Transactions between pig farms and agro industry pork meat in the State of Santa Catarina (Brazil): a study of contracts under institutional approach

Abstract

The objective of this study is to analyze three partnership contracts between agro industry pork meat processor and pig farms in the state of Santa Catarina (Brazil). This kind of governance will be studied in the light of New Institutional Economics, which is based on limited rationality and opportunism of the economic agents. Thus, the contracts were reviewed based on asset specificity, frequency and uncertainty - three dimensions of transactions that are critical to the adoption of the mode of governance (market, hierarchy or combination of methods) so that it is conducive to the reduction of transaction costs. It is concluded that the contracts are an option but the progress must occur for there to be a better balance between the parties for the maintenance of activity in the long term.