VIII International Agribusiness PAA-PENSA Conference - 2011, Argentina

1062 Pages·2011·14.47 MB·English

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INDEX:

Agribusiness chains, networks and clusters coordination:

FED CATTLE MARKETING IN THE SOUTH-EASTERN OF MATO GROSSO (BRAZIL):
AN ANALYSIS OF BEEF PRODUCERS’ PROFILE AND TRANSACTIONS
COORDINATION

RURAL MARKETS INTEGRATION: THE CASE OF TRADITIONAL CASSAVA FOOD
PRODUCTS

HOW DOES THE LACK OF GUARANTEES INFLUENCE ORGANIZATIONAL
FAILURES? EVIDENCES FROM THE BEEF CHAIN

INSTITUTIONAL ARRANGEMENTS ANALYSIS THAT INVOLVES FAMILY FARMERS
INTO BIO-FUEL PRODUCTION SYSTEM

NETWORKS AND CHAINS FROM A COMPLEX PERSPECTIVE

AGRICULTURAL INPUT MARKET SEGMENTATION IN ARGENTINA: HOW DO
ARGENTINE FARMERS BUY THEIR EXPENDABLE INPUTS?. THE CASE OF THE SEED
INDUSTRY

SISTEMAS DE GESTIÓN DE CALIDAD. IMPLEMENTACION Y EVALUACIÓN DE LA
PERFORMANCE MEDIANTE UN ESTUDIO DE CASO MULTIPLE EN INTA

PROPOSAL TO RECOVER SMALL SUGARCANE PLANTS IN A CONSOLIDATION
ENVIRONMENT

AUTO-CONSUMPTION AND INFORMAL SALE ESTIMATION IN THE GOAT MEAT
AGRI-FOOD CHAIN IN THE PROVINCE OF LA PAMPA, ARGENTINA (2009).

AN OVERVIEW OF THE BRAZILIAN CITRICULTURE.

PROPOSITION OF A METHOD TO ELABORATE PLANS FOR IMPROVING
COMPETITIVENESS IN LOCAL PRODUCTIVE ARRANGEMENTS (CLUSTERS)

REDES AGROEMPRESARIALES Y TERRITORIO-RAET: UN CAMINO DE ANÁLISIS
(AGRIBUSINESS NETWORKS AND TERRITORY: A PATH FOR ANALYSIS)

THE INNOVATIVE POTENTIAL OF GRAIN MARKETING IN ARGENTINA

REDEFINICION DE LOS ALCANCES DEL SISTEMA AGROINDUSTRIAL DE LA
ARGENTINA PARA EL PERIODO 1980-2005

SYSTEM BASED IN FUZZY RULES WITH PARAMETERS STRUCTURED IN NEW
INSTITUTIONAL ECONOMICS FOR EVALUATION OF TRANSACTION UNCERTAINTY
BETWEEN CASSAVA PRODUCERS AND ITS DEALERS

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COMO INTERVENIR EN INICIATIVAS CLUSTER AGROALIMENTARIOS EN PAÍSES
EN DESARROLLO. EL MÉTODO EPECA.

TRAJECTORY OF THE ARGENTINE BIODIESEL AGRIBUSINESS: THE STORY SO FAR
AND CHALLENGES TOWARDS THE FUTURE.

SISTEMAS DE ASEGURAMIENTO DE CALIDAD: ALINEACIÓN DE LOS ENTORNOS
ORGANIZACIONAL Y TECNOLÓGICO PARA LA CREACIÓN DE VENTAJAS
COMPETITIVAS

SCENARIO ANALYSIS OF THE SOYBEAN AGRO-INDUSTRY COMPLEX IN PARAGUAY

OPPORTUNITIES FOR QUALITY PRODUCTION IN EUROPEAN PORK CHAINS

CHALLENGES FOR FARM INPUTS COMPANIES IN IMPLEMENTATION OF
CUSTOMER RELATIONSHIP MANAGEMENT IN THE SUGARCANE INDUSTRY

Institutional environment
SHOULD I GO TO COURT? AN ASSESSMENT ON THE ROLE OF THE JUDICIARY IN
DISPUTES BETWEEN CATTLE RAISERS AND MEATPACKERS IN BRAZIL
BOUNDED RATIONALITY: SOYBEAN CONTRACT REVIEW IN THE STATE OF GOIÁS
(BRAZIL).

