1. XIII Seminario LACCTA, 2004 Henry et al. 1 guy.henry@cirad.fr Organización de actores alrededor de la gestión de calidad en cadenas agroalimentarias Guy Henry, CIRAD Daniel Iglesias, INTA Alejandra Engler, INIA Elisabete Salay, UNICAMP Gonzalo Gutiérrez, UDELAR

2. XIII Seminario LACCTA, 2004 Henry et al. 2 guy.henry@cirad.fr Agenda Context Socio-economic challenges Possible theory & approaches Progress to date Way forward

3. XIII Seminario LACCTA, 2004 Henry et al. 3 guy.henry@cirad.fr Context Food safety has become more and more important QAS in agri & food sectors becomes the norm HACCP well known, but typically at individual chain levels (processing, manufacturing, production, …) QAS throughout the agrifood chain Chains stretching accross different borders (regulations) Technical challenges broadened by socio- economic /organizational issues

4. XIII Seminario LACCTA, 2004 Henry et al. 4 guy.henry@cirad.fr Role of social sciences in QAS, before... As team members of a HACCP team Assisting in designing micro and macro Flow Diagrams Analyzing the supply chain, market,... Technology costs & benefits Etc.

5. XIII Seminario LACCTA, 2004 Henry et al. 5 guy.henry@cirad.fr EC INCO-Dev Project Mycotox (2003-05) “ The Development of a Food Quality Management System for the Control of Mycotoxins in Cereal Production and Processing Chains in Latin America’s Southern Cone Countries ”

6. XIII Seminario LACCTA, 2004 Henry et al. 6 guy.henry@cirad.fr To expand the single level analysis to a (chain) system analysis  deal with different actors, their organization and their interests. To integrate the techonology agenda with the socio- economic agenda. To develop “cost effective” tools to be implemented. Socio-economic challenges of MYCOTOX project

7. XIII Seminario LACCTA, 2004 Henry et al. 7 guy.henry@cirad.fr Corn chain in Brazil T.. transactions T1 T2 T3 T4T5 T6

8. XIII Seminario LACCTA, 2004 Henry et al. 8 guy.henry@cirad.fr To expand the single level analysis to a (chain) system analysis  deal with different actors, their organization and their interests. To integrate the techonology agenda with the socio- economic agenda. To develop “cost effective” tools to be implemented. Socio-economic challenges

9. XIII Seminario LACCTA, 2004 Henry et al. 9 guy.henry@cirad.fr Identified research questions Which are the instruments: (i) economic incentives, (ii) regulations, (iii) collective actions, to promote the adoption of QMS? What are the consequences and / or necessary conditions regarding the governance structure of the chain when implementing a QMS?

10. XIII Seminario LACCTA, 2004 Henry et al. 10 guy.henry@cirad.fr Translated into objectives… To assess the costs and benefits of implementing a QMS (i.e. “HACCP”) in the cereal agri-chains in Latin America countries. To identify the limitations in the agrichain governance structure to implement a QMS. To determine the instruments (economic incentives, regulation and collective actions) that are necessary conditions to facilitate the implementation of a QMS.

11. XIII Seminario LACCTA, 2004 Henry et al. 11 guy.henry@cirad.fr Proposed theory and approaches Traditional economics: looks at agents in a given environment in isolation. NIE: considers interaction and transaction among agents  considers the institution and institutional arrangements between agents. INSTITUTIONS: formal and informal rules of conduct that facilitate the coordination and relationship between individuals and groups.

12. XIII Seminario LACCTA, 2004 Henry et al. 12 guy.henry@cirad.fr Transaction costs:... the costs associated with the process of exchange, including the transaction specific investments or the costs related to asset specificity, transaction frequency and uncertainty.... (Williamson, 1979) Proposed theories and approaches

13. XIII Seminario LACCTA, 2004 Henry et al. 13 guy.henry@cirad.fr Transaction cost in supply chains: In a commodity system  central focus is on the problems and mechanisms of coordination Coordination: linking decisions of input suppliers, farmers, processors and traders to match supply and demand for raw materials and products. Proposed theories and approaches

14. XIII Seminario LACCTA, 2004 Henry et al. 14 guy.henry@cirad.fr Transaction cost and “HACCP”: “HACCP” will change the institutional environment in the commodity chain: - change specificity and uncertainty - affect monitoring and enforcement Change transaction cost, but : In what direction + by how much? Proposed theories and approaches

15. XIII Seminario LACCTA, 2004 Henry et al. 15 guy.henry@cirad.fr Supply chain involves actors with different conditions & incentives The social science role What is a supply chain / commodity system ? “... participants involved in the production, processing and marketing of a single farm product...”  commodity /information flows  interaction of different actors. We need to understand the actors, their environment and its organization to develop and adjust a cost-effective, acceptable, quality control management system

16. XIII Seminario LACCTA, 2004 Henry et al. 16 guy.henry@cirad.fr ObjectiveLink with proposed theory To assess the costs and benefits of implementing a QMS (i.e. HACCP) in the cereal agrichain in Latin America countries. Beside assessing the direct cost that a QMS implies in the different parts of the chain, we expect changes in the transaction costs between agents that could increase or decrease. We propose to identify and assess these marginal costs/benefits. To identify the limitation in the agrichain governance structure to implement a QMS. The governance structure of the chain (through a transaction perspective) will allow us to identify the current limitation of the chain to implement the proposed QMS. To determine the instruments (economic incentives, regulation and collective actions) that are necessary conditions to facilitate the implementation of a QMS. After addressing the two first objectives we would be able to determine what instruments are necessary to facilitate the adoption of QMS in the agrichain.

17. XIII Seminario LACCTA, 2004 Henry et al. 17 guy.henry@cirad.fr Expected results 1.Improved quality control will contribute to reduced transaction costs, that will contribute to improved competitiveness.... 2.Increased quality control in chains will be a strong motivation for vertical integration (partnerships).... 3.Expected increased market share and/or price premium, or new goverment policies (norms) are needed for motivation within partnerships

18. XIII Seminario LACCTA, 2004 Henry et al. 18 guy.henry@cirad.fr Concluding points Quality control systems along full supply chains imply additional challenges for food technology + social sciences Incentives will need to come from government or trade policies (non-tariff barriers) or market/price premiums Clear and well distributed benefits for all chain participants are a key requirement (as incentive) Lack of motivation or interest may result in exclusion from international trade... It would be less confusing to label this new integrated research “HACCP+” or “IQA” ?

19. XIII Seminario LACCTA, 2004 Henry et al. 19 guy.henry@cirad.fr Problem…. In three out of four countries of the Mycotox project, we find a sheer absence of concrete and clear incentives at the grain producers and mill levels …

20. XIII Seminario LACCTA, 2004 Henry et al. 20 guy.henry@cirad.fr Acknowledgement This research is funded by : The European Commission The European Commission INCO-DEV Project MYCOTOX, 2003/05 INCO-DEV Project MYCOTOX, 2003/05 EC Contract number : ICA4-CT-2002-10043 EC Contract number : ICA4-CT-2002-10043