Should I go to court? An assessment on the role of the Judiciary in disputes between cattle raisers and meatpackers in Brazil

Caleman, Sílvia Morales de Queiroz; Monteiro, Guilherme Fowler de Ávila

doi:10.5700/rausp1083

Cited by 6 publications

(7 citation statements)

References 12 publications

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“…We identified that the entry into the cooperative provides a reduction of uncertainties regarding the guarantee of receipt. This is a behavioral uncertainty characteristic of the conventional beef system, as already identified by Caleman & Monteiro (2013).…”

Section: Attributes and Dimensions Involved In The Transactionmentioning

confidence: 80%

Governance structures in cooperative slaughterhouses: a study on the chain of differentiated beef in the state of Paraná

Pereira

Guimarães

Santos

et al. 2022

Rev. Econ. Sociol. Rural

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This study sought to discuss the governance structures adopted between livestock producers and their cooperative slaughterhouses in the chain of differentiated beef in the state of Paraná. The theoretical basis used was the Transaction Cost Economics and Measurement Costs Economics, complemented by the specificities of cooperatives. We conducted interviews with three key agents and eleven representatives of six cooperative slaughterhouses operating in this system. As result, we observed that the cooperatives have similar objectives and requirements, although there are differences in the levels of formality or flexibility. Although transactions are recurrent and have been successful, they involve a high asset specificity, depend on subjective measurements, and are still exposed to market uncertainties, which leaves room for the generation of conflicts and disincentives to quality. Despite this, the relational and reputational aspects associated with trust and partnership between the parties are elements that enable reduced transaction and measurement costs in these structures. At first, the measurements conducted by the cooperatives had an important role in the construction of trust between the parties and for value distribution. In a second moment, the trust built enabled the reduction of measurement costs.

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Section: Attributes and Dimensions Involved In The Transactionmentioning

confidence: 80%

Governance structures in cooperative slaughterhouses: a study on the chain of differentiated beef in the state of Paraná

Pereira

Guimarães

Santos

et al. 2022

Rev. Econ. Sociol. Rural

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show abstract

“…The level of education ( X ) 5 – categorical) was measured by the following categories: “elementary; high school; college; and postgraduate.” Due to aggregation of observations within categories, we used a dummy identifying a level up to college (0) or greater than college (1): (a) up to college (62 farmers) and postgraduate (26 farmers). The theoretical foundation of this variable derives from the logic of Barzel (1982, 2005), Caleman and Monteiro (2013) and Oliveira et al (2017).…”

Section: Methodsmentioning

confidence: 99%

“…Caleman and Monteiro (2013) observed that the level of education of cattle breeders may also influence the slaughterhouses’ information asymmetry advantages. According to these authors, the education level of this type of farmer affects the emergence of disputes and how conflicts with meatpacking firms are solved.…”

Section: Theoretical Foundationmentioning

confidence: 99%

Information asymmetry: the case of cattle supply transaction in Brazil

Oliveira

Cunha

Caleman

et al. 2019

BFJ

Self Cite

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Purpose The purpose of this paper is to investigate information asymmetry in cattle supply transaction in Brazil. While the literature traditionally explores the seller’s information asymmetry advantages, the authors, in turn, draw attention to buyer’s role. This paper aims to show what farmer characteristics present negative correlation with slaughterhouses’ information asymmetry advantages. By slaughterhouses’ advantages, the authors refer to slaughterhouses’ opportunistic appropriation of value due to hidden information, such as quality measurement and remuneration of difficult-to-measure attributes. In doing so, this paper addresses the following research question: what are the farmer’s characteristics with negative correlation with slaughterhouses’ information asymmetry advantages? Design/methodology/approach This paper employs a logit model regression on a survey of 89 Brazilian cattle breeders. Drawing on transaction cost economics, this study empirically evaluates farmers’ technology level, level of education, family tradition, farm size and efforts to collect price information, to test which of these characteristics present negative correlation with slaughterhouses’ information asymmetry advantages. Findings The results illustrate that the cattle breeders’ level of education is negatively correlated with buyers’ information asymmetry advantages. Additionally, the authors find a controversial result presenting efforts to collect price information as positively correlated with this kind of information asymmetry advantages. Farmer’s farm size, family tradition and the level of technology were not influential. These findings suggest that a possible value appropriation from buyers’ information asymmetry is a problem for several types of producers, even varying size, family tradition in the activity or transaction costs to collect price information (e.g. lack of transparency). Initiatives should try to reduce this problem to these farmers to avoid value appropriation resulting from information asymmetry problems, especially in the lack of transparency. Originality/value This paper adopts a survey about information asymmetry in cattle supply transactions in Brazil, which is well known as one of the most relevant producer and consumer of meat. The main contribution is to shed light on the understanding of buyers’ information asymmetry advantages in farmer-slaughterhouse transactions to avoid potential conflicts. Given some singularities of the Brazilian cattle industry, the authors can empirically test buyers’, not sellers’, information asymmetry advantages.

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“…In fact, the World Bank Enterprise Survey indicates that less than 20% of the surveyed firms in Brazil believe that the court system is fair, impartial, and uncorrupted (The World Bank, 2010). Therefore, despite occasional efforts to make the Brazilian judicial system more efficient (Lichand and Soares, 2014), lack of confidence in the system is still widespread (Caleman and Monteiro, 2013).…”

Section: The Brazilian Patent Systemmentioning

confidence: 99%

Neither at the cutting edge nor in a patent-friendly environment: Appropriating the returns from innovation in a less developed economy

Barros

2021

Research Policy

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Should I go to court? An assessment on the role of the Judiciary in disputes between cattle raisers and meatpackers in Brazil

Cited by 6 publications

References 12 publications

Governance structures in cooperative slaughterhouses: a study on the chain of differentiated beef in the state of Paraná

Governance structures in cooperative slaughterhouses: a study on the chain of differentiated beef in the state of Paraná

Information asymmetry: the case of cattle supply transaction in Brazil

Neither at the cutting edge nor in a patent-friendly environment: Appropriating the returns from innovation in a less developed economy

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