IDEAS home Printed from https://ideas.repec.org/p/ags/uersib/340506.html
   My bibliography  Save this paper

Soybean Production, Marketing Costs, and Export Competitiveness in Brazil and the United States

Author

Listed:
  • Valdes, Constanza
  • Gillespie, Jeffrey
  • Dohlman, Erik

Abstract

The production of soybeans, the fourth leading crop produced globally, is projected to reach a record level in marketing year (MY) 2023/24. Combined, soybeans and their products—soybean meal and soybean oil—are the most traded agricultural commodity, accounting for nearly 9 percent of the total value of global agricultural trade. Brazil is the world’s largest soybean producer and exporter, with the United States and Brazil jointly supplying 89 percent of soybean exports to the world in MY 2021/22 (USDA, Foreign Agricultural Service [FAS], 2023). Soybeans stand out as a crucial crop in the expansion of Brazil’s farm sector and the country’s ascent as a top global supplier of agricultural products. This report focuses on the export competitiveness for soybeans in Brazil and the United States over the MY 2017/18–2021/22 periods by comparing farm-level production costs, producer returns, the cost of internal transportation, and the cost of shipping to a common export destination. With soybean production in Brazil expected to reach a record high in MY 2023/24, a weaker value of Brazil’s currency, and the country’s exporting capabilities expecting a boost (from expanding transportation infrastructure), changes in the competitiveness of Brazil will have important implications for U.S. and international agricultural markets.

