Sustainability and governance in the global value chain of orange juice value chain.
Global Value Chains. Sustainability. Orange Juice. Agricultural Commodities.
This research presents an analysis of the global value chain of the Brazilian orange juice, focusing on sustainability. Although there is a discourse on the part of the industry about its sustainable character, watchdog organizations are constantly denouncing social and environmental problems in this productive chain. In parallel, the orange juice consumption is falling in its main market, Europe. Sustainability is essential for the resumption of growth, due to the European consumers' demands and the increasingly strict due diligence requirements imposed by the European Union. The main goal of this research is to investigate if there is a convergent sustainability agenda for the orange juice industry. To answer this question, the sustainability agendas of the different actors of the chain, including producers, processing companies and trading companies, were analyzed, using as a source the review of secondary and primary data, published in reports, websites and public articles. The research uses the theoretical framework of Global Value Chains (GVCs), especially in relation to governance and power relations.
The research uses the theoretical framework of Global Value Chains (GVCs), especially in relation to governance and power relations, in order to understand which sustainability issues are spread throughout the chain and which are restricted to a specific group of actors. Preliminary results indicate that there is a convergent sustainability agenda for the sector, with topics related to human rights, working conditions, pesticide use, biodiversity, farm management, traceability and community relations. Certifications play an important role in unifying this agenda, although they still represent a small part of the chain's volumes. Other topics, such as decent income and welfare wages, are neglected by certain stakeholder groups. As a limitation of the research, issues related to the implementation of the agenda are not covered in this study.