Abstract

The objective of this paper is to identify some elements which contribute to the entry of small and medium producers into the global market. Specifically, it analyses the case of the greatest Brazilian mango and grape exported region - the Petrolina-Juazeiro (P-J). The conceptual background consists of two approaches. The first conceptual framework is the Global Value Chain (GVC) approach which is mainly concerned with the entry of local economies, from developing countries, into the global market. The second approach is the dynamic capability which is mainly concerned with the way the firm could acquire capabilities. The method selected for the empirical part was the multiple-case studies which were made viable by means of semi-structured questionnaires conducted with mango and grape producer agents from P-J Region in Brazil and European buyers. This study indicates that some institutions have been supporting the export activities in terms of irrigation techniques, new techniques of cultivation, financial support and the introduction of some certificates such as EurepGap. Lastly, the mango and grape producers have been undertaking upgrading of product, process and functional.

Highlights

  • In general one of the main tendencies in global agriculture is the exclusion of small and medium producers from the global market (Garcia & Poole, 2004; Vorley, 2003) Some elements have been contributing to this process such as the concentration of retail sector and the huge increase in quality requirements in developed countries

  • 526 The Entry of Brazilian Fresh Fruit Small and Medium Producers Into the Global Market structured questionnaires conducted with mango and grape producer agents from Petrolina-Juazeiro region (P-J) in Brazil and European mango and grape buyers located in the United Kingdom, the Netherlands and the Germany

  • The categories of analysis considered on this study are: the routines for acquiring capabilities, path dependency which is related to the learning process of the organization and its history, and the environment which refers to the links to institutions and other agents

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Summary

Introduction

In general one of the main tendencies in global agriculture is the exclusion of small and medium producers from the global market (Garcia & Poole, 2004; Vorley, 2003) Some elements have been contributing to this process such as the concentration of retail sector and the huge increase in quality requirements in developed countries. The first one is the Global Value Chain whose main concern is the entry of small and medium producers into the global market and the investigation of some aspects of this phenomenon such as governance, the level and kind of upgrading undertaking by local producers and the importance of institutions supporting the actions of small and medium producers (Gereffi, 1999; Humphrey; Schmitz, 2000)

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