Effect of auto-regulation system for the coordination of the coffee production chain

Abstract

The coffee agribusiness underwent significant transformations due to the deregulation process of the coffee market, when state subsidies were replaced by an auto-regulatory system used by producers. Certifications are the means to establish the parameters with which coffee should be produced and commercialized, aligned to new standards and requirements on the global market. However, the lack of consistencies in the auto-regulation systems provided a more specialized governance system coupled to complex coordination. A qualitative research has been applied through secondary and primary data. Current study investigates the effects that the new approach causes on the coordination of the production chain. Results show that coffee culture should develop new mechanisms for coordination for the integration of data and sharing of information between the chain´s segments.