Law Proposal No. 952/2019 and dairy sector

Abstract

This article is exploratory research that aims to analyze the Brazilian Law Proposal Nr. 952/2019 under the scope of the New Institutional Economics (NIE). In the vision of the NIE, the institutions are the rules of the game and organizations are the players, the interaction between them is that gives shape to institutional change. Brazil has gone through several institutional changes from the decade of 1990 which led to the integration of the internal market for dairy products in the international market, the national productive sector was not prepared for such changes. The state is an organization and may propose institutional changes, as Law Proposal No. 952/2019, which if implemented, will change the institutional matrix of the milk market in Brazil. This Law Proposal restricts the import of milk powder by Brazil for products with at least 70% of the period of validity (shelf-life). This brings more transparency and food safety to the Brazilian consumer, and can also increase the demand for national milk, which must have its high price. Currently, the Law Proposal 952/2019 is at the stage of of voting in the Chamber of Deputies.