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Coordination and Integration of the Cattle and Beef Sector

  Objectives

- To provide students with economic and institutional instruments that allow them   to understand an  integrated approach to agroindustrial chains.

-  To analyze case studies about coordination and integration in the sector

-  To create the ability to design chains that would optimize their value, performance and results

Director: Lic.  Alejandro R. Silva 

Instructors: Agr. Eng. Segundo Acuña, Vet.  Federico J. Santángelo  

Method: Lectures, hands-on classes, case analysis and developing of an application

Time Load: 16 hs.

Lectures: 12hs. Students shall read material assigned for classes, that will be handed out before the course begins

Hands-on Classes: 4 hs. Developed during the last 4 meetings in one hour periods, consisting in the application of instruments and doctrine learnt to a real case of coordination and integration in the sector

 Unit I

Principles of Economics

Introduction and concept of agricultural market. The demand for agricultural products. The concept of consumers' surplus. The supply of agricultural products. The concept of producers' surplus. Price formation and market equilibrium.

 Unit II

Agricultural Marketing Margins

The theory of marketing margins. Components of marketing margins. Factors affecting M.M. Gross and liquid margins. The basket of agricultural products. Analytical models of M.M.

 Unit III

The Institutional Environment

Definition. The importance of culture: human ad social capital. The relationship between productivity and prosperity. Institutions, technology and development. Transactions costs: concept, definition and estimation. Specific comparative legislation. Impact on productivity . Lobbying organizations. Contract: definition and types. Control and promotion organizations.

 Unit IV

Agroindustrial Chains – Theoretical framework

Definition and concept. Description: elements and stages. Activities within the chain. Structure and performance. Behavior: abnormalities. Coordination and integration: definitions. Vertical coordination continuum: strategy of individual coordination. Economic implications.

 Unit V

Agroindustrial Chains – Empirical Evidence (Case analysis)

The beef chain: Argentine case compared to American and Australian. Brazil: the pork, poultry and beef chains. The soya bean, maize and wheat chains: their implications for the cattle and beef sector. Comparative studies among beef, pork and poultry. Other chains. Traceability: concept  and definition. Its importance as a value adding instrument. The role of  information technology .

 

Unit VI

Alliances in the Cattle and Beef Sector

Definition. Typology: commercial, breeders and natural. Experiences in U.S., Argentina and Australia. Comparative analysis. Similarities and differences. Programs of product differentiation: economic foundations and empirical evidence. Case studies. Requisites for programs design: technical and law/economic. Brand: definition, concept and construction. The impact of advertising.

 Bibliography

 Amstrong, H. 1999. "Get Inside the mind of the Consumer". Meat International. 9(2): 28-29. Elsevier International Business.

Baarn, J., Van der Hoek, F., Pinckaers, M. y Pijls, F. 2001."Making End Meats. Dynamics in the Meat Industry". Food & Agribusiness Research. Rabobank International. pp. 51

Bentham, A & Oldham, C. 2003. "Creating Value Through Traceability Solutions: a Case Study". Food Origins. pp. 12

Boal, F y Reca, A. 2002. "Australia and Argentina's Beef Industries: Contrasting Structures and Strategies". Food & Agribusiness Research. Rabobank International. pp. 6

Boland, M., Barton, D y Domine, B. 1999. "Economic Issues with Vertical Coordination". MF-243. Kansas State University Agricultural Experiment Station Services and Cooperative Extension Service. pp. 11

Brester, G. y Schroeder, T. 1995. "The Impacts of Brand and Generic Advertising on Meat Demand". American Journal of Agricultural Economics: 969-979

Caldentey Albert, P y Gómez Muñoz, A. 1993. "Economía de los Mercados Agrarios". Ediciones Mundi Prensa. Madrid. pp. 218

Champredonde, M. 1998. "Una Integración en Dos Dimensiones. Grupos de Productores que Instalaron su Propia Carnicería". pp. 16

Coase, R H. 1991 "Prize Lecture. Lecture to the Memory of Alfred Nobel". Nobel Lectures 1991-1995. World Scientific Publishing Co. pp. 8

Fee, R. 1997. "A is for alliance". Succesful Farming: 25-29

Green, R. 1999. "Nota Metodológica para el Curso de Capacitación en Análisis de Cadenas Agroalimentarias". ONU-FAO. SAGPyA. pp. 8

Hargreaves, J. "Supply Chain Alliances Vital". Agency for Food and Fibres Sciences. pp. 1

Henson, S & Hooker, N. 2001. "Private Sector Management of Food Safety: Public Regulation and the Role of Private Controls". Intenational Food and Agribusiness Management Review 4 (2001) 7-17

