The transactions between segments of the winegrowing chain in the northeast of Rio Grande do Sul: Characteristics and present stage

Abstract

This article describes the main characteristics that presently determine the transactions between selected segments of the wine growing production chain in the northeastern region of Rio Grandedo Sul, which is Brazil’s leading region in the production of raw material (grapes) and the main products derived from it. To present the present stage of these relations, the article uses the theoretical foundations of the Economy of Transaction Costs to identify the main governance structures that characterize the transactions between the various segments. It uses a review of the literature on the topic as well as direct and semi-structured interviews with professionals who work in this chain. Among the main findings is an intensification of the traditional transactions and the emergence of new relations. The article highlights the creation of associations that pursue cost reductions through joint purchase and sale derived from the significant bargaining power of some segments. In the transactions between the agribusiness sector and the distribution segments the investigation found a broadening of product distribution channels. However, it is still difficult to place national products in the big supermarket chains, which are the leading organizations in the distribution of fine wine products in the country. This, in spite of significant advances achieved in the two past decades, the chain still presents major bottlenecks that affect its competitiveness.

Key words: Production chain, winegrowing chain, economy of transactions costs.