SPECIALTY CROPS IN ARGENTINA: AN ANALYSIS OF THE CONFECTIONARY SUNFLOWER AGRIBUSINESS FROM AN INSTITUTIONAL ENVIRONMENT, GOVERNANCE STRUCTURE AND MODERN INDUSTRIAL ORGANIZATION APPROACH <BR> DOI: 10.5585/remark.v8i2.2132

Abstract

In Argentina, since the market deregulation and the implementation of convertibility in the nineties, a new scenario evolved for farmers. It became necessary to increase benefits through reducing intermediation, adding value and diversifying risks. In response to that, specialty crops agribusiness started gaining importance as a productive and commercial alternative. The objective of this research is to study the Argentinean performance of a specialty crop, confectionary sunflower,through the methodology proposed by Paul Joskow (1995). It includes the description of the agents that compose the chain and their relationships; the study of the institutional environment in which this agribusiness develops, and the study of the dynamics within the agents. Main findings show that institutional innovations triggered the development of new organizational designs in confectionary sunflower agribusiness, based on contractual schemes that along with comparative advantages, allowed an important growth of the activity, placing Argentina as an important global player. Still, it is observed that there are conflicts within the actors of the chain, affected by factors related to market volatility and strong global competence. It results in a threat to further development of the agribusiness in Argentina, being necessary collective actions in order to be able to capture more value from what the whole system generates.