Mechanisms of property rights protection in dairy agro-industrial systems: A study in Paraná, Brazil, and old Midi-Pyrénées, France¹

Abstract

Purpose:

This study aims to understand the mechanisms of property rights guarantee in the dairy agro-industrial system (DAGS) in Paraná, Brazil, and in the old Midi-Pyrénées region, France.

Originality/value:

From a complementary perspective of Transaction Cost Theory and Measurement Cost Theory, the proposal in the study is that the use of mechanisms to guarantee property rights through safeguards, parameters, measurement, agreements, or litigation contributes to the transaction of differentiated products and also to the protection of these rights, favoring systems improvement.

Design/method/approach:

A descriptive qualitative study was done, encompassing 25 semi-structured interviews with producers, processors, and key agents of the DAGS in the state of Paraná in Brazil and in the old Midi-Pyrénées region of France, in 2016 and 2017. Qualitative content analysis was performed with NVivo Pro software.

Findings:

It was identified that in France and in the central-eastern and western regions of Paraná, the use of complementary protection property rights mechanisms (safeguards, parameters, measurement, agreements, or litigation) allows higher quality milk transactions and reinvestments in production by agents, contributing to system improvement. In the northern region of Paraná, the limited use of property rights mechanisms (verbal agreement, measurement, unreliable information sharing, and the absence of ex post protection) allows minimal quality milk trans actions and restricts reinvestments in production, limiting systems improvement.

Keywords:
property rights; protection mechanisms; dairy agro-industrial system; Transaction Cost Economics; Measurement Cost Economics