Suggestion for studying of short agro-food chains: Sheep-breading in Brazil

Abstract

Short agrofood chains are organizational and commercialized types for the approach of producers and consumers. Theoretical foregrounding is necessary to investigate higher economic performance. Current paper proposes a study method on short chains by employing the Economy of Transaction Costs, Measuring Costs Economy, Resources-based View and Entrepreneurship Theory. The method was then applied to the study of milk sheep-breeding in Brazil. The agroindustrial system of sheep milk in Brazil is organized vertically to avoid high transaction costs in incipient and poorly structured markets. Probably this is not a transitory factor since the links between agents are prone to be strengthened. Efforts are also needed for improvements and innovations in processes and products due to the fledging condition of the chain. Results show that the study model analyzes a short agroindustrial chain and characterizes it to provide strategies in management and coordination to improve the system for sustainable competitive advantages.