Public Policy and Regulatory Aspects

THE SOCIAL DIMENSION OF ETHANOL AND BIODIESEL IN THE BRAZILIAN PUBLIC
POLICIES

NATIONAL IRRIGATION POLICY AND SOCIOECONOMIC DEVELOPMENT IN THE
NORTH OF MINAS GERAIS

EFFECTS OF THE ENVIRONMENTAL REGULATION ON THE INTERNATIONAL
TRADE PATTERN FOR AGRICULTURAL COMMODITIES

DETERMINANT ROLES OF CORPORATE INVESTMENT AND FISCAL SUBSIDIES IN
THE EXPANSION OF SUGARCANE AGRIBUSINESS WITHIN THE STATE OF GOYAZ,
BRAZIL.
(2007 – 2010).

Agribusiness International Trade

INTERNATIONAL STANDARDS AND SMALL-SCALE FARMER BEHAVIORS:
EVIDENCE FROM PERU

ASSESSMENT OF SANITARY NON-TARIFF MEASURES (NTM) UPON BEEF TRADE
FLOWS FOR GERMANY AND ARGENTINA

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QUALITY ATTRIBUTES IN A GLOBAL PRODUCTION CHAIN

IMPACT ASSESSMENT OF THE NON-TARIFF MEASURES (NTM) UPON
INTERNATIONAL LEMON TRADE

LAS EXPORTACIONES AGROINDUSTRIALES Y EL CRECIMIENTO ECONONICO: LA
APERTURA EXTERNA

Corporate Strategies

EXCHANGING COMPETENCES IN STRATEGIC ALLIANCES: A CASE STUDY OF
COSAN AND SHELL BIOFUEL VENTURE

FIRM, INDUSTRY, CORPORATE AND TIME EFFECTS ON FIRM PERFORMANCE IN
THE U.S. FOOD ECONOMY

THE SUCCESSION PROCESS IN BRAZILIAN FAMILY FARM BUSINESS: A MULTICASE
STUDY

TRANSGENIC SEED INDUSTRY HISTORICAL TRAJECTORY, CURRENT AND FUTURE
TRENDS – MORE OPEN BUSINESS MODELS?

INNOVACIÓN EN LA GESTIÓN DE LOS AGRONEGOCIOS: DISEÑO DE UN BALANCED
SCORECARD EN PYMES AGROPECUARIAS

INNOVATION AS A DETERMINING FACTOR IN THE ACCESS TO NEW
AGROBIOTECHNOLOGICAL BUSINESSES: THE BIOCERES CASE

Corporate Governance

STRATEGIC CONTROL OF AGRO-INDUSTRIAL COOPERATIVES: A STRATEGIC MAP
PROPOSAL

THE COSTS OF COOPERATIVE GOVERNANCE: DEMOCRATIC AND AGENCY COSTS

MECANISMOS DE GOBIERNANZA CORPORATIVA Y RENDIMIENTO: UN
ESTUDIO EN EL SECTOR AGROINDUSTRIAL

Sustainability

CONSUMER ATTITUDES TOWARDS GREEN FOOD IN EUROPE: A VALUES-
ATTITUDES HIERARCHICAL MODEL

IMPACTS AND EXTERNALITIES OF AGRICULTURAL MODERNIZATION IN
BRAZILIAN STATES

THE ROLE OF LAND USE COMPETITION IN FARMERS’ ENGAGEMENT IN
RENEWABLE ENERGY PRODUCTION

RESTRICCIONES AL DISEÑO E IMPLEMENTACIÓN DE PROYECTOS MDL
FORESTALES EN ARGENTINA

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ANIMAL WELFARE: THREAT OR OPPORTUNITY? LESSONS FROM POULTRY
PRODUCTION IN ARGENTINA

