The quality pillars of a certification process: the Coffee Quality Program (CQP) in Brazil

Abstract

The aim of this study is to analyze the implementation process of the coffee quality program (CQP) and its implications on R&G coffee companies in Brazil. First, a theoretical analysis model - the 3 “Quality Pillars” - was build, based on the philosophy and objectives of the CQP and with the support of Transactional Costs Economics (TCE) as well as concepts of the Quality Theory. Afterwards, a field research with thirteen coffee roasters – adopters and non-adopters of the CQP - was conducted, in order to analyze their raw material supply, theirs productive process and marketing strategies. The research data were analyzed with support of the 3 “quality pillars” model: product quality, process quality and quality signal, represented by CQP quality labels that communicate quality to consumers. Main results reveal that to focus on quality issues was the main factor that increased vertical coordination among researched companies and their suppliers/partners. Therefore, CQP implementation process lead companies to adopt vertical coordination strategies with its suppliers and deliverers. On the other hand, all researched companies have problems to maintain their products’ quality standards. Non-adopters have high difficulty to implement traceability in their production process. It is possible to imply that traceability imposed by a certification process is a competitive advantage for some CQP adopters in comparison to non-adopters. Moreover, roasters that focus their businesses on product differentiation by quality attributes need as support a certification label or a strong brand to transmit credibility to consumers.