Investment Potential for New Sugarcane Plants in Brazil Based on Assessment of Operational Efficiency

Alexandre Pereira Salgado Junior, Fabio Vogelaar Carlucci, Carlos Alberto Grespan Bonacim, Juliana Chiaretti Novi and Antonio Carlos Pacagnella Junior

International Food and Agribusiness Management Review, 2014, vol. 17, issue 2, 24

Abstract: The aim of this study is to elaborate on a map of agricultural potential for investing in new sugarcane plants in Brazil. A study of operational efficiency was conducted using Data Envelopment Analysis (DEA) in which it was possible to identify in 2009 the most efficient plants out of a universe of 355. Quantitative analysis suggests a tendency for efficient plants to be large and located in the state of São Paulo. Operational efficiency was proven to depend on the variables of size and location in which the state of São Paulo has a greater concentration of favorable edaphoclimatic conditions for extracting sugarcane with higher sucrose content. An analysis of agricultural potential in the Brazilian territory suggests the installation of new energy plants in regions that present favorable edaphoclimatic conditions and greater efficiency indexes. The states that were proven favorable, in terms of operational efficiency, are Alagoas, Pernambuco and certain regions of Minas Gerais, Paraná and Mato Grosso do Sul.

Keywords: Agribusiness; Crop Production/Industries; Demand and Price Analysis; Environmental Economics and Policy; Financial Economics; Land Economics/Use; Production Economics; Productivity Analysis (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ifaamr:167904

DOI: 10.22004/ag.econ.167904

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