New configurations in Brazilian agribusiness: rural warehouse condominiums

Abstract

Purpose

The purpose of this paper is to analyze the development of rural warehouses condominiums (or “condos”) as new rural configurations in the Brazilian agribusiness from the perspective of the theory of collective action.

Design/methodology/approach

A systematic literature review was complemented with multiple case studies based on interviews and direct observation. Content analysis was used to interpret the secondary and primary data.

Findings

Rural warehouse condos can be characterized as a collective action which is a new business model in Brazilian agribusiness. This new initiative has several advantages: reduction of the warehouse deficit and other logistical bottlenecks; strategic commercialization of production; reduction of logistical costs; inclusion of smallholders in the economy and, consequently, the generation of income for smallholders and their participation in the market.

Research limitations/implications

The study used a qualitative approach and findings and discussion are inherently interpretative.

Social implications

Understanding the organization of rural warehouse condos supports the inclusion of smallholding farmers and income generation. This creates a social benefit through rural growth and economic development. Some constraints related to the lack of public policies, specific credit lines in financial institutions, the problem of non-regularized rural areas, lack of transparency and conflicts among the members can limit expansion.

Originality/value

Rural warehouse condos are expanding mainly in the south region of Brazil, where smallholders are concentrated. In this new configuration, they can engage in an association to obtain several benefits, such as reduced logistics costs, better access to financing and increased bargaining power with suppliers. As this research dealt with a relatively new and poorly studied topic, it contributes to the development of new studies to map innovative warehousing practices.

Citation

Filippi, A.C.G., Guarnieri, P., Carvalho, J.M., Reis, S.A. and da Cunha, C.A. (2020), "New configurations in Brazilian agribusiness: rural warehouse condominiums", Journal of Agribusiness in Developing and Emerging Economies, Vol. 10 No. 1, pp. 41-63. https://doi.org/10.1108/JADEE-12-2018-0178