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Strategic plan for the Brazilian agro-industrial citrus system

Abstract:

The orange is the most cultivated, known and studied fruit in the world. Currently the Brazilian citrus industry has about 12,000 orange producers, spread over 800,000 hectares, cultivating 165 million trees and generating in 2009 a sector GDP of US$ 6.5 billion. Despite Brazilian superiority in orange juice production, the sector is going through some concerns. The study aims to present a strategic plan proposal for the Brazilian agro-industrial citrus system. To design it, the Strategic Planning and Management of Agro-industrial Systems (SPMAS) method was used. The study is characterized as exploratory nature, being a qualitative research, and analysis of secondary and primary data were collected through semi-structured in-depth interviews. The results of the study presents a specific strategic plan for the agro-industrial citrus system, in which eight macro strategic objectives for the agro-industrial citrus system have been proposed, and thirteen projects that will assist the search for strategic objectives and to mitigate the negative effects experienced by the sector and strengthen it.

Keywords:
Strategic plan; Agro-industrial system; Citriculture

Resumo:

A laranja é, das frutíferas, a mais cultivada, conhecida e estudada no mundo. Atualmente a citricultura brasileira conta com aproximadamente 12 mil produtores de laranja, espalhados por mais de 800 mil hectares, cultivando 165 milhões de árvores, gerando em 2009 um PIB setorial de US$ 6,5 bilhões. Apesar da superioridade brasileira na produção de suco de laranja, o setor vem passando por algumas preocupações. O estudo tem por objetivo apresentar uma proposta de plano estratégico para o sistema agroindustrial citrícola brasileiro. Para desenhar o plano foi utilizado o método de Planejamento e Gestão Estratégica de Sistemas Agroindustriais (GESis). O estudo caracteriza-se como de natureza exploratória, sendo uma pesquisa qualitativa. Foram realizadas análises de dados secundários e dados primários, coletados por meio de entrevistas em profundidade, baseadas em um roteiro semiestruturado. Como resultado, apresenta-se um plano estratégico específico para o sistema agroindustrial citrícola, no qual são propostos 8 macro-objetivos estratégicos para o sistema agroindustrial citrícola e 13 projetos que auxiliarão na busca de objetivos estratégicos e para mitigar os efeitos negativos vivenciados pelo setor, a fim de fortalecê-lo.

Palavras-chave:
Plano estratégico; Sistema agroindustrial; Citricultura

1 Introduction

The macro environment where organizations are inserted is increasingly competitive and globalized, with changes happening at an accelerated speed, in an environment full of innovations, new products and increased competition, which requires great dexterity, flexibility and planning from organizations to highlight and adapt to these changes.

For Heleno (2009)Heleno, G. (2009). As oportunidades do Brasil rural. Revista Brasileira de Administração, 19(70), 22., in Brazil today the application of management science is absent, especially in agribusiness and more specifically, in rural production, which results in many losses for the national agribusiness.

The systemic approach has been an important theme in management studies, where the importance of understanding the environment in which an organization operates is highlighted. When it comes to the agribusiness context, this analysis is converted into studies of Agro-industrial Systems (AiS), Networks, Supply Chain, Inter-organizational Relationships and Netchains (Conejero, 2011Conejero, M. A. (2011). Planejamento e gestão estratégica de associações de interesse privado do agronegócio: uma contribuição empírica (Tese de doutorado). Departamento de Administração, Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto, Universidade de São Paulo, Ribeirão Preto.).

In recent decades, research, methods, and issues relating to strategic management geared to companies has had major breakthroughs. According Neves (2004)Neves, M. F. (2004). Uma proposta de Modelo para o planejamento e gestão estratégica de marketing nas organizações (Tese de livre-docência). Departamento de Administração, Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto, Universidade de São Paulo, Ribeirão Preto., the strategic management of supply chains has become crucial for the implementation, development and sustainability of production chains, a fact occasioned by the advent of globalization, which has led to the growing need to produce food more efficiently and the formation of transnational production chains (Neves, 2004Neves, M. F. (2004). Uma proposta de Modelo para o planejamento e gestão estratégica de marketing nas organizações (Tese de livre-docência). Departamento de Administração, Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto, Universidade de São Paulo, Ribeirão Preto.). King et al. (2010)King, R. P., Boehlje, M., Cook, M. L., & Sonka, S. T. (2010). Agribusiness economics and management. American Journal of Agricultural Economics, 92(2), 554-570. http://dx.doi.org/10.1093/ajae/aaq009.
http://dx.doi.org/10.1093/ajae/aaq009...
state that understanding and anticipating the dynamics of the global agribusiness environment will be increasingly critical. Neves (2008)Neves, M. F. (2008). Método para planejamento e gestão estratégica de sistemas agroindustriais (GESis). Revista de Administração da Universidade de São Paulo, 43(4), 331-343. complements by stating that strategic planning is essential to address the changes in the business environment for companies and increases opportunities for agro-industrial systems.

