The Dairy Production Chain of Ibertioga MG

Bovine milk is a food consumed worldwide and has significant socioeconomic importance for the municipality of Ibertioga MG. Therefore, the objective of this work is to analyze the milk production chain of Ibertioga MG taking into account the Transaction Cost Economics, in order to contribute to the understanding of the dynamics of production and generate knowledge that enables decision-making aimed at the development of local production. A case study was carried out with 32 local producers, through the application of semi-structured questionnaires, approaching variables such as the frequency of transactions, risks involved in the activity, asset specificity, and the needs of the producers. The results showed the existence of high asset specificity, a high frequency in the milk sale transactions and a variable frequency in the input purchase transactions, and also that the local producers need a better technical assistance and that there is the necessity of a local association to improve the transaction conditions.