The New Face of Brazilian Pig Production – Integration System

The integration and coordination system in Brazilian pig production

In the last fifteen years the Brazilian pig production sector has been moving away from the free market (“spot”) towards coordinated models of production (Figure 1). Coordinated systems of production in Brazil can be traced back to the 1970s. At that time until the late 1980s, the system was structured as follows: there was an integration system of complete cycles similar to the other groups, a specific system for production of piglets (until the end of nursery phase) and a finishing system (from the end of nursery to slaughter).
The system of partnership had not yet been deployed and the industries were only intermediates, i.e. the industries collected the piglets from the producers and either sold them to the finishers, or finished them on their own facilities (Santos Filho et al., 1999).
From the mid-1980s, the swine industry changed this system, implementing the partnership in primary production system. This new system made the pig production process closer to the poultry production process, but this occurred only after the delivery of piglets for the terminator partner.
New segments are currently emerging within the pork production business. The producers of piglets now have their activities carried out by two new categories of producers. One group, referred to as “materneiro” is responsible for the production of piglets up to the weaning stage (up to 5–6 kg) and another, referred to as “crecheiro”, is responsible for the nursery phase (between 5–6 and 25 kg). In addition to the segmentation in the production step, there are the different organisational arrangements ranging from own production, independent production, middleman, partnership, lending, and partner-integrator, among others (Santos Filho et al., 1999; Miele & Waquil, 2007).
The production system within the new organizational forms of production has grown significantly in Brazil over the past 15 years. In Santa Catarina, a traditional pig producer state, it already represents over 80% of commercial slaughter. A similar picture occurs in the other states and in the new areas of expansion of the activity in the West Center, where 100% of the new investments are implemented with some form of non-traditional organization of production (mostly in partnership).

References

1. Miele, M. ; Waquil, Paulo D. . Estrutura e dinâmica dos contratos na suinocultura de Santa Catarina: um estudo de casos múltiplos. Revista Estudos Econômicos. Instituto de Pesquisas Econômicas, São Paulo, v. 37, p. 817–847, 2007.
2. Santos Filho, J. I.; Santos, N. A.; Canever, M. D.; Sousa, I. S. F.; Vieira, L. F. O. Cluster Suinicola do Oeste de Santa Catarina. In: Haddad, P.R. [Org.]. A competitividade do agronegócio e o desenvolvimento regional no Brasil: estudo de clusters. Brasilia: CNPq/EMBRAPA, 1999. p.125–180.

By Santos Filho, J.I.; Bertol, T.M.
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Source: © CAB International 2010, Pig News and Information 31 (1), 1– 8