VALUE CREATION AND DISTRIBUTION IN THE SPECIALTY COFFEE CHAIN: A STUDY OF THE RELATIONSHIP BETWEEN AGENTS IN PARANÁ, BRAZIL AND EUROPE

Abstract

We aimed to understand how the transactions of the specialty coffee value chain are organized between agents in Paraná, Brazil and Europe, with a focus transaction characteristic and measurability for value creation and distribution. 26 semi-structured interviews were performed with members of the specialty coffees global value chain involving the State of Paraná, Brazil, and four European countries. As results, this is a complex, heterogeneous and non-linear chain. What is transacted is a set of intrinsic and extrinsic value attributes. In addition to physical, sensory, socially sustainable production, social and regional attributes, we showed that pleasantness and standardization of the product are important attributes. Such attributes change along the chain and are measured differently by agents, being able to create measurement imbalances along the chain. The non-measurement by agents such as roasters and coffee shops, compromise the transmission of information since these are the first agents to identify the value demanded in the chain. Such imbalances could be identified by observing the set of transactions in the chain as a whole to the detriment of an isolated transaction. As an empirical contribution, we discuss that when exposing which attributes are considered as a value for each transaction, public and private institutions can develop more objective quality assessment mechanisms. Theoretically, we argue that to understand efficiency in global value chains it is necessary to analyze the set of transactions that make up the entire chain and not just the analysis of dyadic transactions between two agents.