Suggested Citation

  • Valdes, Constanza & Gillespie, Jeffrey & Dohlman, Erik, 2023. "Soybean Production, Marketing Costs, and Export Competitiveness in Brazil and the United States," Economic Information Bulletin 340506, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uersib:340506
    DOI: 10.22004/ag.econ.340506
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/340506/files/eib-262.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.340506?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Andrew Muhammad & Stephen A. Smith & Jason H. Grant, 2022. "Can China meet its purchase obligations under the Phase One Trade Agreement?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(3), pages 1393-1408, September.
    2. Morgan, Stephen & Arita, Shawn & Beckman, Jayson & Ahsan, Saquib & Russell, Dylan & Jarrell, Philip & Kenner, Bart, 2022. "The Economic Impacts of Retaliatory Tariffs on U.S. Agriculture," USDA Miscellaneous 316892, United States Department of Agriculture.
    3. Muhammad, Andrew & Smith, S. Aaron, 2018. "Evaluating the Impact of Retaliatory Tariffs on U.S. Soybeans in China," Extension Reports 302908, University of Tennessee, Department of Agricultural and Resource Economics.
    4. Fang, Yi & Shao, Zhiquan, 2022. "The Russia-Ukraine conflict and volatility risk of commodity markets," Finance Research Letters, Elsevier, vol. 50(C).
    5. Colussi, Joana & Schnitkey, Gary, 2021. "New Soybean Record: Historical Growing of Production in Brazil," farmdoc daily, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics, vol. 11(49), March.
    6. Birgit Meade, & Puricelli, Estefania & McBride, William D. & Valdes, Constanza & Hoffman, Linwood & Foreman, Linda & Dohlman, Erik, 2016. "Corn and Soybean Production Costs and Export Competitiveness in Argentina, Brazil, and the United States," Economic Information Bulletin 262143, United States Department of Agriculture, Economic Research Service.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Padilla, Samantha & Ufer, Danielle J. & Morgan, Stephen & Link, Noah, 2023. "U.S. Export Competitiveness in Select Crop Markets," USDA Miscellaneous 333553, United States Department of Agriculture.
    2. Naeem, Muhammad Abubakr & Arfaoui, Nadia, 2023. "Exploring downside risk dependence across energy markets: Electricity, conventional energy, carbon, and clean energy during episodes of market crises," Energy Economics, Elsevier, vol. 127(PB).
    3. Qian, Chenqi & Zhang, Tianding & Li, Jie, 2023. "The impact of international commodity price shocks on macroeconomic fundamentals: Evidence from the US and China," Resources Policy, Elsevier, vol. 85(PB).
    4. Xie, Yutang & Cao, Yujia & Li, Xiaotao, 2023. "The importance of trade policy uncertainty to energy consumption in a changing world," Finance Research Letters, Elsevier, vol. 52(C).
    5. Khan, Nasir & Mejri, Sami & Hammoudeh, Shawkat, 2024. "How do global commodities react to increasing geopolitical risks? New insights into the Russia-Ukraine and Palestine-Israel conflicts," Energy Economics, Elsevier, vol. 138(C).
    6. Hanfei Wu & Ruochen Jin & Ao Liu & Shiyun Jiang & Li Chai, 2022. "Savings and Losses of Scarce Virtual Water in the International Trade of Wheat, Maize, and Rice," IJERPH, MDPI, vol. 19(7), pages 1-12, March.
    7. Ahmed, Shamima & Assaf, Rima & Rahman, Molla Ramizur & Tabassum, Fariha, 2023. "Is geopolitical risk interconnected? Evidence from Russian-Ukraine crisis," The Journal of Economic Asymmetries, Elsevier, vol. 28(C).
    8. Yi Fang & Qirui Tang & Yanru Wang, 2024. "Geopolitical Risk and Cryptocurrency Market Volatility," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 60(14), pages 3254-3270, November.
    9. Hu, Zinan & Borjigin, Sumuya, 2024. "The amplifying role of geopolitical Risks, economic policy Uncertainty, and climate risks on Energy-Stock market volatility spillover across economic cycles," The North American Journal of Economics and Finance, Elsevier, vol. 71(C).
    10. Cao, Fangzhi & Su, Chi-Wei & Sun, Dian & Qin, Meng & Umar, Muhammad, 2024. "U.S. monetary policy: The pushing hands of crude oil price?," Energy Economics, Elsevier, vol. 134(C).
    11. Su, Chi-Wei & Yang, Shengyao & Dumitrescu Peculea, Adelina & Ioana Biţoiu, Teodora & Qin, Meng, 2024. "Energy imports in turbulent eras: Evidence from China," Energy, Elsevier, vol. 306(C).
    12. Zhou, Wei-Xing & Dai, Yun-Shi & Duong, Kiet Tuan & Dai, Peng-Fei, 2024. "The impact of the Russia-Ukraine conflict on the extreme risk spillovers between agricultural futures and spots," Journal of Economic Behavior & Organization, Elsevier, vol. 217(C), pages 91-111.
    13. Aree Wangsupphaphol & Surachai Chaitusaney & Mohamed Salem, 2023. "A Techno-Economic Assessment of a Second-Life Battery and Photovoltaics Hybrid Power Source for Sustainable Electric Vehicle Home Charging," Sustainability, MDPI, vol. 15(7), pages 1-19, March.
    14. Soojung Ahn & Dongin Kim & Sandro Steinbach, 2023. "The impact of the Russian invasion of Ukraine on grain and oilseed trade," Agribusiness, John Wiley & Sons, Ltd., vol. 39(1), pages 291-299, January.
    15. Zhang, Li & Wang, Lu & Peng, Lijuan & Luo, Keyu, 2023. "Measuring the response of clean energy stock price volatility to extreme shocks," Renewable Energy, Elsevier, vol. 206(C), pages 1289-1300.
    16. Ragasa, Catherine & Lambrecht, Isabel & Kufoalor, Doreen S., 2018. "Limitations of Contract Farming as a Pro-poor Strategy: The Case of Maize Outgrower Schemes in Upper West Ghana," World Development, Elsevier, vol. 102(C), pages 30-56.
    17. Kamal, Md Rajib & Ahmed, Shaker & Hasan, Mostafa Monzur, 2023. "The impact of the Russia-Ukraine crisis on the stock market: Evidence from Australia," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    18. Katherine D. Lee & David Finnoff & Peter Daszak, 2024. "Optimal Ecosystem Change in the Presence of Ecosystem-Mediated Human Health Impacts," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(8), pages 2143-2162, August.
    19. Ridley, William & Devadoss, Stephen, . "Determinants of Policy Responses in the US–China Tit-for-Tat Trade War," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 49(2).
    20. Kristína Hudecová & Miroslava Rajčániová, 2023. "The impact of geopolitical risk on agricultural commodity prices," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(4), pages 129-139.

    More about this item

    Keywords

    Crop Production/Industries; International Relations/Trade; Land Economics/Use; Livestock Production/Industries; Marketing; Production Economics; Productivity Analysis;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uersib:340506. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ersgvus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.