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Consolidation, Multinationalisation, and Competition in Brazil: Impacts on Horticulture and Dairy Products Systems

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  • Elizabeth M. M. Q. Farina

Abstract

This article examines the rapid consolidation and multinationalisation of the supermarket sector in Brazil over the past decade. The impact of this on the horticulture marketing system is shown to include a sharp reduction in the role of traditional wholesale markets, the rise of specialised wholesalers and distribution centres, and the beginnings of contracts with growers. There have been similar changes in the dairy processing sector, with huge impacts on the dairy products systems leading to substantial concentration ‘upstream’ in the chain. For small farms and firms in both sectors, there is a need for substantial improvements in organisation and technology to face these challenges, and the government has a role in helping them make this adjustment.

Suggested Citation

  • Elizabeth M. M. Q. Farina, 2002. "Consolidation, Multinationalisation, and Competition in Brazil: Impacts on Horticulture and Dairy Products Systems," Development Policy Review, Overseas Development Institute, vol. 20(4), pages 441-457, September.
    • Handle: RePEc:bla:devpol:v:20:y:2002:i:4:p:441-457
    DOI: 10.1111/1467-7679.00182
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    Cited by:

    1. Novo, André Monteiro & Slingerland, Maja & Jansen, Kees & Kanellopoulos, Argyris & Giller, Ken E., 2013. "Feasibility and competitiveness of intensive smallholder dairy farming in Brazil in comparison with soya and sugarcane: Case study of the Balde Cheio Programme," Agricultural Systems, Elsevier, vol. 121(C), pages 63-72.
    2. Tschirley, David L. & Muendo, Kavoi Mutuku & Weber, Michael T., 2004. "Improving Kenya's Domestic Horticultural Production and Marketing System: Current Competitiveness, Forces of Change, and Challenges for the Future Volume II: Horticultural Marketing," Working Papers 202671, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    3. Roy, Devesh & Thorat, Amit, 2008. "Success in High Value Horticultural Export Markets for the Small Farmers: The Case of Mahagrapes in India," World Development, Elsevier, vol. 36(10), pages 1874-1890, October.
    4. Tschirley, David L. & Ayieko, Miltone W. & Hichaambwa, Munguzwe & Goeb, Joey & Loescher, Wayne, 2010. "Modernizing Africa’s Fresh Produce Supply Chains without Rapid Supermarket Takeover: Towards a Definition of Research and Investment Priorities," Food Security International Development Working Papers 93030, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. Bjorn Van Campenhout & Bart Minten & Johan F. M. Swinnen, 2021. "Leading the way – foreign direct investment and dairy value chain upgrading in Uganda," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 607-631, July.
    6. Markelova, Helen & Meinzen-Dick, Ruth & Hellin, Jon & Dohrn, Stephan, 2009. "Collective action for smallholder market access," Food Policy, Elsevier, vol. 34(1), pages 1-7, February.
    7. Best, Sarah. & Mamic, Ivanka., 2008. "Global agri-food chains : employment and social issues in fresh fruit and vegetables," ILO Working Papers 994299953402676, International Labour Organization.
    8. repec:ilo:ilowps:429995 is not listed on IDEAS
    9. Humphery-Jenner, Mark & Powell, Ronan, 2014. "Firm size, sovereign governance, and value creation: Evidence from the acquirer size effect," Journal of Corporate Finance, Elsevier, vol. 26(C), pages 57-77.
    10. Vries, Gaaitzen J. de, 2008. "Did Liberalization Start A Retail Revolution In Brazil?," GGDC Research Memorandum GD-105, Groningen Growth and Development Centre, University of Groningen.
    11. Buzby, Jean C. & Mitchell, Lorraine, 2006. "Private, National, and International Food-Safety Standards," Journal of Food Distribution Research, Food Distribution Research Society, vol. 37(1), pages 1-6, March.
    12. Caetano Luiz Beber & Greta Langer & Johannes Meyer, 2021. "Strategic Actions for a Sustainable Internationalization of Agri-Food Supply Chains: The Case of the Dairy Industries from Brazil and Germany," Sustainability, MDPI, vol. 13(19), pages 1-18, September.
    13. Heath Henderson, 2014. "Structural transformation and smallholder agriculture: an information-theoretic analysis of the Nicaraguan case," Agricultural Economics, International Association of Agricultural Economists, vol. 45(4), pages 443-458, July.
    14. repec:dgr:rugggd:gd-105 is not listed on IDEAS
    15. Tschirley, David L. & Hichaambwa, Munguzwe, 2010. "The Structure and Behavior of Vegetable Markets Serving Lusaka: Main Report," Food Security Collaborative Working Papers 93006, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    16. Best, Sarah. & Mamic, Ivanka., 2008. "Voluntary social initiatives in fresh fruit and vegetable value chains," ILO Working Papers 994312573402676, International Labour Organization.
    17. Vandeplas, Anneleen, 2011. "Multinationals or Cooperatives: Does it Matter to Farmers? - A Study of the Dairy Sector in Punjab (India)," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115545, European Association of Agricultural Economists.
    18. Mehmet Arda, 2006. "Food Retailing, Supermarkets and Food Security: Highlights from Latin America," WIDER Working Paper Series RP2006-107, World Institute for Development Economic Research (UNU-WIDER).
    19. Wang, Honglin & Dong, Xiaoxia & Rozelle, Scott & Huang, Jikun & Reardon, Thomas, 2009. "Producing and Procuring Horticultural Crops with Chinese Characteristics: The Case of Northern China," World Development, Elsevier, vol. 37(11), pages 1791-1801, November.
    20. repec:ilo:ilowps:431257 is not listed on IDEAS
    21. Tandon, Sharad & Landes, Maurice R. & Woolverton, Andrea, 2011. "The Expansion of Modern Grocery Retailing and Trade in Developing Countries," Economic Research Report 262237, United States Department of Agriculture, Economic Research Service.
    22. Paola Perez-Aleman, 2011. "Collective Learning in Global Diffusion: Spreading Quality Standards in a Developing Country Cluster," Organization Science, INFORMS, vol. 22(1), pages 173-189, February.

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