STRUCTURE, CONDUCTAND GOVERNANCE IN MILK PRODUCTION CHAIN: A MULTICASE STUDY IN RIO GRANDE DO SUL

Abstract

The changes in institutional and governmental level that occurred in the dairy industry from 1990 created transformations in the private sphere, with an increase in the number of processing companies and levels of competition between them for the purchase of the produced milk on the rural properties from Rio Grande do Sul .However, this competition isn't uniform in all regions from RS, being that in some regions predominate monopsonies , and in others, competitive oligopsonies. This research aimed to identify and analyze, in different regions from RS, which are and how the market structures of  raw milk have been developing, and which are the implications on the behavior of the economic agents (producers and industries) and about the coordination of the dairy production chain. It was used 2 researches methods: a  survey of the existing market structure in the different milk producing region in RS, based on the number of the agribusinesses processors and the  analysis in depth of revealing cases  that represent contrasts with each other. As a result, we can identify two different factors market in milk production chain in RS, the competitive oligopsony and monopsony. If was found a direct relationship between market structures, behavior of agents and structures of governance.