Geographical milk redistribution in Paraná State, Brazil: Consequences of institutional and market changes

• Published in: Journal of rural studies Vol. 64; pp. 63 - 72
• Main Authors: Bánkuti, Ferenc Istvan, Caldas, Marcellus Marques
• Format: Journal Article
• Language: English
• Published: Elmsford Elsevier Ltd 01-11-2018; Elsevier Science Ltd
• Subjects: Adequacy; Agricultural production; Cities; Cluster analysis; Dairy industry; Dairy products; Distribution; Economics; Factor analysis; Geographical distribution; Markets; Milk; Milk production; Municipalities; New Institutional Economy; Process engineering; Production frontiers; Public policy; Redistribution; Technical services; Transaction Cost Economics; von Thünen's theory; Brazil; New Institutional Economy; von Thünen's theory; Transaction Cost Economics; Production frontiers
• ISSN: 0743-0167; 1873-1392
• DOI: 10.1016/j.jrurstud.2018.10.004

This study filled a gap in literature by analyzing how institutional and market changes that have occurred since the 1990s in Brazil influenced the geographical distribution of milk production in Paraná State, Brazil. In addition, this study discussed the formation of new production frontiers and their impacts on the dairy actor's production chain. Data concerning productive and economic variables of the 399 municipalities in Paraná state were used to generate an indicator of dairy activity through Common Factor Analysis. Besides that, we perform clusters analyzes to define groups of municipalities of low, medium, and high importance. The geographical redistribution of milk production was discussed considering New Institutional Economy, Transaction Cost Economics, and von Thünen's theories. The results indicated that intrinsic characteristics of milk production systems, market characteristics, and institutional demands encouraged the shifting of production from the north, toward the south of Paraná State, redefining new the frontiers of milk production. Therefore, new public policies should be defined, aimed at providing financial and technical support for the production and processing of milk at the new frontiers. It is also necessary to seek the logistic adequacy for the collection and distribution of dairy products in these regions.
•The institutional and market changes that have taken place since the 1990s in Brazil has generated a displacement in dairy activity in Paraná State. However, intrinsic characteristics of the productive systems, such as the degree of technology/specialization, profitability, type of soil and relief, and location were also determinants of this geographical redistribution.•The increase in dairy systems in the new production areas represents an important stage of regional development, especially considering that these areas cannot be used for other agricultural activities and intensively rely on family labor.•The formation of the new milk production frontier may result in important structural and technical changes in all segments of the milk production chain, imposing new challenges on its actors.