Identity Preservation of Grains and the Coordination of Agroindustrial Systems

Eduardo Luis Leão de Sousa; Pedro Valentim Marques

Identity Preservation of Grains and the Coordination of Agroindustrial Systems

In: Paradoxes in Food Chains and Networks

Authors:

Eduardo Luis Leão de Sousa

Eduardo Luis Leão de Sousa Ministry of Finance - Brazil Rua Carlos Cirillo Júnior, 194 05614-000 São Paulo – SP Brazil Tel: 55 61 9985-1205 Fax: 55 61 223-5108 e-mail: ellsousa@fazenda.gov.br

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Pedro Valentim Marques

Pedro Valentim Marques College of Agriculture - University of São Paulo Av. Pádua Dias 11 - Cx. Postal 9 Piracicaba – SP Brazil 13418-900 Tel: 55 19 3429-4119 e-mail: pvmarque@esalq.usp.br

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Type:: Chapter

Pages:: 379–389

DOI:: https://doi.org/10.3920/9789086865079_035

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This paper examines the role of coordination in situations that require Identity Preservation (IP) of grains. This change runs through the entire productive chain, from the seed industry, which is responsible for important technological innovations, to the final consumers, who are increasingly demanding with regard to food safety and sustainable agricultural practices. Transaction Cost Economics (TCE) was used as a theoretical foundation to establish and systematize the study. TCE concepts were applied to case studies of firms that work with differentiated grains and utilize distinct systems of segregation, incentives and monitoring tools for the farmer. This segregation involves the need for adaptations and alteration of the governance structure, generating contracts that can take several forms, depending on the transaction characteristics. Identity preservation also involves an increase in the costs that permeate all stages of the productive chain and have a strong relationship to the transaction characteristics and to the product attributes that need to be segregated. The strategies of incentive and monitoring were found to be fundamental to the success of the IP system. The incentives are directly related to the costs and uncertainty of the transaction and the monitoring form depends on the level of information asymmetry which , in turn, is associated with the attributes of the product.

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Paradoxes in Food Chains and Networks

E-Book ISBN:: 9789086865079

Publisher:: Wageningen Academic

Print Publication Date:: 10 Oct 2002

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- Life Sciences

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Identity Preservation of Grains and the Coordination of Agroindustrial Systems

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Paradoxes in Food Chains and Networks

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