Brazilian citriculture has approximately 12,000 orange producers spread over 800,000 hectares, cultivating 165 million trees (Instituto Brasileiro de Geografia e Estatística, 2007Instituto Brasileiro de Geografia e Estatística – IBGE. (2007). Censo Agropecuário 2006. Brasília. Recuperado em 01 de outubro de 2012, de http://www.sidra.ibge.gov.br/bda/acervo/acervo2.asp?e=v&p=CA&z=t&o=11
http://www.sidra.ibge.gov.br/bda/acervo/...
, 2011Instituto Brasileiro de Geografia e Estatística – IBGE. (2011). Produção Agrícola Municipal 2010. Brasília. Recuperado em 01 de outubro de 2012, de http://www.sidra.ibge.gov.br/bda/acervo/acervo2.asp?e=v&p=PA&z=t&o=11
http://www.sidra.ibge.gov.br/bda/acervo/...
). In 2009, the GDP of the citrus sector was US$ 6.5 billion and gross sales of the production chain were US$ 14.6 billion. Additionally, in 2009 citriculture raised approximately US$ 190 million in taxes for the Brazilian state (Neves et al., 2010 Neves, M. F., Trombin, V. G., Milan, P., Lopes, F. F., Cressoni, F., & Kalaki, R. (2010). O retrato da citricultura brasileira. São Paulo: CitrusBR.).

Citriculture generates about 230,000 jobs for the country, both direct and indirect, thus moving a payroll of R$ 676 million (Neves et al., 2010 Neves, M. F., Trombin, V. G., Milan, P., Lopes, F. F., Cressoni, F., & Kalaki, R. (2010). O retrato da citricultura brasileira. São Paulo: CitrusBR.). Furthermore, Brazilian production of orange juice represents 53% of world production and 98% of what is produced in the country is exported, giving Brazil 79% of world market share, which is to say that of each five glasses of orange juice consumed in the world, three were produced in Brazil (Neves et al., 2012Neves, M. F., Trombin, V. G., Lopes, F. F., & Kalaki, R. B. (2012). A laranja do campo ao copo. São Paulo: Atlas.).

Neves et al. (2012)Neves, M. F., Trombin, V. G., Lopes, F. F., & Kalaki, R. B. (2012). A laranja do campo ao copo. São Paulo: Atlas. discuss briefly some of the major events that have been experienced by Brazilian citriculture in the last decade. Among these facts the authors cite:

  • Drastic drop of orange juice consumption in the United States, Germany, Japan and other traditional markets;

  • Consumption of orange juice in emerging countries has increased, although on a small-scale;

  • Large increase in the launch of innovative beverages;

  • Retail concentration in large companies or purchasing centers;

  • Bottling companies, which dominate the link in packaging and retail distribution, are multinational beverage companies;

  • Due to lack of positioning, strategic vision and a harmonious understanding between links in the Brazilian chain, orange juice is sold at the same price as water in Europe for the end consumer;

  • Large increase in agricultural and industrial costs.

From the above information this research is justified by the economic and social importance of the citrus chain for Brazil, being: the promotion of income for farmers; the generation of thousands of direct and indirect jobs; in tax collection; in collaboration for the growth of the economy of the country, among other benefits of a well-established and structured chain, and because of the difficulties that this chain has faced in the last decade. Addition to the economic and social importance of the citrus industry, another factor that justifies the importance of this research is the low management application in agribusiness and agro-industrial system citrus. Thus, this research seeks to fill the academic gap on a strategic planning method by applying it to the Brazilian citrus sector. Therefore the central question which this study aims to answer is: What are the main strategic projects necessary to strengthen the Brazilian citrus sector and mitigate the negative effects experienced both in the national and international scenarios?

According to the research question, the overall objective that governs this article is to present a strategic plan for the Brazilian agro-industrial citrus system, developed from the application of the method of Strategic Planning and Management of Agro-industrial Systems (SPMAS), to propose strategic projects for mitigating the problems faced by the agro-industrial system and strengthen the sector.

2 Theoretical reference

2.1 Approaches to agro-industrial systems, supply chains and networks

Two traditional and pioneering approaches to the concept of agro-industrial systems are found in the literature, the approach developed by Golberg (1968)Golberg, R. A. (1968). Agribusiness coordination. Boston: Harvard University. and the proposal from Morvan (1985)Morvan, Y. (1985). Filière de Production, in fondaments d’economie industrielle (2. ed.). Paris: Econômica. 482 p.. Golberg (1968)Golberg, R. A. (1968). Agribusiness coordination. Boston: Harvard University. developed the theory of the Commodity System Approach (CSA) in the USA, in studies of the productive systems of citrus, wheat and soybeans. The term CSA points to a commodity system that addresses all actors involved in the production, processing and distribution of a product, emphasizing the sequence of product changes in the system. The author's merit lies in changing the focus of the analysis, once restricted only to production within the farm, then starting to look at the system as a whole, looking at the agricultural sector from the global economy, not only considering the sector in isolation.

