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Building Supply Systems from Scratch: The Case of the Castor Bean for Biodiesel Chain in Minas Gerais, Brazil

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  • Watanabe, Kassia
  • Zylbersztajn, Decio
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    Abstract

    The present study contributes to identifying obstacles to the development of a local biodiesel agro-industrial system (AGS) in the state of Minas Gerais, Brazil. The research questions are: “How do local social characteristics influence the organizational effectiveness of agents involved in the joint production effort?”; and “How can the institutional arrangement of biodiesel production be described?” The method adopted is the case study, focused on family farmers served by the Family Farmers Rural Extension and Technical Assistance Company (EMATER). This state organization introduced castor beans (Ricinus communis L.) to family farmers as an alternative crop to supply a processing plant (Darcy Ribeiro Biodiesel Plant—DRBP) in northern Minas Gerais state, Brazil. These family farmers are not horizontally organized, and sign individual contracts with DRBP. The paper concludes that the primary obstacle to developing the biodiesel AGS with castor beans in Minas Gerais is the lack of horizontal organization among family farmers.

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    Bibliographic Info

    Article provided by International Center for Management, Communication, and Research in its journal International Journal on Food System Dynamics.

    Volume (Year): 03 (2012)
    Issue (Month): 2 ()
    Pages:

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    Handle: RePEc:ags:ijofsd:144856

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    Web page: http://131.220.45.179/ojs/index.php/fsd
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    Related research

    Keywords: Biodiesel production system; Agro-industrial System (AGS); Institutional Arrangement; Castor bean; Minas Gerais; Brazil; Family Farmers; Agribusiness; Farm Management; Food Consumption/Nutrition/Food Safety; Industrial Organization; Research and Development/Tech Change/Emerging Technologies; Research Methods/ Statistical Methods;

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    1. da Silva César, Aldara & Otávio Batalha, Mário, 2010. "Biodiesel production from castor oil in Brazil: A difficult reality," Energy Policy, Elsevier, vol. 38(8), pages 4031-4039, August.
    2. Barzel,Yoram, 1997. "Economic Analysis of Property Rights," Cambridge Books, Cambridge University Press, number 9780521597135.
    3. Elinor Ostrom, 2008. "Institutions And The Environment," Economic Affairs, Wiley Blackwell, vol. 28(3), pages 24-31, 09.
    4. Poulton, Colin & Dorward, Andrew & Kydd, Jonathan, 2010. "The Future of Small Farms: New Directions for Services, Institutions, and Intermediation," World Development, Elsevier, vol. 38(10), pages 1413-1428, October.
    5. Williamson, Oliver E., 2005. "Transaction cost economics and business administration," Scandinavian Journal of Management, Elsevier, vol. 21(1), pages 19-40, March.
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