Hobbs, J, Cooney, A, y Fulton, M. 2000. "Value Chains in the Agri-Food Sector. What are They? How Do They Work? Are They For Me? Specialized Livestock Market Research Group. pp. 32

Katz, J y Boland, M. 2000. "A New Added Value Strategy for the US Beef Industry: the Case of US Premium Beef Limited" Supply Chain Management: An International Journal. pp. 99-109

Ketelhon, W y Allen, B. 1999. "Competitividad de la Industria de la Carne en América Latina" INCAE. Centro Latinoamericano para la Competitividad y el Desarrollo Sostenible. 1 Edición. Págs. 166.

Muñoz, R. 1996. "Comercialización. Entregas I y II". Secretaria de Publicaciones. CEABA. Facultad de Agronomía. Universidad de Buenos Aires. pp. ND

North, D. 1995a. "Transaction Costs Through Time". Washington University. St. Louis. pp. 9

North, D. 1995b. "Institutions, Transaction Costs and Productivity in the Long Run". Washington University. St. Louis. pp. 10

North, D. 1996. "Economics and Cognitive Science". Washington University. St. Louis. pp. 5

Porter, M. 2000. "Attitudes, Values, Beliefs, and the Microeconomics of  Prosperity". Capítulo 2: 14-28. En: "Culture Matters. How values Shape Human Progress". Harrison, L. y Huntington, S. Editores. Basic Books, New York. pp. 348

Peterson, J, Cornwell, F. y Pearson, C. 2000. "Chain Stocktake of Some Australian Agricultural and Fisheries Industries". Department of Agriculture, Fisheries & Forestry. Australia. pp. 96

Peterson, S and Wysocki, A. 1997. "The Vertical Coordination Continuum and the Determinants of Firm-Level Coordination Strategy". Department of Agricultural Economics. Michigan State University. Staff Paper No 97-64. pp. 20

Poray, M, Gray, A, Boehlje, M & Preckel, P. 2003. "Evaluation of Alternative Coordination Systems Between Producers and Packers in the Pork value Chain". pp. 28

Reca, A. 2002. "Food and Mouth Disease in Argentina: Turning a Crisis into an Opportunity". Food & Agribusiness Research. Rabobank International. pp. 6

Sahad, C. 2001. "US Branded Beef . . . These are changin' Times". Industry Note. Food & Agribusiness Research. Rabobank International. pp. 5

Salin,V. 1998. "Information Technology in Agri-Food Supply Chains". Texas A&M University. Págs. 6

Santángelo, F. 2001. "Argentine Beef. Panorama y Perspectivas Futuras. Necesidad de un Cambio". Tesis de Maestría en Agronegocios. UCEMA. pp. 55

Silva, A. 2001. "El Complejo Agroindustrial de la Soja en Argentina: un Análisis Descriptivo y Competitivo". Facultad de Agronomía. Universidad de Buenos Aires. pp. 42

Silva, A. 2003. "Diferenciación de Producto: ¿Una Estrategia Competitiva para el Sector Ganados y Carnes Argentino?". Tesis de Licenciatura. Facultad de Agronomía. Universidad de Buenos Aires. pp. 136

Silva, A. 2003. "Los Costos de Transacción: Orígen, Aplicación y Definición del Concepto". Escuela para Graduados. Facultad de Agronomía. Universidad de Buenos Aires. pp. 10

Silva, A. 2004. "Contrato de Capitalización de Hacienda Vacuna de Cria". pp. 2

Ward, C. 1977. "Vertical Integration: Beef Pork and Poultry". Department of Agricultural Economics. Oklahoma State University. pp. 13

Varian, H. 1998. "Microeconomía Intermedia". Cuarta Edición. Editorial Antoni Bosch. Barcelona. pp. 752

Wachenheim, C. y Singley, R. 1999. "The Beef Industry in Transition: Currents Status and Strategic options". Journal of Agribusiness 17,1 (Spring 1999): 49-62. Agricultural Economics Association of Georgia

Wood, A. 1999. "Value Chains: an Economist's Perspective". Spreading of the Grains Workshop. IDS. pp. 7

Zylbersztajn, D. 1996. "Governance Structures and Agribusiness Coordination: A Transaction Costs Economics  Based Approach". USP. pp. 46

Zylbersztajn, D & Farina, M. 1999. "Strictly Coordinated Food-Systems: Exploring the Limits of the Coasian Firm". International Food and Agribusiness Management Review. 2:2 249-205

   

April 2005