Collaborative practices and transaction costs in the coffee sector in Mexico

Abstract

The commercialization of differentiated coffees has taken on great relevance because it is an option for small producers to access international markets and improve their economic well-being. This requires new strategies to respond to changes in demand along the supply chain. Through the development of a case study that includes a total of seventeen interviews, ten to producers, five interviews applied to the representatives of each cooperative, one to the representative of the company Integrator INCAFESAM, and one to the representative of the company Malongo , the present study shows how the collaborative practices adopted allow to be a solution to achieve a reduction in transaction costs and greater coordination in the coffee supply chain of the region of Cordoba, Veracruz. The research was carried out between the months of September 2015 and May 2016. The results obtained show that the standardization, certification and associated procurement practices have contributed to the reduction of transaction costs such as information on the quantity of supply, quality of the product, and costs for monitoring and negotiation. On the other hand, the practical exchange of information has made it possible to improve coordination among members of the supply chain, which results in better product planning and availability based on the quality required in the market.