 Energy cost to produce and transport crops – The driver for crop prices? Case study for Mato Grosso, BrazilYelto Zimmer and Giulio V. Marques Energy, 2021, vol. 225, issue C Abstract: In recent years, agricultural commodity prices have followed trends similar to those observed in crude oil markets. A respective hypothesis to explain this finding: Agricultural production is so energy intensive that increasing energy costs drive cost of production of crops and ultimately commodity prices. This paper will provide answers to the question: What is the share of energy costs in total cost of production for agricultural commodities, including the transport of these commodities to ports? A case study-based calculation for cost of production and transport of soybeans and corn produced in Mato Grosso, Brazil reveals that energy costs play a significant role in total cost at the port. However, given the fact that this share is around 35%, at most, it does not seem likely that a strong correlation between crude oil prices and agricultural commodity prices is caused primarily by the energy costs of crop production and related transport. Keywords: Energy cost incidence crop production; Interaction agricultural commodity and energy prices (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:225:y:2021:i:c:s0360544221005090 DOI: 10.1016/j.energy.2021.120260 Access Statistics for this article Energy is currently edited by Henrik Lund and Mark J. Kaiser More articles in Energy from Elsevier |
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