Competitiveness of the agro-industrial system for broiler chicken processing in Tocantins: the case of the Frango Norte company

Abstract

This article analyzes contractual and organizational arrangements of the company Frango Norte as well as their impact on levels of competitiveness. Of further interest was an understanding of possibilities and perspectives of the poultry processing industry in the state of Tocantins. This company is one of two poultry processing plants in the state of Tocantins and it supplies most of the local market while also attending other states such as Pará, Piauí and Maranhão. The method used for this study was discrete Comparative Structural Analysis of New Institutional Economics that compares different governance structures as a way to minimize transaction costs. Results reveal that the incomplete stage of the agro-industrial system for broilers in Tocantins, especially characteristics of the local market and suppliers still contribute to informality in various links of the supply chain. Remoteness and lack of bargaining power in negotiations to acquire assets with high specificity, especially chickens for processing and young chickens for fattening, are some of the bottlenecks for competitive performance of the Frango Norte company