International Demand Shaping Governance Mechanisms in Brazilian Beef Agri-Systems: The Case of the Three Main Processors

Abstract

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.