Fertilizer Distribution Flows and Logistics Costs in Brazil: Changes and Benefits Arising from Investments in Port Terminals

Debora da Costa Simoes, Jose Vicente Caixeta-Filho and Udatta S. Palekar

International Food and Agribusiness Management Review, 2018, vol. 21, issue 3

Abstract: This study analyzes the impact of anticipated investments to alter Brazilian port infrastructure on fertilizer flows and fertilizer transportation logistics costs using a linear programming model designed for the task. The most notable among these investments are directed toward accelerating port development in Brazil’s “Northern-Arc”, thereby increasing fertilizer supply to new markets opening throughout the country’s expanding agricultural frontier, particularly in northern Mato Grosso state, while increasing supply to existing markets. Results from model runs show that the anticipated port infrastructure investments should ensure nationwide fertilizer logistics savings of US$ 845 million over the 2017 through 2025 period. Although these estimated benefits are outstanding, the study indicates that further expansion of Brazil’s port system, particularly in the Northern-Arc, presents additional opportunities. Model projections were that in 2025, after all planned infrastructure improvements are operational, port terminals will be near full capacity, which should make planning for future projects a current priority.

Keywords: Agricultural and Food Policy; Demand and Price Analysis; Farm Management (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ifaamr:269670

DOI: 10.22004/ag.econ.269670

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