Abstract
Economic transitions are complex and long-term processes that exert pressure not only on individuals and macrostructures but also on collective resources and the communities that manage them. Understanding how communities influence institutional change is of particular interest. This article contributes to the extant literature through a proof of concept: the elaboration of a dynamic, multiscale framework based on JR Commons’ institutionalism, demonstrating the role of sectoral communities in the long-term restructuring of the French and German dairy sectors. This study reveals that sectoral communities contribute in all cases but that the types of resources and scales of operations vary, leading to contrasting pathways. Sectoral shared representations and governance structures frame their activities, favouring the creation and management of collective resources and, thus, supporting their capacities to elaborate productive solutions and to negotiate exchange values. This conclusion is a breakthrough, adding to the knowledge of how mesoeconomic institutions contribute to the structuring of productive activities.
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Even if we keep a typology of four market institutions, the Commons distinction between laws and ethics leads us to delimit, more strictly than Fligstein, (i) the rules of exchange as public rules derived from law and (ii) governance structures as community rules embedded in organisations that differ from conceptions of control because of their deliberative nature. We stick as well to the definition of property rights as bundle of rights.
Protected Geographical Status (PGS) is a legal framework that is defined by European Union law to protect the names of regional foods. Protected Designation of Origin (PDO), Protected Geographical Indication (PGI) and Traditional Speciality Guaranteed (TSG) are distinct regimes of geographical indications (GI) within the PGS framework. PDO, PGI and TSG are differentiated products that can satisfy a specific and remunerative demand. The reputation and the potential of value addition are collective goods. PGS is based on a specific history and knowledge that is embodied in publicly acknowledged terms of reference. In France, it is managed at the national level by the National Institute for Origin and Quality (INAO) by the Ministry of Agriculture. It has been granted through third party certification since 2008.
Coadministration is a sociopolitical model of relations between representatives of the state and part of the agricultural leadership (Colson 2008). This practice was imposed by a legislative framework (orientation law of 1960, 1962 and 1966), supported by the structuring of powerful governance structures (the main unions, FNSEA and JA, agricultural chambers and cooperative and credit organisations) and materialised via annual conferences. The objective was to promote a new model of agriculture (conception of control) that was intended to serve the general interest: the rapid modernisation of farms was a prerequisite to allow productivity gains and to ensure improved incomes. An agricultural exodus was accepted on the condition that it was accompanied by social measures.
The full intake principle implies that all the milk of a member of the cooperative must be delivered; therefore, the dairy is obliged to purchase all the milk from a member. The same type of relationship exists between dairy farmers and private dairies.
The dairy industry developed in southern Bavaria in the 1820s, and the land that had been used for flax production was redirected towards permanent grassland and milk production. Thanks to the know-how imported from Swiss cheese makers, a cheese business developed in the foothills of the Alps. In northern Germany, on the contrary, the butter industry was initially developed for the international market (Jürgens and Fink-Keßler 2015).
Minister R. Kunast decided to fully adopt the 2003 reform, gradually reducing the coupled payments and standardising the amount of decoupled aid provided to farms. This standardisation was gradually carried out at the Länder level from 2005 to 2013 and then at the German level from 2014 to 2020, leading to a significant increase in the value of aid assigned to grassland areas and dairy farms with historically low per hectare production, as well as the Länder and "natural regions" (in Lower Saxony) with the historically lowest average yields.
Between 2004 and 2009, the EEG gave farmers a major incentive to invest in biogas installations (20-year contracts with relatively high electricity feed-in prices). The EEG was then modified in 2012 and 2015 to reduce negative effects on the environment and increases in land prices: it capped the use of corn at 60%, provided incentives for smaller installation, and employed a 10% price reduction (Torries 2016).
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Dervillé, M. Institutional insights into the adaptation capacities of sectoral communities: evidence from the restructuring of the dairy sectors in France and Germany. Ann Reg Sci 71, 61–91 (2023). https://doi.org/10.1007/s00168-022-01132-y
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DOI: https://doi.org/10.1007/s00168-022-01132-y