Evaluating the Dynamics of Brazil's soybean trade: a comprehensive emergy analysis of resource dependencies

Abstract

This study examines Brazil's soybean trade through the dual lens of economic and environmental considerations, employing emergy synthesis to reveal hidden resource dependencies and costs within production and export processes. It bridges ecological modeling and sustainability science by analyzing Brazil's soybean trade through the interplay of economic and environmental dimensions. By applying emergy-based indices—such as the Emergy Exchange Ratio, Emergy Benefit Ratio, and Opportunity Ratio - the analysis offers a nuanced understanding of trade dynamics between 2015 and 2019, particularly with partners like China and Europe. The trade with China showed an average EER of 0.27, meaning that for every unit of emergy value Brazil exported in raw soybeans, it received substantially more emergy in currency terms. In comparison, trade with European partners, such as Spain and The Netherlands, with EE>1, was notably unfavorable for Brazil. The Opportunity Ratio is another key metric to indicate the potential economic gains from processing raw soybean commodities domestically. The analysis revealed that, on average, domestic processing could potentially lead to a GDP increase of 17 % from the soybean sector. Highlighting the environmental implications of reliance on non-renewable inputs such as fertilizers and pesticides, the study underscores the potential benefits of domestic soybean processing for enhancing GDP, reducing import dependency, and fostering equitable resource use. The research provides insights into sustainability through carefully integrating economic and ecological perspectives, informing strategies for addressing environmental costs while fostering balanced global trade practices.