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Abstract
This paper aims to analyze how family farmers behave facing significant changes
in the institutional environment of milk production chain. In this sense, we investigated
main consequences and impacts on the social and productive organization of milk
producing families as a result of the Institution Normative 51 by Ministry of Agriculture
in the western region of Santa Catarina state. We used the approach of New Institutional
Economics (NIE) and field research with strategic actors involved in the dairy production
in the region. We concluded that the IN51 decisively influences the form of organization
and participation of family farming in the milk production chain.