CAPTURA DE VALOR EN EMPRESAS AGROPECUARIAS POR IMPLEMENTACIÓN DE
AGRICULTURA CERTIFICADA: UN ESTUDIO DE 4 CASOS REALES

Finance
AN ANALYSIS OF PRICE RISK MANAGEMENT BY THE PRODUCERS OF ARABICA
COFFEE IN BRAZIL

AN EMPIRICAL TAXONOMY OF FARM BUSINESSES: FARM ASSETS AND THE
FINANCING OF AGRICULTURAL PRODUCTION

Marketing

PUBLIC PERCEPTIONS OF THE AGRI-FOOD INDUSTRY - A COMPARATIVE
ANALYSIS OF THE SOCIAL WEB AND THE QUALITY PRESS IN GERMANY

AGRONEGOCIOS DE HORTALIZAS FRESCAS PRECORTADAS EN LA CIUDAD DE
BUENOS AIRES: ESTRATEGIAS, TÁCTICAS Y ESTRUCTURAS DE GOBERNANCIA
ADOPTADAS POR LAS EMPRESAS PROVEEDORAS

CAN PORK CONSUMPTION INCREASE IN BRAZIL? CHALLENGES AND
OPPORTUNITIES FOR THE BRAZILIAN PORK PRODUCTION CHAIN

ENTERPRISE: CABAÑA ARGENTINA. CASE: CABAÑA ARGENTINA, QUALITY AND
TASTE FROM ITS ORIGIN.

FOOD CONSUMER BEHAVIOR: A STUDY ABOUT PORK

BRAND AND QUALITY LABELS: WHICH INTERACTION?

BUSINESS “STREET MARKET”: A STUDY IN THE CITY OF LAVRAS

ANALYSIS OF COOPERATIVE MARKETING ACTIONS IN BRAZILIAN AGRIBUSINESS:
A CASE STUDY IN THE BRAZILIAN TRADE AND INVESTMENT PROMOTION
AGENCY (APEX – BRASIL)

AN EMPIRICAL ASSESSMENT OF THE DETERMINANTS OF FARMERS’
SATISFACTION WITH THE ORGANIC CERTIFICATION PROCESS IN LATIN AMERICA

PROPOSIÇÃO DE UM MODELO DE INCENTIVOS EM CANAIS DE DISTRIBUIÇÃO

THE DEVELOPMENT OF ORGANIC FOOD SECTOR IN WESTERN BALKAN
COUNTRIES – RESULTS OF DELPHI METHOD

BRANDING BEEF: A PROGRAMMED NUTRITION APPROACH

INVESTIGATING THE FUNCTIONAL FOOD MARKET IN A DEVELOPING COUNTRY

SOCIAL CLASS, MEAT CONSUMPTION AND ATTITUDES TOWARDS MEAT

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Human Resources

CONTEXTUALIZED THEORY AS AN INNOVATIVE TOOL TO IDENTIFY THE FORCES
OF SHAPING HUMAN RESOURCE MANAGEMENT: AN EXPLORATORY STUDY IN
WINERIES FROM THE NORTHEAST OF BRAZIL.

Logistics

LOGISTICS IMPACT ON ETHANOL COMPETITIVENESS FROM NEW PRODUCTION
AREAS IN GOIÁS – BRAZIL

Collective Actions and Social Capital

TOWARDS A SOCIAL CONSTRUCTION OF COMPETITIVE ADVANTAGES IN THE
BRAZILIAN BEEF CATTLE INDUSTRY: AN APPROACH OF LOCAL AGRO-
ALIMENTARY SYSTEMS

COLLECTIVE ENTREPRENEURSHIP: THE EMERGENCE OF ALTERNATIVE
COORDINATION MECHANSISMS TO ENHANCE COLLECTIVE ACTION

COLLECTIVE ACTION IN THE ARGENTINA AGRIBUSINESS SECTOR: A CONTRAST
WITH BRAZIL

AVALIAÇÃO DE DESEMPENHO DAS PRINCIPAIS COOPERATIVAS DE CRÉDITO DO
ESTADO DO PARANA BASEADA EM CRIAÇÃO DE VALOR ECONÔMICO: UM ESTUDO
MULTICASO

IS SOCIAL CAPITAL A PRODUCTION FACTOR IN AGRIBUSINESS SYSTEMS? A
COMPARATIVE ANALYSIS OF THE POULTRY, WINE AND BEEF SYSTEMS IN
ARGENTINA

