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Value appropriation in Brazilian cattle industry

Gustavo Magalhães de Oliveira (School of Economics, Business and Accounting, University of São Paulo (FEA/USP), São Paulo, Brazil)
Silvia Morales de Queiroz Caleman (School of Business Administration, Federal University of Mato Grosso do Sul (UFMS), Campo Grande, Brazil)
Christiano França da Cunha (School of Business Administration, University of Campinas (UNICAMP), São Paulo, Brazil)
Morenise Puperi (School of Business Administration, Federal University of Mato Grosso do Sul (UFMS), Campo Grande, Brazil)

British Food Journal

ISSN: 0007-070X

Article publication date: 4 September 2017

Abstract

Purpose

The purpose of this paper is to examine the influencing factors on cattle breeders’ payment system choices using cross-sectional data collected in the Brazilian states of Mato Grosso do Sul and Rio Grande do Sul. The investigation aims to analyze the problem of value appropriation comparing the payment based on carcass index with live weight mode under the perspective of “bovine for slaughtering” as a multidimensional product with various attributes.

Design/methodology/approach

This study employs a generalized order logistic regression model in a survey with 69 cattle breeders’ interview to conduct the empirical analysis.

Findings

The empirical results show that measurement difficulties and collective actions influence farmers’ choice to a less efficient payment system in quality terms and value appropriation problems, while the trust level in the slaughterhouse pushes to a more efficient system. Furthermore, trust was presented as more important than technological aspects and long-time relationship as well as collective action corroborates to increase bargaining power and to solve conflicts. In sum, trust, measurement and bargaining power brought traditional and alternative solutions to solve conflicts such as well-designed payment indicators, collective actions and transaction costs.

Originality/value

This study used first-hand survey and proxy variables on cattle farmers’ payment system choices. Another contribution is the focus on two regions with two different payment systems in the same institutional environment in a way to suggest mechanisms of private strategies and public policy to reduce opportunistic value appropriation as well as decreasing conflict.

Keywords

Acknowledgements

The authors thank Espaço da Escrita – Coordenadoria Geral da Universidade (UNICAMP) – for the language services provided.

Citation

de Oliveira, G.M., de Queiroz Caleman, S.M., Cunha, C.F.d. and Puperi, M. (2017), "Value appropriation in Brazilian cattle industry", British Food Journal, Vol. 119 No. 9, pp. 2089-2101. https://doi.org/10.1108/BFJ-10-2016-0478

Publisher

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Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited