Maester Thesis in Econom\u00eda, Department of Economics, Univ. of S\u00e3o Paulo, Brazil.<\/p>\n
ABSTRACT:What are the determinants of the contractual arrangement choice in the beef producersprocessors\u00a0transactions in Uruguay? The question refers to the coordination and production\u00a0control problem. Changes in consumer\u2019s awareness of specific attributes in food products\u00a0demand information and better coordinated systems. Coordination becomes more important\u00a0to Uruguay not only to assure quality attributes of products but also to explore market access\u00a0opportunities and fast adaptation to international and local environmental changes (exports\u00a075% of the beef production). There are different contractual arrangements in the producerprocessor\u00a0transaction mainly direct channel and through intermediate agent. Theory\u00a0approach: Transaction Cost Economics offers helpful insights to understand the reason for\u00a0the development and adaptations of different contractual arrangement moved by transaction\u00a0cost economizing perspective. Method: empirical analysis focused on the Uruguayan beef\u00a0agro-industrial system. Analysis integrates (i) institutional and organizational environmental\u00a0changes on final markets and in Uruguay; identification of new opportunities and strategies\u00a0in the beef system; analysis of the Uruguayan system from consumption to production. (ii)\u00a0Analysis of the producer-processor transaction in relation to the contractual arrangement\u00a0and the dimension of the transaction (asset specificity in the production and processing of the\u00a0product being transacted, location, frequency of transaction and uncertainty). Identification\u00a0of the determinants of the main contractual \u00a0arrangement choice (direct and trough\u00a0intermediate agent). Finally, an econometric analysis of the causal relation identified\u00a0(determinants). Data sources: panel data with producers-processors transaction from\u00a0Uruguayan Agricultural Bureau (77,000 transactions, 2004\/05). Results: Statistical\u00a0significance between the contractual arrangement choice in the beef producer-processors\u00a0transaction and the determinants identified. The probability of a transaction being aligned\u00a0with the direct contractual arrangement (more coordinated) increases in transactions with\u00a0higher asset specificity (e.g.: young steer), lower distance between producer and processor,\u00a0and with higher frequency of transaction between these agents. The direct contractual\u00a0arrangement is helpful for the coordination of higher quality products. The intermediate\u00a0agent presents advantages for generic products transactions (lower asset specificity) and with\u00a0low frequency of transaction between the producer and processor involved. Seeking for\u00a0quality involves specific investments by producers and processors and, hence, higher bilateral\u00a0dependency between these agents. The beef system depends on two sets of products \u2013higher\u00a0and lower quality- oriented to markets with different characteristics. The subsystem oriented\u00a0to higher quality products involves higher coordinated arrangements. The results of this\u00a0research \u00a0were extended to implication for the organizations of the beef system and public\u00a0policies in relation to a \u201ccountry strategy\u201d focused on higher quality and value beef products.<\/p>\n