Contracts, Social Network and Knowledge Diffusion in Brazilian Sunflower Agri-Food Chains for Potential Supply of Innovative Food Proteins

Abstract

The article analyzes the operation of sunflower agri-food chains in Brazil to understand possible ways to supply innovative sunflower food protein from Brazil. The findings from a multiple-case study approach show that the dynamic of operation of Brazilian sunflower agri-food chains are based on contracts, social network and knowledge diffusion. Although necessary, this governance arrangement has not been able to guarantee a sustainable long-term operation due to market, technological and supply chain management bottlenecks. Regional characteristics influence the level of transaction costs and the role of inputs suppliers in the chains’ operation. The introduction of high value-added food protein products could raise the comparative advantage of sunflower in relation to competing crops, benefiting the chain operation. This article contributes to the understanding of the operation of agri-food chains focused on new or non-established crops, besides reinforcing the complementarity of transaction costs economics and social networks in explaining the functioning of social-economic systems.