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Brazil's Beef Production and Its Efficiency: A Comparative Study of Scale Economies

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  • Somwaru, Agapi
  • Valdes, Constanza

Abstract

In recent years, Brazil –one of the world’s main suppliers of agricultural products- has been raising beef productivity and exports. In Brazil, large farm land availability, ample feedstuffs supplies, a large domestic consumer market, and liberalization of trade barriers have allowed large firms to achieve economies of size that have made the country a major, growing source of meat production. Major differences exist between the modern and the traditional segments of the beef-cattle sub-sector. To assess competitive strength of Brazil's livestock operations, we estimate non-parametrically the efficiency and scale elasticity of 450 cattle operations. Our hypothesis is that large-size specialized farms exhibit cost economies and higher efficiency levels than other beef production operations.

Suggested Citation

  • Somwaru, Agapi & Valdes, Constanza, 2004. "Brazil's Beef Production and Its Efficiency: A Comparative Study of Scale Economies," Conference papers 331294, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331294
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    References listed on IDEAS

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    2. Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers Archive 1488, Iowa State University, Department of Economics.
    3. Richard E. Just & David Zilberman & Eithan Hochman & Ziv Bar-Shira, 1990. "Input Allocation in Multicrop Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(1), pages 200-209.
    4. Diewert, Walter E & Wales, Terence J, 1987. "Flexible Functional Forms and Global Curvature Conditions," Econometrica, Econometric Society, vol. 55(1), pages 43-68, January.
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