Fertilizer freight rate disparity in Brazil: a regional approach

Lilian M. de Lima, Lilian de Pelegrini Elias, Jose V. Caixeta-Filho and Jamile de Campos Coleti

International Food and Agribusiness Management Review, 2016, vol. 19, issue 4

Abstract: An increase in Brazilian agricultural product exportation with a concurrent increase in the use of fertilizer has put pressure on the country’s already overtaxed transportation system and expanded the number and intensity of transportation bottlenecks, especially during the grain harvest and planting seasons. Problems with the transportation system have led to an increase in fertilizer transportation costs and a disproportionate increase in fertilizer’s share of total agricultural production costs, highlighting the need to discover the most economic fertilizer transportation routes. Our research found a significant variance in fertilizer transportation costs among different Brazilian transport regions, referred to as transport corridors in this study. Literature on the subject has found that regional fertilizer shipping price variations are often contingent on the presence of shipping intensive industries, ports and storage centers. Using a comparative analysis based on an econometric model, this study examines the effect of intra-regional fertilizer transportation routes on shipping costs and clarifies the dynamics of fertilizer transport in Brazil.

Keywords: Industrial; Organization (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ifaamr:264201

DOI: 10.22004/ag.econ.264201

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