Horizontal arrangements: strategy for reducing the asymmetry information for dairy farmers in Paraná, Brazil

Brito, Marcel Moreira de; Bánkuti, Ferenc Istvan; Schiavi, Sandra Mara de Alencar; Ferreira, Maria Clara Melo; Damasceno, Júlio César; Santos, Geraldo Tadeu dos; Zambom, Maximiliane Alavarse

doi:10.1590/0103-8478cr20141724

Cited by 14 publications

(34 citation statements)

References 10 publications

(14 reference statements)

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“…No differences (P > 0.05) were found between the groups in F1 (Table 5), indicating that G1 and G2 farmers had a similar level of knowledge about milk quality standards set by NI 51 and 62. G1 farmers were expected to have a greater knowledge about institutional requirements, as observed in previous studies (Brito et al, 2015a;Mutura, Nyairo, Mwangi, & Stephen, 2014). G1 and G2 farmers differed (P < 0.05) in F2, F3, and F4 (Table 5).…”

Section: Resultsmentioning

confidence: 53%

Section: Methodsmentioning

confidence: 99%

“…Variables and their levels of measurements are described in Table 1. Common factor analysis was used to define factors representing information asymmetry among dairy producers and farmers' knowledge of institutional demands (Brito et al, 2015a). Simple classification of dairy production systems into two groups continuation Common factor analysis is an interdependence technique used to reduce a large set of variables to indicators or factors.…”

Section: Methodsmentioning

confidence: 99%

“…Despite the economic and social importance of milk production in Brazil, many obstacles hinder its progress. For instance, poor coordination between agents of the dairy sector generates conflicting relationships, risks, and uncertainties (Brito et al, 2015a). Difficulty in complying with institutional requirements such as those set by Normative Instructions (NI) nos.…”

Section: Introductionmentioning

confidence: 99%

“…The new form of transaction with the industry can generate information asymmetry and opportunism (Brito et al, 2015a;Magalhães, 2007), thereby reducing the competitiveness 4 of dairy farmers. Participation in farmers' organizations, which stimulate horizontal agreements and arrangements, can help counteract these problems (Brito et al, 2015a;Magalhães, 2007). Farmers' organizations include production associations, cooperatives, and horizontal collaborations.…”

Section: Introductionmentioning

confidence: 99%

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Information asymmetry among dairy producers in Paraná, Brazil

Casali

Mendonça

Brito

et al. 2020

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Highlights:Farmers' organizations improve access to market information on milk quality. Farmers' organizations improve access to technical information. Buyer-seller relationships are strengthened by farmers' organizations. Farmers' organizations improve access to information on milk quality regulations.Semina: Ciências Agrárias, Londrina, v. 41, n. 1, p. 293-304, jan./fev. 2020Casali, M. et al. AbstractMilk production has great social and economic importance in Paraná, Brazil. However, dairy farmers have abandoned the activity over the past few years because of difficulties in meeting institutional and market demands for increased milk production and quality. Information asymmetry between dairy farmers and market agents may be contributing to this scenario. It occurs when one agent in a transaction has more or better information than another. Information asymmetry can encourage opportunistic behavior and negatively affect the relationship between parties. These problems can be minimized or resolved by horizontal collaboration, such as participation in farmers' organizations, cooperatives, or associations. The aim of this study was to assess the extent of information asymmetry among dairy farmers and investigate whether participation in farmers' organizations strengthens buyer-seller relationships and stimulates compliance with milk quality standards. A total of 204 semi-structured questionnaires were applied to head farmers of dairy production systems in Paraná. Two sets of variables were analyzed: variables related to socio-economic and production characteristics and variables related to transactions between farmers and the dairy industry and the head farmer's knowledge about milk quality regulations.The second set of variables was subjected to common factor analysis, which generated four factors: F1, knowledge about institutional requirements; F2, technical support from the buyer; F3, technical knowledge; and F4, level of trust in the buyer. Dairy farmers who did not participate in farmers' organizations operated under greater information asymmetry and were disadvantaged with regard to F2, F3, and F4 (P < 0.05). Participation in horizontal collaborations can help farmers survive and thrive in the dairy activity.

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Section: Resultsmentioning

confidence: 53%

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%