PIC/AGROCERES CO.:TECHNOLOGY IN SWINE GENETICS

Abstract

The case study focuses the joint venture between two companies, PIC from UK and Agroceres from Brazil, aiming at the transference of technology of pig genetics to the Brazilian market. The venture has been successful so far but at the same time faces enormous challenges. The venture succeeded to introduce the technology but followers are now entering the market. At the technical side further improvement of quality of carcasses is showing to be difficult due to the trade-off between leaner meat and reproductive efficiency. The case study shows also some ex-post contractual costs. The original contract between the venturers was not clear enough with regard to the participation on the new and promising Mercosur market. The case induces the reader to think about factors of competitive efficiency and opens room for discussions related to the strategies in the pig industry.