CAMBIO DE PARADIGMA DEL SECTOR CITRÍCOLA EN LA PROVINCIA DE
CORRIENTES: EL CASO DE COOSANFRA

Social Responsability

CORPORATE SOCIAL RESPONSIBILITY AND MARKET COMPETITIVENESS IN
LOCAL FOOD SUPPLY CHAINS: CRAFTING INNOVATIVE STRATEGIES FOR VALUE
CREATION IN AGRIBUSINESS INDUSTRY

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Agribusiness chains, networks and clusters
coordination

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FED CATTLE MARKETING IN THE SOUTH-EASTERN OF MATO
GROSSO (BRAZIL): AN ANALYSIS OF BEEF PRODUCERS’ PROFILE
AND TRANSACTIONS COORDINATION

Authors:
LUÍS OTÁVIO BAU MACEDO. Economista, Doutor, Professor Adjunto, Universidade
Federal do Mato Grosso, Campus Universitário de Rondonópolis, MT. E-mail:
[email protected]
FÁBIO NOBUO NISHIMURA. Economista, Mestre, Professor Assistente, Universidade
Federal do Mato Grosso, Campus Universitário de Rondonópolis, MT. E-mail:
[email protected]
CÁSSIO GIOVANNI DE AGUIAR COSTA. Economista, Mestre, Professor Assistente,
Universidade Federal do Mato Grosso, Campus Universitário de Rondonópolis, MT E-mail:
[email protected]

Abstract
The research aims to relate Mato Grosso’s south-eastern beef producers to cattle marketing
arrangements. The sample was based on interviews with fifty nine cattle producers that live in
Rondonópolis (MT). It was ranked ranchers in three categories: (N1) producers that only sell
animals for cash and/or for installment (thirty days), (N2) producers that do (N1), but also
operate through NPR – Notas Promissórias Rurais and/or CPR – Cédulas de Produto Rural,
and (N3) producers that do (N2) and also enroll on forward contracts and/or futures contracts.
Based on the analysis of the data it was estimated an Ordered Logit Model in which were
found the following relevant variables: property area, SISBOV/ERAS certification, cross-
breeding e beef exports. In synthesis, the engagement on more demanding marketing
arrangements (N3) and (N2) has positive relationship with the size of the land area, the use of
cross-breeding on the cattle, and to beef exports. On the other hand, it was found that
SISBOV/ERAS certification has an opposite effect. The hypothesis is that to have that
certification enable producers to increase price arbitrage among packers in cash or installment
transactions.

Key-words: marketing arrangements, fed cattle, governance

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FED CATTLE MARKETING IN THE SOUTH-EASTERN OF MATO
GROSSO (BRAZIL): AN ANALYSIS OF BEEF PRODUCERS’ PROFILE
AND TRANSACTIONS COORDINATION

1. Introduction

The Brazilian beef agribusiness system has an institutional environment in which
transactions have low coordination. Transactions are mainly on cash for fed cattle and there is
a high degree of uncertainty about packers’ default and carcasses’ post slaughter
classification. On the other hand, quality certification programs that aim to strength
coordination have low adherence among producers and industries (Caleman et al., 2003). To
face that challenges, new commercialization schemes have arisen: i) cattle associations to
pool together inputs acquisitions and to supply fed animals to slaughter; ii) alliances among
producers, packers and retailers to marketing brand quality cuts; iii) electronic auction
arrangements to marketing animals; iv) exports of live cattle to slaughter abroad (mainly to
the Mid-East).
At the same time, there is an increasing trend in market concentration of the packer
industry. From 2000 to 2010, several Brazilian packers like Independência, Margen, Quatro
Marcos, Mercosul, Bertin, among smaller ones, have been acquired by the three industry
captains (JBS, Brasil Foods, Marfrig), or are in legal restructure processes. The dynamics of
the Brazilian beef market became more integrated to international supply and production
strategies, because of abroad investments undertaken by the leading packers.
Also bovine livestock production faces growing external and domestic pressure for
greater environmental sustainability. Retailer chains based on urban centers require
traceability safeguards about suppliers’ non-deforestation practices and labor standards. Also
European Union increased the demands on the Brazilian traceability system (SISBOV-ERAS)
On that strategic scenery, bovine livestock production in Mato Grosso from 2000 to
2010 reached the national leading position on cattle numbers. The growth in Mato Grosso
slaughters increased more than the growth in cattle numbers, so that cattle slaughter rate
climbed from 10% to 15% (IBGE, 2010). Feeding land capacity was improved by more
productive animal and soil practices like (i) nutrition supplementation, (ii) soil fertilization,
(iii) breeding genetics. In the same time, Mato Grosso’s beef exports reached Brazilian second
position and several new factory investments were undertaken.
However, during the last two years (2009 – 2010) most of the packer industries which
operate in the State were in financial distress and that resulted in layoffs and defaults to beef
producers. Uncertainty has arisen and provided incentives to the restrain of producers’ supply
to packers. Also feedlots’ forward contracts with the industry diminished because of higher
fodder costs.
The paper aims to relate the marketing of fed cattle in south-eastern Mato Grosso to
production practices at the farm level. The analysis tries to understand the choices of the
transactions’ governance arrangements between cattle producers and packer industries in
order to find the most relevant variables to vertical coordination in Mato Grosso’s beef
agribusiness system.

