Organizational structures and the evolution of dairy cooperatives in Southern Brazil: A life cycle analysis

Abstract

Mesorregião Grande Fronteira do Mercosul (GFM) in southern Brazil is the country’s largest dairy production area. This region has the highest concentration of dairy cooperatives of small and medium-sized producers in the country. Nevertheless, the traditional policies and practices of Brazilian cooperatives no longer align with market realities and the exclusion of less efficient cooperatives from the market affects many small family farms. This study about the development of dairy cooperatives located in the GFM aims to identify these cooperatives’ vulnerabilities and improvements that can increase their competitiveness. Using Cook’s (1995) life cycle approach, we describe the evolution of cooperatives in the dairy industry in this region. The results indicate the necessity of new designs for GFM dairy cooperatives’ business models and strategies in order to disconnect them from government aid. Measures to enhance their market competitiveness are necessary to promote self-sufficiency in this growing sector and maintain family farms’ continued existence.