ADOPTION OF REGULATION MECHANISMS IN THE PRODUCTIVE CHAIN OF MILK: AN ANALYSIS BASED ON INTERNAL FACTORS OF COMPANIES

This chapter aimed to verify the existence of a relation between specific features of the companies and the adoption of regulation mechanisms by milk processing companies. The adoption of these mechanisms improves the quality and informs the consumer about the quality and safety of products offered. The sample comprises 47 companies under the Minas Gerais state Industrial Registry. This is a quantitative-oriented study and its data has been collected through a semi-structured questionnaire. The technique used to meet the objective was the regression based on binomial logit model. Results suggest that, for this work’s sample, the adoption of regulation mechanisms is related to a specific feature of the company in a general way. It was also verified that there are differences in the company’s characteristics which will influence it into adopting either formal or informal mechanisms. The adoption of formal mechanisms is influenced by the time of experience in the market, international experience, processed amount and diversification (the variety of products manufactured by the company in question). The adoption of informal mechanisms is influenced by the company’s regional/nationwide experience and the percentage of qualified employees.