sector. In order to accomplish this task, we examine the make-or-buy decision of juice-processing firms in procurement of inputs (fruits), through a 15-year panel of five firms (more than 90% of the market). Empirical results offer new theoretical insights on role of market power in vertical integration decision. From these theoretical advancements, as implications for practitioners, market power raises attention for critical strategizing issues and antitrust remedies.

The Brazilian Coffee Agribusiness system has been modified over the last years. An evidence is the outsourcing contracts in agricultural mechanization of harvesting services. Brazilian coffee growers have replaced their own machineries for specialized services firms. The Coase (1937)'s make or buy paradigm sheds light the decision of farmers of the coffee chain with the investment lens. The investigation analyzes the determinants of outsourcing contracts in the transaction of harvesting mechanization in the agribusiness system of coffee in Brazil based on a quantitative approach through a probit regression with 105 Brazilian coffee growers’ interviews. The results validated the path dependence aspect and the hypothesis of the asset specificity and uncertainty of the efficient alignment argument of the Transaction Cost Economics, pointing out the high level of education of the farmer and the adoption of contracts as a way of coordinating other transactions as determinants of the outsourcing contracts of the transaction of harvesting mechanization. The study brought a change in coffee grower’s profile to a modern pattern of decision-making with three different institutional arrangements for the transaction of harvesting mechanization: total vertical integration, tapped vertical integration and outsourcing contracts or only outsourcing contracts., Proceedings in Food System Dynamics, Proceedings in System Dynamics and Innovation in Food Networks 2017

Which specific investments do the industry and the cattle producers need for their coordination in order to meet the demands of the international market and participate in it? Insertion in the international market is a multifaceted and complex theme, which represents a challenge for the market and for the research in economy of organizations, because it focuses on the systemic coordination of a certain segment for the generation of value as an organizational strategy. Through critical observation of export sub-systems, their various institutional environments and their differences from internal issues can be considered central, as this leads to specific investments to operate in these markets in uncertain environments. This gap encourages and justifies this research, which aims to present and advance the concept of agribusiness system (SAG). Specifically, we sought to identify the observed regularities of the agents involved in these transactions — specific assets invested, degree of recurrence, degree of knowledge and adaptability — internal and to the external market and to compare them. Such an analysis seeks to delimit the institutional differences, the coordinating agents of the different strictly coordinated systems. Finally, to determine the boundaries of a typical system and one that meets specific demands and the need for coordination among the agents to serve them by focusing on systems geared to the international market. Through the methodology of multiple case studies, the three largest slaughter and processing industries in Brazil and their relationship with the farmers in relation to the Sub-System Strictly Coordinated (SSSC) for export to the European Union were addressed. Among the regularities of the case studies, the emergence of SSSCs for the internal market focused on quality resulting from the process of creation of the SSSC-exporter allowed to explore the degree of organizational tolerance of the arrangements of these companies. The cases also provided findings about organizational tolerance and the relation of specific investments and quality in the chain., Proceedings in Food System Dynamics, Proceedings in System Dynamics and Innovation in Food Networks 2017

Coffee production has grown 100% in volume over the past 30 years, with 30 million bags of coffee consumed every year in the world. Brazil is responsible for 35% of this production, followed by Vietnam (16%), Indonesia (7%), Colombia (5%), and Ethiopia (5%). At this pace, consumption has expanded not only in traditional markets such as the United States of America (4.2 kg/year), Germany (6.9 kg/year) and France (5.7 kg/year), but also in tea‐driven markets such as Japan, Korea, Russia and China (CECAFE 2013). In 2013, Brazil harvested 49.15 million 60 kg bags of processed coffee, 38.29 million of which were of Arabica coffee and 10.86 million of Conilon species (CONAB 2014). The planted area in Brazil is 2.3 million hectares and there are about 287,000 producers, predominantly mini and small farmers. Having continental dimensions, the country presents a variety of climates, reliefs, altitudes and latitudes that allow the production of a wide range of types and qualities of coffee (MAPA 2014). This research aimed to clarify present and future challenges for the Brazilian coffee agrichain, considering the growing demand and also competitiveness between the coffee countries’ producers. To capture the vivid perception of the actors in the coffee chain, a qualitative approach was employed. The research was conducted in three phases. In the first phase, 10 coffee specialists were interviewed using the snowball technique with the saturation premise, to identify the coffee sector’s main milestones for Brazil over the next 30 years. In the second phase, desk research was conducted to collect data and bibliographical information. This culminated in eight key success factors for coffee farming management. Finally, in the third phase, the results of phase two were submitted for analysis by 39 coffee farmers through three discussion panels held in the major producing regions: Sul de Minas (corresponding to 60% of the national production), Cerrado Mineiro (with 20%), and Matas de Minas (with 15%) (CECAFE 2012). The first outcome was a comparative analysis of the three regions using the lens of the key success factors and, secondly, the main future challenges faced by each region. Added to those results, the panels provided insights for public policies and private strategies. The study consolidated new drivers of change that directly impact corporate strategies and public policies, namely: a) increasing complexity in coffee farming, b) farm succession, c) mechanization, d) increased use of pesticides, d) climate change, e) consumer behavior, and e) risk management in the coffee agrichain. Given these drivers of change, companies in the Brazilian coffee agrichain may move forward with relevant strategic focus on important issues, leading to: i) loyalty from the farmer to guarantee high quality coffee supply, ii) increase in entry barriers to ensure the maintenance of leadership in world coffee production and exportation, iii) operational risk minimization for companies as well as coffee farmers, iv) encourage and participate in the farmers´ actions to make coffee activity more environmental friendly, and finally, v) designing marketing plans connected with the coffee consumers’ habits and desires, current and future., Proceedings in Food System Dynamics, 2016: Proceedings in System Dynamics and Innovation in Food Networks 2016

