{"title":"Impacts of Transportation and Logistics on Brazilian Soybean Prices and Exports","authors":"Olivia Fliehr, Y. Zimmer, Linda H. Smith","doi":"10.5325/TRANSPORTATIONJ.58.1.0065","DOIUrl":null,"url":null,"abstract":"Abstract:As Brazilian soybean exports doubled between 2001/02 and 2011/12 and major production areas consolidated in remote inland Cerrado regions, moving product to port has proven to be a challenge. A review of the literature, data analysis, and interviews with experts in the logistics chain revealed that a lack of grain storage, overreliance on trucking, poor road conditions, and inefficient operations at rail terminals and ports impede a smooth flow of grain from farm to port. Because of the comparatively low per-unit values of agricultural bulk commodities, transportation may account for a large share of the total cost of soybean exports. As a result, it was hypothesized that increases in transportation costs may reduce farm-gate prices, affecting producer profitability and, thus, national production. To test that hypothesis, this study examined transportation costs from inland production regions to traffic hubs and the Santos seaport. A comparison of theoretical producer prices calculated based on logistics costs versus actual local prices was employed to confirm that transport inefficiencies have led to depressed farm gate prices.","PeriodicalId":46529,"journal":{"name":"Transportation Journal","volume":"58 1","pages":"65 - 77"},"PeriodicalIF":1.1000,"publicationDate":"2019-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"15","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Transportation Journal","FirstCategoryId":"5","ListUrlMain":"https://doi.org/10.5325/TRANSPORTATIONJ.58.1.0065","RegionNum":4,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 15
Abstract
Abstract:As Brazilian soybean exports doubled between 2001/02 and 2011/12 and major production areas consolidated in remote inland Cerrado regions, moving product to port has proven to be a challenge. A review of the literature, data analysis, and interviews with experts in the logistics chain revealed that a lack of grain storage, overreliance on trucking, poor road conditions, and inefficient operations at rail terminals and ports impede a smooth flow of grain from farm to port. Because of the comparatively low per-unit values of agricultural bulk commodities, transportation may account for a large share of the total cost of soybean exports. As a result, it was hypothesized that increases in transportation costs may reduce farm-gate prices, affecting producer profitability and, thus, national production. To test that hypothesis, this study examined transportation costs from inland production regions to traffic hubs and the Santos seaport. A comparison of theoretical producer prices calculated based on logistics costs versus actual local prices was employed to confirm that transport inefficiencies have led to depressed farm gate prices.
期刊介绍:
Transportation Journal is devoted to the publication of articles that present new knowledge relating to all sectors of the supply chain/logistics/transportation field. These sectors include supply chain/logistics management strategies and techniques; carrier (transport firm) and contract logistics firm (3PL and 4PL) management strategies and techniques; transport economics; regulation, promotion, and other dimensions of public policy toward transport and logistics; and education.