Another traditional approach to agro-industrial systems was proposed by Morvan (1985)Morvan, Y. (1985). Filière de Production, in fondaments d’economie industrielle (2. ed.). Paris: Econômica. 482 p. in France, which defines a chain (“filière”) as a set of related operations to transform a product. The author also states that analysis of filière is an important tool to describe systems, organize the integration of research, and analyze industrial policies, companies and collective strategies. Batalha (2001)Batalha, M. O. (2001). Gestão agroindustrial (2. ed., Vol. 1, pp. 23-63). São Paulo: Atlas. complements by stating that the chain has complementary interdependence and is influenced by technology.

Zylbersztajn (2000)Zylbersztajn, D. (2000). Conceitos gerais, evolução e apresentação do sistema agroindustrial. In D. Zylbersztajn & M. F. Neves (Eds.), Economia e gestão dos negócios agroalimentares (pp. 1-21). São Paulo: Pioneira. states that an Agro-industrial System (AiS), can be defined as a succession of operations of vertically organized production activities, from production to the final consumer (Figure 1), covering the following key elements: agents, sectors, their relationship, the institutional environment and support organizations.

Figure 1
Agribusiness system and typical transactions. Source: Zylbersztajn (2000)Zylbersztajn, D. (2000). Conceitos gerais, evolução e apresentação do sistema agroindustrial. In D. Zylbersztajn & M. F. Neves (Eds.), Economia e gestão dos negócios agroalimentares (pp. 1-21). São Paulo: Pioneira..

For Batalha (2001)Batalha, M. O. (2001). Gestão agroindustrial (2. ed., Vol. 1, pp. 23-63). São Paulo: Atlas. a production chain consists of sequencing activity that turns a commodity into a product for the consumer. Its representation is made in the form of a chain of necessary operations (technical, logistical and commercial) involving the production of raw materials into final consumption of the product.

Monteiro et al. (2013)Monteiro, G. F. A., Saes, M. S. M., Caleman, S. M. Q., & Zylbersztajn, D. (2013). The role of empirical research in the study of complex forms of governance in agroindustrial systems. Revista de Economia e Sociologia Rural, 50(4), 667-682. http://dx.doi.org/10.1590/S0103-20032012000400005.
http://dx.doi.org/10.1590/S0103-20032012...
state that governance relations in agribusiness have become more complex. The authors also state that the adoption of a systems approach to agribusiness requires knowledge of the internal dynamics of each agricultural sector in conjunction with the business environment of knowledge, i.e. knowledge of organizational and institutional environments as well.

For Neves (2004)Neves, M. F. (2004). Uma proposta de Modelo para o planejamento e gestão estratégica de marketing nas organizações (Tese de livre-docência). Departamento de Administração, Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto, Universidade de São Paulo, Ribeirão Preto., the biggest challenge of supply chains is that often there are conflicting interests between the agents that compose it. However, what always requires improvement in Brazilian production chains are coordinated marketing efforts in strategic plans involving all links and agents of the chain, as well as collective actions that seek greater integration between the public and private sector.

2.2 Planning and strategic management methods

The concept of strategic planning in a more basic view is seen in Chiavenato (1979Chiavenato, I. (1979). Teoria geral da administração. São Paulo: McGraw Hill., p. 391):

Strategic planning is related to the general concept of the firm in the future, and forecasts and distributions of total resources to the opportunities offered by the market and by the products, in order to realize the company's profit potential through the chosen strategies.

Lambin (2012)Lambin, J. J. (2000). Marketing estratégico (4. ed.). Lisboa: McGraw-Hill. 756 p. emphasizes that for the success of the organization, it is necessary for strategic management and strategic planning to organize all systematic information.

In the literature are found some authors who go beyond the strategy settings, strategic management and strategic planning, and further to concepts they proposed methods for the preparation of strategic planning. Among these authors highlight Campomar (1982)Campomar, M. C. (1982). Contribuições ao estudo de planejamento e confecção de planos em marketing: uma aplicação em concessionárias de automóveis (Tese de livre-docência). Faculdade de economia, Administração e Contabilidade da Universidade de São Paulo, São Paulo., Westwood (1995)Westwood, J. O. (1995). Plano de marketing. São Paulo: Makron Books. 256 p., Las Casas (1999)Las Casas, A. L. (1999). Plano de marketing para micro e pequena empresa. São Paulo: Atlas. 156 p., Kotler (2000)Kotler, P. (2000). Administração de marketing: análise, planejamento, implementação e controle. São Paulo: Prentice Hall. 725 p., Jain (2000)Jain, S. C. (2000). Marketing planning & strategy (6. ed.). Cincinnati: Thomson Learning., Wright et al. (2000)Wright, P., Kroll, M. K., & Parnell, J. (2000). Administração estratégica: conceito (C. A. Rimoli & L. R. Esteves, Trad.). São Paulo: Atlas. 433 p., Lambin (2000)Lambin, J. J. (2012). Market-Driven Management: Strategic and operational marketing. United Kingdom: Palgrave Macmillan., Wood (2004)Wood, M. B. (2004). Marketing planning: principles into practice. Harlow: Prentice Hall. 379 p. and Neves (2004)Neves, M. F. (2004). Uma proposta de Modelo para o planejamento e gestão estratégica de marketing nas organizações (Tese de livre-docência). Departamento de Administração, Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto, Universidade de São Paulo, Ribeirão Preto. can be highlighted.