Coffee production has grown 100% in volume over the past 30 years, accounting for 144 million coffee bags produced in 2015. Brazil responded to 42% of this production, along with Vietnam (19%), Colombia (9%), Indonesia (8%), and Ethiopia (4%) (OIC, 2016). Following this pace, the consumption expanded not only in such traditional markets as the United States (4.2 kg/year), Germany (6.9 kg/year), and France (5.7 kg/year) but also in tea-driven markets, such as Japan, Korea, Russia, and China (CECAFE, 2013). In 2015, Brazil harvested 43.2 million 60-kg bags of green coffee, 32 million of which were of Arabica coffee and 11.2 million of a Conilon species (CONAB, 2016). The planted area in Brazil is 2.3 million hectares, and there are about 287,000 producers, predominantly mini- and small farmers. Having continental dimensions, the country presents a variety of climates, reliefs, altitudes, and latitudes that allow the production of a wide range of types and qualities of coffee (MAPA, 2016). This research aimed to clarify present and future challenges for the Brazilian coffee agrichain, considering the growing demand and also competitiveness between the coffee countries’ producers. To capture the vivid perception of the actors in the coffee chain, a qualitative approach was employed. The research was conducted in three phases. In the first phase, 10 coffee specialists were interviewed to identify the coffee sector’s main milestones for Brazil over the next 30 years. The findings culminated in eight key success factors for coffee-farming management. Finally, in the second phase, the results of phase two were submitted for analysis by 39 coffee farmers through three discussion panels held in the major producing regions: Sul de Minas (corresponding to 25% of the national production), Cerrado Mineiro (with 10%), and Matas de Minas (with 16%) (MAPA, 2016). The third phase comprised the data analysis, aggregating the patterns by regions and by critical factors. The first outcome was a comparative analysis of the three regions using the lens of the key success factors and, second, the main future challenges faced by each region. The study consolidated new drivers of change that directly impact corporate strategies and public policies, namely: (a) increasing complexity in coffee farming, (b) farm succession, (c) mechanization, (d) increased use of pesticides, (e) climate change, (f) consumer behavior, and (g) risk management in the coffee agrichain. Given these drivers of change, companies in the Brazilian coffee agrichain may move forward with relevant strategic focus on important issues, leading to: (i) loyalty from the farmer to guarantee high-quality coffee supply, (ii) increase in entry barriers to ensure the maintenance of leadership in world coffee production and exportation, (iii) operational risk minimization for companies as well as coffee farmers, (iv) encourage and participate in the farmers´ actions to make coffee activity more environmentally friendly, and finally, (v) designing marketing plans connected with the coffee consumers’ habits and desires, current and future.

The Brazilian Coffee Agribusiness system has been modified over the last years. An evidence is the outsourcing contracts in agricultural mechanization of harvesting services. Brazilian coffee growers have replaced their own machineries for specialized services firms. The Coase (1937)'s make or buy paradigm sheds light the decision of farmers of the coffee chain with the investment lens. The investigation analyzes the determinants of outsourcing contracts in the transaction of harvesting mechanization in the agribusiness system of coffee in Brazil based on a quantitative approach through a probit regression with 105 Brazilian coffee growers’ interviews. The results validated the path dependence aspect and the hypothesis of the asset specificity and uncertainty of the efficient alignment argument of the Transaction Cost Economics, pointing out the high level of education of the farmer and the adoption of contracts as a way of coordinating other transactions as determinants of the outsourcing contracts of the transaction of harvesting mechanization. The study brought a change in coffee grower’s profile to a modern pattern of decision-making with three different institutional arrangements for the transaction of harvesting mechanization: total vertical integration, tapped vertical integration and outsourcing contracts or only outsourcing contracts.