Brazil's Transportation Infrastructure and Competitiveness in the Soybean Market

Xi He, Guilherme DePaula () and Wendong Zhang ()
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Guilherme DePaula: Center for Agricultural and Rural Development (CARD) at Iowa State University, https://www.card.iastate.edu/people/profile/?n=guilherme-depaula

Center for Agricultural and Rural Development (CARD) Publications from Center for Agricultural and Rural Development (CARD) at Iowa State University

Abstract: In 2013, Brazil surpassed the United States to become the world's largest soybean exporter. Brazil's soybean production and exports have accelerated since its trade liberalization in the mid-1990s, and it has gained extra competitiveness over the United States in the export market during the US-China trade war, when China imposed several waves of retaliatory tariffs on US soybeans. For interested readers, a tool is available on the CARD website that shows historical revealed comparative advantages for six leading export countries. In the 2019/20 marketing year, Brazil's soybean exports reached 92 million metric tons, about twice that of US soybean exports. While Brazil's increasing competitiveness in the oilseed market depends critically on its advanced soybean production technology, its adaptation of a double-cropping soy-corn system in the savanna, extended periods of currency depreciation, and declining transportation costs resulting from expanding transportation infrastructure network are key factors as well.

Date: 2021-10
New Economics Papers: this item is included in nep-int and nep-tre
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