Despite such diversity, Oliveira (2006)Oliveira, D. P. R. (2006). Planejamento estratégico: conceitos, metodologia e práticas (6. ed.). São Paulo: Atlas. states that none of the methodologies are considered wrong, only more or less appropriate to the current moment experienced by companies to the internal characteristics of the company and the market in which it operates.

In this point of the study, some of the key strategic planning methods in the literature are analyzed, seeking to present them briefly (Chart 1).

Chart 1
Stages of strategic planning methods studied.

The eight studied methods bring about the specific focus of their applications, and some methods with a focus on a particular segment and others being generic methods. It was summarized in Chart 2 the main focus and / or specificity of the methods.

Chart 2
Specificity of strategic planning methods investigated.

Therefore, the choice of ChainPlan method for this research was based on its specificity for agribusiness systems and the success of their previous applications in several other agribusiness systems, including citrus. Besides this, the method has the characteristic of being flexible. Other methods studied here are not specific to agro-industrial system and focus on more strategic planning of companies, organizations, strategic marketing planning or strategic planning for industry, always with a focus on a particular agent, whereas ChainPlan method focuses on the system agroindustrial with all its agents; thus, there is a strategic planning method more accurate and specific to an agro-industrial system.

2.3 Strategic Planning and Management of Agro-industrial Systems (SPMAS) method

The method of Strategic Planning and Management of Agro-industrial Systems, SPMAS, began to be developed in 2004 by Neves (2004)Neves, M. F. (2004). Uma proposta de Modelo para o planejamento e gestão estratégica de marketing nas organizações (Tese de livre-docência). Departamento de Administração, Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto, Universidade de São Paulo, Ribeirão Preto., and since its inception has been improved. The method has been applied several times in other agro-industrial systems such as wheat, milk, sugar cane, meat and cotton. The method was also applied in agro-industrial systems abroad, as in the milk chain and wheat and milk (2010) of Uruguay. This method is consolidated in the academic world and has been published in national journals such as Journal of Management at the University of São Paulo (RAUSP) and internationally recognized by the International Food and Agribusiness Management Association (IFAMA) and the European Marketing Academy (Emac).

The method for Strategic Planning and Management of Agro-industrial Systems (SPMAS), is a five-stage process, as shown in Figure 2 below.

Figure 2
Method for Strategic Planning and Management of Agro-industrial Systems (SPMAS). Source: Neves (2008)Neves, M. F. (2008). Método para planejamento e gestão estratégica de sistemas agroindustriais (GESis). Revista de Administração da Universidade de São Paulo, 43(4), 331-343..

Step 1 is the initiative of any existing organization in the industry (usually a trade group), and may be in conjunction with research institutions and universities and / or government that has the desire to organize a planning process and a future vision for the system . Search is also at this stage, identify who the key players participating in the system, which organizations, and associations, i.e., information on important topics on the agroindustrial system studied.

Step 2, aims to describe, map and quantify the agro-industrial system. This step has been an important topic of study for the enrichment of scientific knowledge in management as it brings a systemic approach and numbers that let you see the magnitude of the agro-industrial system.

Step 3 deals with the creation of a vertical organization in the agro-industrial system. Many Agro-industrial Systems are disorganized, usually having only horizontal associations (same associations as producer associations), and hardly found vertical associations (which involve all system links). Thus, the creation of a vertical organization could contribute to the achievement of certain objectives as an organization and exchange of existing information, the discussion of the agroindustrial system strategies in a forum, representing the agribusiness system with institutions and work on a positive agenda for the sector.

Sage 4 of the SPMAS method deals with the assembly of the strategic plan for the system and is the subject of this study. Neves (2008)Neves, M. F. (2008). Método para planejamento e gestão estratégica de sistemas agroindustriais (GESis). Revista de Administração da Universidade de São Paulo, 43(4), 331-343. proposes twelve steps that can be used to prepare the Strategic Plan, as shown in Figure 3.

Figure 3
Summary of Stage 4 of the SPMAS method. Source: Neves (2008)Neves, M. F. (2008). Método para planejamento e gestão estratégica de sistemas agroindustriais (GESis). Revista de Administração da Universidade de São Paulo, 43(4), 331-343..

