TITLE:
How to Improve Dairy Production in Brazil through Indicators for the Economic Development of Milk Chain
AUTHORS:
Marcelo T. Okano, Oduvaldo Vendrametto, Osmildo Sobral dos Santos
KEYWORDS:
Dairy Chain, Agribusiness, Productivity, Milk Production
JOURNAL NAME:
Modern Economy,
Vol.5 No.6,
June
9,
2014
ABSTRACT: Dairy production in Brazil is an important
activity of the agricultural sector and it has a vital role in the economic and
social development process of the country. Brazil fluid milk consumption is
estimated at 177 liters per capita per year. Consumption of fluid milk is
forecasted to increase around 2 percent in 2013. The increase is derived mostly
from an estimated increase in industrial use, supported by higher disposable
consumer income. Milk drink products in Brazil are not only expanding in volume
but also gaining in sophistication and health orientation. Brazil is considered
as the top flavored milk drink market in Latin America. The lack of vision and
understanding of the production chain as a whole, eventually led to an
asymmetric behavior, in some situations, resulting in losses along the
production process, often justifying the dissatisfaction of producers. The
differences in type of producers, technology standards, low investments, the
profile of traditional estates, owners resistance to changes, cultural barriers
and distrust lead to unbalance of the estate productivity and the
disorganization of the supply chain. The present study proposes an
investigation and classification of the dairy chain to demonstrate that it is
possible to organize the estates of the dairy chain, using indicators to rank
them, modeling best practices to improve productivity and become a sustainable
productive chain.