Governance structures in cooperative slaughterhouses: a study on the chain of differentiated beef in the state of Paraná

• Published in: Revista de Economia e Sociologia Rural (RESR) 2022-01, Vol.60 (1), p.1-22
• Main Authors: Pereira, Jaiane Aparecida, Guimarães, Amanda Ferreira, Santos, Rejane Heloise dos, Schiavi, Sandra Mara de Alencar, Souza, José Paulo de
• Format: Article
• Language: English
• Subjects: beef cattle; cooperative; coordination; differentiation; hybrid forms; Livestock Production/Industries
• ISSN: 1806-9479
• DOI: 10.22004/ag.econ.340975

This study sought to discuss the governance structures adopted between livestock producers and their cooperative slaughterhouses in the chain of differentiated beef in the state of Paraná. The theoretical basis used was the Transaction Cost Economics and Measurement Costs Economics, complemented by the specificities of cooperatives. We conducted interviews with three key agents and eleven representatives of six cooperative slaughterhouses operating in this system. As result, we observed that the cooperatives have similar objectives and requirements, although there are differences in the levels of formality or flexibility. Although transactions are recurrent and have been successful, they involve a high asset specificity, depend on subjective measurements, and are still exposed to market uncertainties, which leaves room for the generation of conflicts and disincentives to quality. Despite this, the relational and reputational aspects associated with trust and partnership between the parties are elements that enable reduced transaction and measurement costs in these structures. At first, the measurements conducted by the cooperatives had an important role in the construction of trust between the parties and for value distribution. In a second moment, the trust built enabled the reduction of measurement costs.