The twelve steps for preparation of the plan are detailed in Chart 3, with this detail, you can have the vision of what should be done in each step.

Chart 3
Detailed sequence of Step 4 of Method SPMAS.

Step 5 of the method aims at the management of priority projects and the preparation of contracts. From the Step 4 will emerge several projects and these projects should be worked out based on the traditional stages of a project, with description and analysis of objectives, actions, performance indicators, among other steps.

3 Methodological procedures

According to the study objective, which is to present a strategic plan for the Brazilian citrus agro-industrial system, this research was developed from the application of planning method and Strategic Management of Agroindustrial Systems (chain). Its about study is oriented for search and data discovery, helping the researcher to delve into the subject, therefore being a study characterized as an exploratory research, with greater focus on understanding the facts than in their actual measurement, is therefore an exploratory research and also a qualitative research (Hair et al., 2005Hair, J. F., Jr., Babin, B., Money, A. H., & Samouel, P. (2005). Fundamentos de métodos de pesquisa em administração (L. B. Ribeiro, Trad.). Porto Alegre: The Bookman. 471 p. Título original: Essentials of Business Research Methods.; Selltiz et al., 1967Selltiz, C., et al. (1967). Métodos de pesquisa nas relações sociais. São Paulo: Herder.; Lazzarini, 1997Lazzarini, S. G. (1997). Estudos de caso para fins de pesquisa: aplicabilidade e limitações do método. In: E. M. M. Farina (Ed.), Estudo de caso em Agribusiness (pp. 9-13). São Paulo: Pioneira.).

3.1 Research stages

This research was divided into three stages. The first stage consisted of the collection of secondary data, through desk research and document analysis. In the second stage, the primary data through in-depth interviews were collected. Finally, the third stage is the preparation of the strategic plan based on the information acquired in Stages 1 and 2.

3.1.1 Stage 1: Desk research and document analysis for understanding and collection of secondary data

At this stage of the research was conducted the survey of secondary data through desk research and documentary analysis. Initially it is important to distinguish bibliographic research (desk research) and document analysis. A literature review is a study of scientific sources and can be used for books, periodicals and scientific articles as a source of research. Already a documentary research has the feature of searching for information in documents that do not have scientific treatment as executive reports, releases materials, among others (Oliveira, 2007Oliveira, M. M. (2007). Como fazer pesquisa qualitativa. Petrópolis: Vozes.). Both forms of research are integrated and complete this survey.

The survey of secondary data for this research was done through scientific articles (databases, scientific journals, national and international journals), newspaper articles, journals in the industry, books, industry insights database and governments, among other sources. We sought to further analyze previous strategic plans, or even guidelines and strategic agendas of government agencies and industry. Data collection occurred from March 2014 to January 2015.

3.1.2 Stage 2: Field research: interviews with industry experts and data tabulation

At this stage a semi-structured script with open questions was organized, which sought to raise through its application to industry experts the main difficulties faced by the chain, and how in the opinion of these experts, these problems can be mitigated. The authors conducted a pre-test script, introducing him to two citrus industry experts for script validation. We opted for the semi-structured interviews because, through it, you can define the amount of information, giving respondents the possibility of discorrerem on the topic, and achieve greater direction and intervening so that the objectives are achieved, with a good technique to collect primary data from interviews with experts (Boni & Quaresma, 2005Boni, V., & Quaresma, S. J. (2005). Aprendendo a entrevistar: como fazer entrevistas em Ciências Sociais. Revista Eletrônica dos Pós-Graduandos em Sociologia Política da UFSC , 2(1), 68-80. Recuperado em 25 de fevereiro de 2012, de http://goo.gl/6lXV4
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).

For this research a non-probabilistic intentional sample of respondents was used because according to Mattar (1996)Mattar, F. N. (1996). Pesquisa de marketing: metodologia, planejamento (3. ed.). São Paulo: Atlas. 336 p., a non-probabilistic intentional sample is a population chosen by the researcher in order to obtain a sample that is satisfactory for the need for research and whose responses obtained will be of profound knowledge. Seven interviews with experts were conducted. As announced at the beginning of the research the names of the experts were not disclosed, but the choice of these specialists was related to their position in the citrus agribusiness system. seven in-depth interviews were conducted, which occurred between April and May 2014. The positions occupied by the respondents in the agroindustrial system are in Chart 4.

Chart 4
Occupation of interviewed experts.

As a result of the interviews we found information about the current scenario of the Brazilian and global citrus production and future prospects of the sector. They were also identified actions needed to strengthen the sector.

