Geographical milk redistribution in Paraná State, Brazil: Consequences of institutional and market changes

Abstract

This study filled a gap in literature by analyzing how institutional and market changes that have occurred since the 1990s in Brazil influenced the geographical distribution of milk production in Paraná State, Brazil. In addition, this study discussed the formation of new production frontiers and their impacts on the dairy actor's production chain. Data concerning productive and economic variables of the 399 municipalities in Paraná state were used to generate an indicator of dairy activity through Common Factor Analysis. Besides that, we perform clusters analyzes to define groups of municipalities of low, medium, and high importance. The geographical redistribution of milk production was discussed considering New Institutional Economy, Transaction Cost Economics, and von Thünen's theories. The results indicated that intrinsic characteristics of milk production systems, market characteristics, and institutional demands encouraged the shifting of production from the north, toward the south of Paraná State, redefining new the frontiers of milk production. Therefore, new public policies should be defined, aimed at providing financial and technical support for the production and processing of milk at the new frontiers. It is also necessary to seek the logistic adequacy for the collection and distribution of dairy products in these regions.