Contractual incentives and efficiency: the case of the new generation cooperatives

The cooperative system is a way of organizing production as well as coordinating agroindustrial systems. Nowadays, new economical premises from the opening of markets and the modernization of agriculture make companies adopt a new efficiency standard and resource allocation. For these cooperative enterprises to be able to settle into this new environment, efficiency in both the industrial processing plant and in each one of the associated productive units is necessary in this organization.
The objective of this essay is to discuss ways of achieving this efficiency, using also the theoretical precepts of the New Generation Cooperatives – NGCs. At the end, we conclude the there are advantages in having cooperatives in the coordination of strictly coordinated agroindustrial systems as well as that there is a need for institutional changes in Brazil so that NGCs can be settled.