The Social Fabric of Cheese Agroindustry: Cooperation and Competition Aspects

The aim of this study was to analyze the relational social structure of the cheese factories based on an agribusiness territory of Mexico through social network analysis (SNA) in order to understand how different types of agroindustries coexist and endure. Participant observation and semi-structured interviews were carried out in 17 cheese agribusinesses located in the area of San José de Gracia, Michoacán (Mexico), in order to get insight into the family, inter-company, commercial and technical ties they have built. The SNA showed that in the community there is a meso-system where different cheese companies that produce either natural, imitation or both cheeses converge and coexist. These agroindustries make up a complex social structure composed of 1717 actors, comprising a dispersed network with low connectivity (density ˂0.5%) due to the commercial nature of the relationships (95.9%). Simultaneously, an underlying network with a higher density (1.73%) was also evident, enriched by kinship and friendship ties that create cooperation and trust among the parties through 136 reciprocal tangible and intangible exchanges. Despite the differences and asymmetries of cheese agribusinesses in this community, the social structure they form behaves like a ‘local neighborhood’ where everyone knows everyone, and everyone coexists, competes and shares with one another, allowing them to be sustainable in the marketplace. This study provides important lessons for institutions that promote competitiveness and local development, because it shows that in order to achieve sustainability of agroindustrial companies, it is important to recognize and promote long-term social structures based on trust, friendship and reciprocity.