Understanding dynamics between public policy and global value chains (GVCs): governance for sustainability in the Brazilian Amazon beef cattle GVC

Purpose: This article unveils the governance dynamics of a frontier region for global value chains (GVCs). For this purpose, we developed a replicable methodology to analyze the interaction between public policies and the governance of GVCs to better assess sustainability impacts and business responses. We apply this methodology to understand the governance dynamics in the beef cattle GVC in the Brazilian Amazon. In Brazil, cattle ranching increasingly concentrates in the Amazon region, notably in the state of Pará, becoming the major driver of deforestation as public policies and law enforcement are ineffective. Using our methodology, we were able to identify the main weaknesses in governance pertaining to sustainability in the beef GVC. Design/methodology/approach: The methodology employed a case study approach and utilized GVC mapping and analysis using primary (semi-structured interviews and site visits) and secondary data sources. The governance structures along the GVC were characterized. Finally, the sustainability and upgrading within and beyond the GVC were analyzed. Findings: Based on our methodology, emerging beef GVCs, such as those in Santarém, Pará State, primarily supply the domestic market without external pressures to improve sustainability. This fact coupled with a lack of local capacity to implement public policies presents challenges for sustainable governance. Efforts to enhance the performance of the value chain predominantly stem from private sector capacity-building initiatives targeting ranchers. Originality/value: Through the development of our method, the governance of the Brazilian beef GVC in the Amazon is mapped and analyzed. This study introduces a novel sustainability-focused GVC mapping methodology aimed at establishing a standardized framework to enhance the comparability of research. As a result, this study offers useful theoretical and empirical contributions to the literature on the sustainability of GVCs in frontier regions where public governance capacity is low.