After interviews with the experts the objectives and strategic projects were consolidated by the author and then the results proposed for the chain were sent to experts to evaluate and validate. These objectives and projects were submitted to the respondents so that they evaluate and validate the proposals made by the authors. At this time it was also carried out by experts the prioritization of projects. The prioritization was carried out using two variables: Relevance, which says that the importance and impact of the project, and the urgency, which is on the need and no position can not be postponed. For each variable (Relevance and Urgency) was attributed by experts a note, ranging from 0 to 10, 0 being a project without relevance and urgency and 10 an extremely important and urgent project. The marks awarded for each variable were multiplied to obtain the final score (core) of the project.

3.1.3 Stage 3: Strategic plan elaboration

For the construction of the strategic plan, as proposed in the objectives of this research, we used the SPMAS method, developed by Neves (2008)Neves, M. F. (2008). Método para planejamento e gestão estratégica de sistemas agroindustriais (GESis). Revista de Administração da Universidade de São Paulo, 43(4), 331-343.. The SPMAS method, as described in the literature review, consists of 5 steps, of which the Step 4 is the 12 phases for the assembly of the strategic plan. Therefore, the results of this research will be presented in accordance with the 12 stages of the method.

4 Results

4.1 Introduction and understanding

Since its establishment the sector has gone through several crises and also of more profitable times. According to Neves et al. (2010) Neves, M. F., Trombin, V. G., Milan, P., Lopes, F. F., Cressoni, F., & Kalaki, R. (2010). O retrato da citricultura brasileira. São Paulo: CitrusBR., there is a clear perception that the industry is in need of permanent organization, a plan and a policy developed by all links and all links . This lack of planning, clearly defined strategies and an organization of the agro-industrial system, as well as economic and social importance of citrus production for Brazil is that justifies the motivation for this research.

4.2 Market and consumer analysis with a systems approach

In recent years world production of orange juice has been shown to have fallen. According to the USDA (United States Department of Agriculture), the last 20 years, the fall in world juice production was 11,6% (equivalent to 247,000 tons) It is largely responsible for reductions mainly Florida (325,000 tons) and the Brazilian citrus belt (48,000 tons). Even with the reductions, these two regions account for about 82% of world production of orange juice, and the Brazilian citrus belt produces about 57% of all world production and Florida 26%.

With respect to consumption, according to data provided by CitrusBR, the orange flavor had a 33% stake in relation to other fruits in 2013. In the period 2003-2013, in the juice category a diversity of flavors there was a reduction in demand for orange flavors of 17%, in the case of nectars and soft drinks, orange flavor increases the volume consumed by 30% and 73% respectively.

Analyzing data from Tetra Pak (2012)Tetra Pak. (2012). Beverages Global Market. USA. on global consumption of orange juice in FCOJ (frozen concentrated orange juice) equivalent to 66ºBrix, note that the consumption decreased 10.8%, from 2,406 000 tons in 2003 to 2,146 000 tons in 2013. This decline is most pronounced in the main consumer markets, the United States, Germany, France and the UK, which fell by 381 000 tons in consumption. Despite the major consumer markets are falling, there are still opportunities, as emerging countries are increasing their consumption of orange-flavored drinks. Only countries belonging to the BRICs (Brazil, Russia, India and China) added to Mexico increased their consumption by 71%, from 174 thousand tons in 2003 to 298,000 tons in 2013.

Continuing the theme of the dynamics of the international market, the concentration of the agro-industrial system links can be observed. According to data from Planet Retail (2014)Planet Retail. (2014). United Kingdom. Recuperado em 15 de janeiro de 2015, de http://www1.planetretail.net/
http://www1.planetretail.net/...
, the top five retailers had an average share of total sales from 48.5% retail United States, 62.9% in the UK, 72.8% in France and 75.6% in Germany. In addition to the concentration of large retail chains, there is also focus on smaller retailers. These smaller retailers are organizing into purchasing pools or purchasing organizations. Accordind to expert, this retail concentration affects orange juice negotiations, as it gives greater bargaining and negotiation power to retailers, thus it puts pressure on prices and also decreases the alternative distribution channels as they have a higher share of the sale of food and beverages.

Not only retailers, but also bottlers are involved in this time of concentration. According to data from Tetra Pak (2012)Tetra Pak. (2012). Beverages Global Market. USA., in 2009, 71% of the juice produced in the world was bought and bottled by only 30 bottlers, and of this total, the top 10 bottlers accounted for 52% of the entire market. Accordind to expert, the bottling companies are often multiproduct companies and bottlers are giving preference to products with higher turnover and better profit margins, opting for products with lower raw material cost.

In Chart 5, we can note the key facts and actions mentioned by experts in the analysis of the external environment.

Chart 5
Analysis of the opportunities, threats and actions for the agro-industrial system citrus.

Therefore, the analysis of external market, the main problems are the decline in global demand, increased competition with other products, change in juice consumption profile and the concentration of the links. According to experts, the big opportunity is in the increase of consumption in less traditional markets. We need to focus on and invest in communication in these countries so that consumption will continue to increase and also in traditional markets to resume consumption.