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2. Bovine livestock production in Mato Grosso: history, geography and production
indicators

Bovine livestock in Mato Grosso has a long life which started in the XVII century in
the South-Western regions at “Pantanal” wet lands. Afterwards, plain areas of “Cerrado” in
the lea of Cuiabá river were occupied by large farms of extensive grazing to supply meat,
leather and transport animals to the gold mining activity. In the XX century, rice plantation
increased together with bovine grazing and lumber, deforestation of large areas was the
combined result of those three activities.
From the 60’s forth, cattle-raising in Brazil was grounded on two factors: brachiária
and zebu. Namely the production in the tropical lands was based on extensive grazing on
brachiária planted soils and by zebu Asian breeds, mainly Nelore breed (Bonjour et al, 2008).
At the same time, the policies of the military regime aimed to the integration of the
national territory through highways and the colonization of North and Mid-West regions with
mining and agricultural activities. Those activities received the support of financial credits
and tax reductions and an agricultural policy to guarantee prices. The Geisel government
(1974 – 1979) started the II PND – Second National Development Plan with three programs
which worked out to the expansion of the agricultural frontier to the Mid-West region:
PRODOESTE – Mid-West Development Program, POLO-CENTRO – Cerrado Development
Program and PRODECER – Japan-Brazilian Cerrado Development Program. The government
also had pivotal importance to technologic innovation after 1976/77 in Mato Grosso due to
EMBRAPA – Brazilian Company of Agriculture Research which worked for the adaptation
of plants to the cerrado’s weather and soils.
The cattle-raising in 1993 received the support for greater technological innovation by
the PROMMEPE – Mato Grosso’s Program to Livestock Improvement which worked to
increase productivity at the farm level. The program was an important device during the 90’s
and 2000’s to provide extension services to upgrade the quality of Mato Grosso’s cattle. Also
a PROMMEPE’s side program called Cattle Breeding Support Program for Steers, since
1992 focus on reducing the slaughter age of cattle and improving meat quality by extension
and credit policies to enhance steers slaughter (Hamer et al., 2010).
The cattle-raising activity in Mato Grosso amounts to the largest productive land area
of the State with 21,8 million hectares. Mato Grosso’s grazing lands area is also the largest in
the country and between 1980 to 2006 increased at the rate of 47,4%, while Brazilian grazing
lands decreased 9,0%. The size of the bovine cattle increased at an even greater rate of
277,8% and reached 19,8 million heads in 2006, while at the same time the growth of the
Brazilian cattle was 45,3% (IBGE, 2010).
Among the major cattle producers, the share of Mato Grossos’s livestock in Brazil was
increasing since 2000 and reached the leadership in that decade (Diagram 1). The
performance was due mainly to cattle expansion of 62,9% in the North of the State from 2000
to 2008. That geographical dislocation was the reason of the change in the use of grazing
lands to crops in the South and South-East regions of Brazil, that movement occurred also in
areas of the Mid-West region due to the increasing soya, cotton and sugar cane plantations.

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