Shaping the sustainable supply chain of organic milk in Brazil

Abstract

The aim of this paper is to contribute to the discussion about how a sustainable supply chain is implemented, and its effects on suppliers. The sustainable supply chain and the concept of upgrading were used to analyze the proposed phenomenon. One in-depth case study was conducted, based on fourteen interviews with multiple stakeholders involved in the process of converting the traditional milk production chain into the organic system of one of the global leaders in the food industry, and the largest buyer of raw milk in Brazil. This empirical effort allows us to examine how a focal company shapes the organic milk supply chain, and the effects this process bears on farmers, highlighting theoretical contributions which also relate to the paper’s contributions. The outcomes indicate that private governance shapes sustainable supply chain through captive and relational links leading to social upgrading.