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Abstract

Different from other sectors in the Brazilian agriculture, the dairy is still immature, especially regarding external markets competition, and therefore is facing difficult challenges. This study identifies the main factors affecting the competitiveness in one of the most promising and dynamic dairy production areas in the world, the mesoregion Grande Fronteira do Mercosul in Southern Brazil. It is based on the perceptions of supply chain leaders about the challenges to improve the competitiveness. Missing professionalism, formal agreements, investments in marketing and research, technology, development and innovation, technical assistance, high transport and transaction costs, idle capacities and frauds are among the main factors retarding the modernization of this supply chain. It also present different strategies already implemented by some actors to overcome such competitiveness barriers. Therefore these problems and strategies must be the target of managers and authorities in a sustainable common project of development for the benefit of the whole chain. Acknowledgement : We would like to acknowledge the CAPES from the Brazilian Ministry of Education for the financing as well as the interviewees participants of this study for their time and dedication.

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