Determinants of Firmsâ Decisions to Use Public or Private Grades and Standards: Preliminary Evidence from Fresh Produce Markets of SÃ£o Paulo Brazil

Denise Mainville

Determinants of Firmsâ Decisions to Use Public or Private Grades and Standards: Preliminary Evidence from Fresh Produce Markets of SÃ£o Paulo Brazil

äºParadoxes in Food Chains and Networks

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Denise Mainville

Denise Mainville Michigan State University and affiliate of University of SÃ£o Paulo Postal Address: Alameda Casa Branca, 343 #1505 Jardins SÃ£o Paulo, SP 01408-001 Brazil Telephone: 55-11-289-6799, extension 1505 Fax: 55-11-289-6799 Email: mainvill@msu.edu

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Page Range:: 286â297

DOI:: https://doi.org/10.3920/9789086865079_027

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The role of grades and standards (G&S) in agrifood markets has come into increasing focus in recent years. An important tendency that has been identified is firmsâ increasing reliance on private G&S regimes over public ones, generating concern over the exclusionary effects that private G&S, which are associated with tightly coordinated and investment-intensive supply chains, can have for the participation of diverse firms in the market. This paper reports preliminary results from ongoing research in the fresh produce markets of SÃ£o Paulo Brazil to address two research questions: What are the determinants of firmsâ choices between public and private G&S? How are public and private G&S administered by firms? Supporting existing literature, the research finds that the institutional context, strategic purpose, and product and market characteristics are important general factors influencing the emergence of public and private G&S regimes. The empirical research also provides support for the hypothesis that non-mainstream product requirements, the importance of the product in the firmâs activities or sales, market power, scale of operations, and investment in brand capital and reputation are key firm-specific factors encouraging the use of private G&S regimes over public ones. A range of formal and informal, private and public methods for administering G&S were found, and the implications of public versus private regimes for stakeholders in the marketing chain, in particular for suppliers who must make investments in order to comply with the specifications of the regimes, are discussed.

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Paradoxes in Food Chains and Networks

ISBN:: 9789086865079

åºçç¤¾:: Wageningen Academic

å°å·åºçæ¥æ:: 10 Oct 2002

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Determinants of Firmsâ Decisions to Use Public or Private Grades and Standards: Preliminary Evidence from Fresh Produce Markets of SÃ£o Paulo Brazil

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Paradoxes in Food Chains and Networks

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Determinants of Firmsâ Decisions to Use Public or Private Grades and Standards: Preliminary Evidence from Fresh Produce Markets of SÃ£o Paulo Brazil

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