Dairy cooperatives marketing strategy determinants in Brazil and Australia: case studies

Authors

DOI:

https://doi.org/10.5585/exactaep.2021.16883

Keywords:

Agribusiness, Cooperativismo, Competitiveness.

Abstract

Dairy agribusiness is distinguished by its high concentration in processing stages. Under this scenario, adding value to production and differentiation have been considered as the most adequate strategies for business sustainability in the dairy context, including cooperatives. This paper attempted to analyze the determining factors for two dairy cooperatives actors, one in Brazil and one in Australia, to opt for the supply model in developed and developing countries. Data were obtained by use of semi-structured interviews with different actor strata and document analysis. The results showed that the choice for this type of structuring is due to previously strategic frustrations, corroborating organizational life cycle. However, cooperative exposure level to the context of threats to competitive forces can be reduced by the emergence of environmental microstructural institutional bases, with emphasis on contractual binding.

 

Downloads

Download data is not yet available.

Author Biographies

Gustavo Leonardo Simão, Universidade Federal do Espírito Santo – UFES

Doutor em Administração - Área de Concentração em Estratégia, Marketing e Inovação pela Universidade Federal de Lavras/MG.

Luiz Marcelo Antonialli, Universidade Federal de Lavras

Doutor em Administração pela Universidade de São Paulo (USP). Professor do Departamento de Administração e Economia da Universidade Federal de Lavras/MG.

References

Adizes, I. (1989). Corporate Lifecycles: How and Why Corporations Grow and Die and What to Do About It. Paramus: Prentice Hall.

Batalha, M. O. (1997). Gestão Agroindustrial. São Paulo: Atlas.

Beber, C. L., Carpio, A. F. R., Almadani, M. I., & Theuvsen, L. (2019). Dairy supply chain in Southern Brazil: barriers to competitiveness. International Food and Agribusiness Management Review, 22(5), 651-673. https://doi.org/10.22434/IFAMR2018.0091

Bekkumm, O. V. (2001) Cooperatives Models and Farm Policy Reform – Exploring Patterns in Structure-Strategy Matches of Dairy Cooperatives in Protected vs. Liberalized Markets. Breukelen: The Netherlands Institute for Cooperatives Entrepreneurship.

Chaddad, F. R. (2007). Cooperativas no agronegócio do leite: mudanças organizacionais e estratégicas em respostas à globalização. Organizações Rurais e Agroindustriais, 9(1), 69-78.

Chaddad, F., & Iliopoulos, C. (2013). Control rights, governance, and the costs of ownership in agricultural cooperatives. Agribusiness, 29(1), 3-22. https://doi.org/10.1002/agr.21328

Chandler, A. D. (1990). Strategy and structure: Chapters in the history of the industrial enterprise (Vol. 120). MIT press.

Chattopadhyay, P., Glick, W. H., & Huber, G. P. (2001). Organizational actions in response to threats and opportunities. Academy of Management Journal, 44(5), 937-955. https://doi.org/10.5465/3069439

Collantes, F. (2019). From organized to disorganized capitalism? Market versus nonmarket coordination in Spain's dairy chain. Journal of Agrarian Change, 19(2), 295-318. https://doi.org/10.1111/joac.12291

Cook, M. L. (1994). The role of management behavior in agricultural cooperatives. Journal of Agricultural Cooperation, 9, 42-58. DOI: https://doi.org/10.22004/ag.econ.46403

Cook, M. L. (1995). The future of US agricultural cooperatives: A neo-institutional approach. American journal of agricultural economics, 77(5), 1153-1159. https://doi.org/10.2307/1243338

Cook, M. L. (2018). A life cycle explanation of cooperative longevity. Sustainability, 10(5), 1586. https://doi.org/10.3390/su10051586

Cook, M. L., & Burress, M. J. (2009). A cooperative life cycle framework. Unpublished manuscript. Columbia, Mo.: University of Missouri Dept. of Agricultural Economics.

