Abstract

While facing a growing domestic demand of milk and milk products, the Brazilian dairy industry is far behind in terms of competitiveness and sustainability when compared to other national agricultural sectors. Nonetheless, in Germany the leading dairy companies mainly pushed by a saturated domestic market, EU agriculture policy oriented to liberalization of markets, and increasing political and social demands are looking at markets beyond EU. In the context of the increasing globalization of agricultural supply chains, the issue of sustainability gains particular importance in companies’ internationalization strategies. By using expert interviews, this paper investigates strategies for integrating Brazilian and German dairy supply chains and how both sides can benefit from this situation also in terms of sustainability. The analyses show that problems of the industries in both countries basically complement each other at different levels and positive synergies for both sides exist when it comes to sustainable issues, positioning themselves competitively for the future and creating a good position for conquering market shares in a globally growing milk market. This paper proposes an approach for the challenges of such integration, as well as viable solutions to sustainability issues.

Highlights

  • Accepted: 28 September 2021International trade is framed by a set of rules and norms defined by international or bilateral agreements which companies doing business beyond their frontiers must respect.in addition to such rules and standards, companies are urged to adhere to contemporary social values as well as environmental and moral principles and norms, which societies consider to be adequate in different parts of the world [1]

  • In addition to such rules and standards, companies are urged to adhere to contemporary social values as well as environmental and moral principles and norms, which societies consider to be adequate in different parts of the world [1]

  • These discussions gained greater prominence with the publication of the (SDGs) by the United Nations, which have further concretized the idea of sustainable development and the responsibility of the value chains

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Summary

Introduction

In addition to such rules and standards, companies are urged to adhere to contemporary social values as well as environmental and moral principles and norms, which societies consider to be adequate in different parts of the world [1]. These issues have led to a discussion in recent years about the role of companies in society and the ethical foundations of economic management. A corporate policy without a strategic and corporate cultural orientation towards responsible, sustainable management is no longer conceivable, at least in developed countries [2,3,4]

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