Abstract

Complementarity is an interesting approach to explain technology adoption. Taking account the other activities the farm performs in its production strategy can help understanding the decision on the adoption of new agricultural technology. This paper aims to evidence the existence of synergic effect resulting from the joint adoption of feedlot and traceability certification of beef cattle in Brazil. A sample of 84 beef cattle farms provided data to test hypotheses by using an OLS regression model. A measure of performance – revenue – is regressed on variables representing both isolated and joint adoption of capital-intensive production system and traceability. The results suggest the existence of synergic effect when joint adoption takes place. Joint adoption is influenced by a set of management practices, such as forward contracts, training of employees and zootechnical performance control, which are shared by both capital-intensive production systems and traceability.

Highlights

  • Beef cattle production in Brazil is marked by great diversity and technological heterogeneity between farms

  • Brazilian beef export growth has brought challenges related to food safety

  • If feedlot and traceability are complementary, the synergic effect should be apparent in farm performance

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Summary

Introduction

Beef cattle production in Brazil is marked by great diversity and technological heterogeneity between farms. While some farmers adopt capital-intensive production systems and have high yields per area and/or per animal, others adopt extensive systems with low technical efficiency (Zylbersztajn & Machado Filho, 2003; Souza Filho et al, 2010). Such heterogeneity in beef cattle production in Brazil has been justified, historically, by the abundance of land and by the absence of economic and institutional pressures to increase yields. The diffusion of capital-intensive production systems with higher yields has increased among Brazilian beef cattle farmers

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