Cook, M. L., & Chaddad, F. R. (2004). Redesigning cooperative boundaries: The emergence of new models. American Journal of Agricultural Economics, 86(5), 1249-1253. https://doi.org/10.1111/j.0002-9092.2004.00673.x

D'Aunno, T., Sutton, R. I., & Price, R. H. (1991). Isomorphism and external support in conflicting institutional environments: A study of drug abuse treatment units. Academy of management journal, 34(3), 636-661. https://doi.org/10.5465/256409

Derville, M., & Fink-Kessler, A. (2019). Institutional insights into contract theories: A comparative approach to the French and German dairy industries under liberalization. The European journal of comparative economics, 16(1), 81-104. Disponível em: https://ideas.repec.org/a/liu/liucej/v16y2019i1p81-104.html

Draganska, M., Klapper, D., & Villas-Boas, S. B. (2010). A larger slice or a larger pie? An empirical investigation of bargaining power in the distribution channel. Marketing Science, 29(1), 57-74. https://doi.org/10.1287/mksc.1080.0472

Franken J., Cook M. (2019) Horizon and Portfolio Investment Constraints in Agricultural Cooperatives. In: Windsperger J., Cliquet G., Hendrikse G., Srećković M. (eds) Design and Management of Interfirm Networks. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-030-29245-4_10

Fulton, M., & Giannakas, K. (2013). The future of agricultural cooperatives. Annual Review of Resource Economics, 5(1), 61-91. https://doi.org/10.1146/annurev-resource-091912-151928

Grashuis, J. (2018). An exploratory study of cooperative survival: Strategic adaptation to external developments. Sustainability, 10(3), 652. https://doi.org/10.3390/su10030652

Grashuis, J., & Cook, M. (2018). An examination of new generation cooperatives in the upper midwest: successes, failures, and limitations. Annals of Public and Cooperative Economics, 89(4), 623-644. https://doi.org/10.1111/apce.12211

Gyem, T. (2015). Identifying factors responsible for success of farmer cooperatives in Australia: Lessons and Experiences from the case study of NORCO cooperative (Master of Agribusiness). The University of Queensland, Queensland, Australia.

Iliopoulos, C., & Valentinov, V. (2018). Cooperative longevity: Why are so many cooperatives so successful? Sustainability 2018, 10(10), 3449; https://doi.org/10.3390/su10103449

Juliá-Igual, J. F., Meliá-Martí, E., & García-Martinez, G. (2012). Strategies developed by leading EU agrifood cooperatives in their growth models. Service Business, 6(1), 27-46. https://doi.org/10.1007/s11628-011-0129-3

Krogt, D. V. D., Nilsson, J., & Høst, V. (2007). The impact of cooperatives' risk aversion and equity capital constraints on their inter‐firm consolidation and collaboration strategies—with an empirical study of the European dairy industry. Agribusiness, 23(4), 453-472. https://doi.org/10.1002/agr.20140

Lewis, G. (2006). The Democracy Principle: Farmer Co-operatives in Twentieth-Century Australia. Wamboin: Gary Lewis.

Mazon, M. S. (2016). O mercado do leite e agricultores: a qualidade em questão. Política & Sociedade, 15(33), 46-67. https://doi.org/10.5007/2175-7984.2016v15n33p46

Porter, M. E. (1980). Competitive strategy: Techniques for analyzing industries and competitors. New York: The Free Press.

Reynolds, P., & Miller, B. (1992). New firm gestation: Conception, birth, and implications for research. Journal of business venturing, 7(5), 405-417. https://doi.org/10.1016/0883-9026(92)90016-K

Simão, G. L., Souza Netto, T. C. C., & Antonialli, L. M. (2016). Distinções estruturais, disfunções e pressões institucionais em cooperativas lácteas centrais–análise sob a perspectiva dos gestores. Exacta, 14(3), 449-465. https://doi.org/10.5585/exactaep.v14n3.6448

Skevas, T., & Grashuis, J. (2020). Technical efficiency and spatial spillovers: Evidence from grain marketing cooperatives in the US Midwest. Agribusiness, 36(1), 111-126. https://doi.org/10.1002/agr.21617

Valentinov, V. (2007). Why are cooperatives important in agriculture? An organizational economics perspective. Journal of institutional Economics, 3(1), 55-69. https://doi.org/10.1017/S1744137406000555

Published

2022-01-21

How to Cite

Simão, G. L., & Antonialli, L. M. (2022). Dairy cooperatives marketing strategy determinants in Brazil and Australia: case studies. Exacta, 20(1), 95–116. https://doi.org/10.5585/exactaep.2021.16883