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Fertilizer freight rate disparity in Brazil: a regional approach

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

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.

Suggested Citation

  • de Lima, Lilian M. & de Pelegrini Elias, Lilian & Caixeta-Filho, Jose V. & de Campos Coleti, Jamile, 2016. "Fertilizer freight rate disparity in Brazil: a regional approach," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(4), September.
    • Handle: RePEc:ags:ifaamr:264201
    DOI: 10.22004/ag.econ.264201
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    3. James K. Binkley & Bruce Harrer, 1981. "Major Determinants of Ocean Freight Rates for Grains: An Econometric Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(1), pages 47-57.
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