4.3 Analysis of the internal situation and global competitors

In the 2013/14 harvest Brazil produced 1,078 000 tons of orange juice (equivalent to 66ºBrix), about 57% of world production. In average years the country has maintained stable orange juice production, with some production peaks. On the other hand, orange processing increased by almost 35 million 40.8 Kg orange boxes, the country started to process more orange in a 120-year period. This orange processing increase and stable production of juice, reflects a decrease in industrial output in Brazil. In the season 1995/96 248 40.8 Kg orange boxes were needed to produce a ton of juice to 66°Brix, in 2013/14 282 40.8 Kg orange boxes were required (Neves et al., 2012Neves, M. F., Trombin, V. G., Lopes, F. F., & Kalaki, R. B. (2012). A laranja do campo ao copo. São Paulo: Atlas.; Associação Nacional dos Exportadores de Sucos Cítricos, 2014Associação Nacional dos Exportadores de Sucos Cítricos – CitrusBR. (2014). Recuperado em 01 de janeiro de 2014, de http://www.citrusbr.com
http://www.citrusbr.com...
; United States Department of Agriculture, 2015United States Department of Agriculture. (2015). PSD Online. Washington. Recuperado em 21 de janeiro de 2015, de http://www.fas.usda.gov/psdonline/psdQuery.aspx
http://www.fas.usda.gov/psdonline/psdQue...
).

Another important point regarding the Brazilian citrus industry is the fact that competitiveness of the Brazilian orange juice industry has declined over the years. According to the study by Neves et al. (2010) Neves, M. F., Trombin, V. G., Milan, P., Lopes, F. F., Cressoni, F., & Kalaki, R. (2010). O retrato da citricultura brasileira. São Paulo: CitrusBR., industrial average costs for processing and disposal of orange juice in Brazil jumped from US$ 347.54 per ton of FCOJ in 2003 to US$ 534.28 in 2010, an increase of 54% in the period.

Not only industrial production had cost increases, but also agricultural production faced a similar experience. According to operating cost of the orchard industry doubled in the period, with an increase of 120%, which led to the cost increase from R$ 3.30 for an orange box in 2000/01 to R$ 7.26 in 2009/10.

When analyzing the stratification productivity band, 2012/13 crop (MBAgro Consultoria, 2012MBAgro Consultoria. (2012). Metodologia de cálculo do modelo de parametrização e de divisão de riscos e retorno da cadeia citrícola brasileira. Brasília. Recuperado em 01 de setembro de 2013, de http://www.agricultura.gov.br/arq_editor/file/camaras_setoriais/Citricultura/34RO/App_Concecitrus_Citrus.pdf
http://www.agricultura.gov.br/arq_editor...
), it appears that in 59% of the average hectare yield is 594 box per hectare. Kalaki (2014)Kalaki, R. B. (2014). Uma proposta de plano estratégico para o setor citrícola brasileiro (dissertação de mestrado). Departamento de Administração, Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto, Universidade de São Paulo, Ribeirão Preto., realized profitability simulations and came to the conclusion that in only 40% of the hectares or 58.7% of the production would get positive financial results in the citrus industry.

According to experts interviewed other problems devastate the citrus industry as the high fluctuation in juice prices on the stock market, which in turn brings fluctuations in the price of the fruit to citrus producer, the low turnover rate of orchards and aging, leading to a lower productivity, lack of research and development of new products, legislative instability and protection through tariff and non tariff barriers in importing markets. Respondents also pointed to opportunities such as the operation of the internal market of orange juice is a great potential. In Chart 6, the main strengths, weaknesses and strategic actions identified by respondents were raised.

Chart 6
Analysis of strengths, weaknesses and actions for the agro-industrial system citrus.

In the analysis of the internal environment, SPMAS method brings in its recommendations important tools of analysis and points to analyze. The authors incorporated in this work, a summary table, made from the interviews, which identifies the main strengths and weaknesses of the sector and from them draw actions to mitigate the weaknesses and strengthen the forces of the agro-industrial system. The authors believe that this framework allows a quick view of the main facts that the industry experiences and propose actions that helped in the design of strategic projects.

4.4 Strategic goals for the agro-industrial system

This topic of study shows the strategic objectives that seek to mitigate the negative effects experienced by the sector and improve its strengths in seeking to take advantage of market opportunities, thus providing greater competitiveness for the sector. The objectives were defined by the authors based on external and internal analysis of the agro-industrial system and in interviews. These objectives have been assessed and validated by experts interviewed, are presented in Chart 7.

Chart 7
Strategic goals for the agro-industrial citrus system.

