Network companies, another way of thinking agriculture. A supply chain management vision in South America

Abstract

&lsquoPools de siembra&rsquo and network companies are agricultural commodities producers in South America. They plan production, procurement and commercialization but outsource production activities to field work companies (contratistas). The production activities are separated from land and equipment owning, a major change in the framework of traditional agriculture in South America. Farming companies are a cause for concern, but paradoxically the percentage of agricultural production realized by these companies is not well quantified. The main reason is that they are undefined as a statistical group. This study takes a detailed look at agricultural production processes and evaluates some factors for their success.