The differentiation strategy of rural producers aims to avoid both price competition and the market share decrease in the production chain total value. The differentiation creates positive quasi-rent, but it does not guarantee that the extra revenue would be distributed in favor of the rural producers. This paper aims to present a theoretical discussion on how the quasi-rent of rural producers and processing firms would be divided over time, when the main element is investment in differentiation. The basis theoretical is the Transaction Cost Economics. For this analysis, three criteria of coffee differentiation were chosen: i) organic certification ii) high quality; iii) territory (origin). It concludes that the differentiation doesn't guarantee the producers quasi-rent appropriation. It is assumed that the consumer perception on which is the essential attribute in the final product composition.
differentiation; quasi-rent; transaction costs; specificity asset
