Coordination in Channels of Distribution: the Case of the Orange Juice Industry
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Coordination in Channels of Distribution: The Case of the Orange Juice Industry
Ana Maria do Val
University of São Paulo FEARP - School of Business and Economics PENSA - Agribusiness Program Av dos Bandeirantes 3900 14040-900 Ribeirão Preto - SP - Brazil Phone 0055-16-6023892 Email: amdoval@uol.com.br
Marcos Fava Neves
University of São Paulo FEARP - School of Business and Economics PENSA - Agribusiness Program Av dos Bandeirantes 3900 14040-900 Ribeirão Preto - SP - Brazil Phone 0055-16-6023892 Fax 0055-16-6334411 Email: mfaneves@usp.br Webpage: www.usp.br/fearp/fava
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Coordination in Channels of Distribution: The Case of the Orange Juice Industry
Ana Maria do Val University of São Paulo FEARP - School of Business and Economics amdoval@uol.com.br Marcos Fava Neves University of São Paulo FEARP - School of Business and Economics mfaneves@usp.br
ABSTRACT This paper analyses the citrus agri-food system in Brazil based in the channels of distribution, transaction cost economics and contracts referential. Within this analysis a specific transaction was emphasized, between the industry that processes the juice and the beverage industry, with the purpose of identifying the relationships and the main characteristics that exist in the contracts involved. By the assets specificity’s analysis, it was expected that the relationships occurred via contracts or vertical integration. The personal interviews confirmed this hypothesis. Keywords: Distribution Channels, Contract Analysis, Orange Juice, Juice Brands
01 - INTRODUCTION It is known the importance of the citrus agri-food chain for the Brazilian economy and, mainly, for Sao Paulo State, where concentrates around 80% of the national production. Brazil responds for about 53% of the orange juice produced in the world and for 80% of the FCOJ (Frozen Concentrated Orange Juice) sold in the international market. It’s also important to consider the impact of the citrus sector in the job creation and in the job market:
Coordination in Channels of Distribution: The Case of the Orange Juice Industry
Ana Maria do Val
University of São Paulo FEARP - School of Business and Economics PENSA - Agribusiness Program Av dos Bandeirantes 3900 14040-900 Ribeirão Preto - SP - Brazil Phone 0055-16-6023892 Email: amdoval@uol.com.br
Marcos Fava Neves
University of São Paulo FEARP - School of Business and Economics PENSA - Agribusiness Program Av dos Bandeirantes 3900 14040-900 Ribeirão Preto - SP - Brazil Phone 0055-16-6023892 Fax 0055-16-6334411 Email: mfaneves@usp.br Webpage: www.usp.br/fearp/fava
2
Coordination in Channels of Distribution: The Case of the Orange Juice Industry
Ana Maria do Val University of São Paulo FEARP - School of Business and Economics amdoval@uol.com.br Marcos Fava Neves University of São Paulo FEARP - School of Business and Economics mfaneves@usp.br
ABSTRACT This paper analyses the citrus agri-food system in Brazil based in the channels of distribution, transaction cost economics and contracts referential. Within this analysis a specific transaction was emphasized, between the industry that processes the juice and the beverage industry, with the purpose of identifying the relationships and the main characteristics that exist in the contracts involved. By the assets specificity’s analysis, it was expected that the relationships occurred via contracts or vertical integration. The personal interviews confirmed this hypothesis. Keywords: Distribution Channels, Contract Analysis, Orange Juice, Juice Brands
01 - INTRODUCTION It is known the importance of the citrus agri-food chain for the Brazilian economy and, mainly, for Sao Paulo State, where concentrates around 80% of the national production. Brazil responds for about 53% of the orange juice produced in the world and for 80% of the FCOJ (Frozen Concentrated Orange Juice) sold in the international market. It’s also important to consider the impact of the citrus sector in the job creation and in the job market:
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