4.5 The strategies adopted to achieve the objectives

In this research topic are described which are the main strategies to be adopted by the Brazilian agro-industrial citrus system. Ansoff (1965)Ansoff, I. (1965). Corporate strategy: analytic approach to business policy for growth and expansion. New York: McGraw-Hill. related the concept of objectives and strategies, defining the objective as being where it wants to go and the strategy being the way to achieve the objective. Based on the theory proposed by Ansoff (1965)Ansoff, I. (1965). Corporate strategy: analytic approach to business policy for growth and expansion. New York: McGraw-Hill., Kotler (2000)Kotler, P. (2000). Administração de marketing: análise, planejamento, implementação e controle. São Paulo: Prentice Hall. 725 p. and Grant (2002)Grant, R. M. (2002). Comtemporary strategy analysis: concepts, techniques, aplications (4. ed.). USA: Blackwell Publishers., and as well the results of interviews with experts, three strategies have been defined for citriculture in Brazil: differentiation and market positioning strategy, the strategy for growth and development, and the strategy to sustain competitive advantage.

4.6 Strategic projects

The proposition of the projects was made from the analysis of external and internal environment and interviews with industry experts. These proposed strategic projects aimed at achieving the objectives set for the agro-industrial system. The projects are designed containing their specific objectives and the actions required to achieve specific objectives, as proposed in SPMAS method. The projects proposed by the authors have been assessed and validated by experts interviewed. Chart 8 presents the strategic projects, objectives and key actions.

Chart 8
Strategic projects for the agro-industrial system citrus.

The SPMAS method provides suggestions of the types of actions and information projects should and / or can contain. The suggestions made by the method covered all the facts and needs encountered by citrus agribusiness system. In this research the authors have adapted the method inserting a new strategic vector with a sustainable development project agroindustrial system.

4.7 Consolidation of strategic projects

According to the methodology the projects were prioritized for the expert according to their importance and urgency. In the sequence the final scores, the projects were ranked in descending order of score and prioritized and separated didactically into three phases, called three waves, which are equivalent to projects to be realized in the short, medium and long term. The result of this classification is shown in Figure 4.

Figure 4
Prioritization of strategic projects. Source: Elaborated by the author.

The SPMAS method does not provide clearly how projects should be prioritized. The authors chose the criteria described above, because it had good empirical results in other agroindustrial systems in which the method was applied.

Thus, with the objectives, strategies, strategic projects and prioritization of defined projects, the authors designed the Strategic Map for the agro-industrial citrus system (Figure 5).

Figure 5
Strategic Map of the Agro-industrial Citrus System 2020. Source: Prepared by the author.

5 Conclusions

The Brazilian agro-industrial citrus system is a consolidated system and important for the development of the economy. It is a clear perception that the industry is in need of permanent organization addressing all links of the agro-industrial system, a plan, and a policy developed for all links and used by all links. Peterson et al. (2000)Peterson, J., Cornwell, F., & Pearson, C. J. (2000). Chain stocktake of some australian agricultural and fishing industries. Austrália: Canberra. 90 p. emphasize that to obtain the success of the entire chain, the planning of this chain it is necessary, and all members must be involved in the planning process. Thus, this study contributes to the sector as a way of seeking greater organization and coordination in the agro-industrial system. The study also contributes to a better understanding of the system and can be a tool to assist in decision-making. This study may enable the stimulation of future strategic plans for the sector, as well as future research on the needs and necessary actions to increase the competitiveness of the agro-industrial citrus system.

The study had some limitations such as the number of interviews, because it is not a quantitative study. In future studies would be optimum to increase the sample and carry out a quantitative study. Another limitation of the study refers to the budget plan, which was not done because it was not defined by each link financial contributions to the plan's activation. In this direction, it can not get to an action plan to implement the plan since it was not raised the resources available for each link.

The SPMAS method for preparing a strategic plan used in this study proved to be a good method, thus being an important agro-industrial management systems tool. Some adjustments were necessary at certain stages, which demonstrate another strong point of the method, which has easy applicability, allowing possible adaptations. Another positive point is for the method to use primary and secondary sources, which facilitates regular review, update and continuous improvement. The methods also showed its validation empirically as its application in agro-industrial citrus system.

This study generated some contributions to improving the SPMAS method, especially when applied to the citrus industry. The method did not have the need for sustainable production projects, with specific actions for sustainability in agricultural and industrial production as well, and this study was proposed a specific project for the theme. The study also brought the frame construction of the contribution made from interviews with experts, in which the main opportunities were identified, threats, strengths and weaknesses of the agroindustrial system and also have the proposition of actions by respondents, to mitigate or strengthen the sector. In this research it was observed that the prioritization of projects using the urgency and relevance variables was approved empirically as a way to project prioritization.

In conclusion, the study generated contributions to improve the Strategic Planning and Management of Agro-industrial Systems (SPMAS) method as well as contributions to the citrus sector, providing increased knowledge and information.

  • Financial support: CNPq, Capes and FEA-RP.

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Publication Dates

  • Publication in this collection
    26 Jan 2017
  • Date of issue
    Apr-Jun 2017

History

  • Received
    06 Mar 2015
  • Accepted
    20 Jan 2016
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