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The supply chain of Brazilian maize and soybeans: the effects of segregation on logistics and competitiveness

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  • de Oliveira, Andrea L. R.
  • Alvim, Augusto M.

Abstract

Despite the significant advances of Brazilian agriculture, transportation and storage costs still constitute the main barriers to the Brazilian agribusiness. The aim of this article is to analyze the effect of segregation of maize and soybeans in the Brazilian transport and storage logistics, especially genetically modified grains. In the context of the guidelines of the Cartagena Protocol on Biosafety (CPB) as well as of the competitiveness in the international market, we develop a spatial equilibrium model in the form of a mixed complementarity problem. The competitiveness of Brazilian maize and soybeans on the international market is compromised by the inefficient logistics and slow responses to the demands of the CPB. The contribution of the paper is to evaluate how regulatory issues of a segment, in this case biotechnology, may interfere with logistic infrastructure projects.

Suggested Citation

  • de Oliveira, Andrea L. R. & Alvim, Augusto M., 2016. "The supply chain of Brazilian maize and soybeans: the effects of segregation on logistics and competitiveness," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(1), October.
    • Handle: RePEc:ags:ifaamr:264206
    DOI: 10.22004/ag.econ.264206
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    References listed on IDEAS

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    3. Guillaume P. Gruère & Mark W. Rosegrant, 2008. "Assessing the Implementation Effects of the Biosafety Protocol's Proposed Stringent Information Requirements for Genetically Modified Commodities in Countries of the Asia Pacific Economic Cooperation," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(2), pages 214-232.
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    5. Huang, Jikun & Zhang, Deliang & Yang, Jun & Rozelle, Scott & Kalaitzandonakes, Nicholas, 2008. "Will the Biosafety Protocol hinder or protect the developing world: Learning from China's experience," Food Policy, Elsevier, vol. 33(1), pages 1-12, February.
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    Cited by:

    1. William, Wilson & Dahl, Bruce & Hertsgaard, David, 2020. "Soybean quality differentials, blending, testing and spatial arbitrage," Journal of Commodity Markets, Elsevier, vol. 18(C).
    2. Augusto Mussi Alvim & Adelar Fochezatto, 2020. "The Impacts of Soy-Based Biodiesel on the Main Soy Producers in the International Market," Journal of Agricultural Studies, Macrothink Institute, vol. 8(2), pages 498-517, June.

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