Private regulation and global economic change: The drivers of sustainable agriculture in Brazil

Abstract

What determines the uptake of private sustainability regulation in developing countries? Existing studies point to the local context as the key explanatory factor. In particular, they identify local program characteristics, industry structures, and the regulatory environment as variables influencing program uptake at the point of production. However, examining two very similar certification programs in Brazil’s soy and sugarcane industries, this article finds that local conditions fail to account for the observed patterns. A ‘local explanation’ would have predicted similar levels of industry uptake in the two sectors. Conversely, it is found that Brazil’s soy producers first backed but then opposed private sustainability regulation, whereas in the sugarcane sector the dynamic was exactly the opposite. Through an in-depth analysis and cross-case comparison this article reveals how changing transnational conditions were decisive in shaping these outcomes. Specifically, shifting end markets exposed the two sectors to different economic and regulatory pressures.

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