Family agroindustry: a mechanism stimulating specialisation in farm estate activities?

Abstract

Family agroindustry has been considered by several authors as an important reproduction alternative for family-based agriculture. However, this production process, which includes primary (production of raw-materials) and secondary (industrialization of production) activities, is generating a general concern. Can agroindustry, by promoting non-agricultural income for farmers, cause a reduction or, in extreme cases, an extinction of agricultural production in farm estates developing industrialization activities for selling in markets (family agroindustries)? In this sense, the purpose of this research was to analyse whether agroindustry can promote specialisation in family-based farm estates, or whether it is a form of economic diversification, being merely an activity similar to those developed in farm estates before the emergence of this process. The empirical study was conducted in 45 family agroindustries of sugarcane derivatives located in the Northeast of Rio Grande do Sul (Brazil)