IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v120y2022ics0264837722002939.html
   My bibliography  Save this article

Agro-industrial development: Lessons from Brazil

Author

Listed:
  • da Silva Medina, Gabriel
  • Pokorny, Benno

Abstract

Agribusiness is an important development option for low-income countries that expect foreign investments to have a positive effect on the modernization and strengthening of their domestic agricultural sectors. However, evidence of these expectations being met is ambivalent, notably regarding whether domestic entrepreneurs can benefit from the thriving global agribusiness by establishing themselves in agro-industrial segments that can best remunerate capital and labor. Against this backdrop, we assessed the market share of domestic vis-à-vis multinational companies in key supply chains in Brazil, the leading example of agricultural development worldwide. The results revealed that the domestic market share was 23.9% for soybean, 47.2 % for sugarcane, 57.9 % for dairy, and 76.0 % for beef supply chains. There was high heterogeneity among agribusiness segments that can be divided into three groups: 1. Segments controlled by foreign multinationals, 2. State-supported segments controlled by domestic companies, and 3. Mixed segments controlled by both domestic and multinational companies. In mixed segments, foreign and domestic investments support the streamlining of supply chains and are thereby beneficial to the country in the short and long term. These are segments in which there are no barriers preventing the entry of domestic companies such as patents. Investments made in science and technology tend to support the development of the supply chain as a whole, not only specific companies, generating win-win situations.

Suggested Citation

  • da Silva Medina, Gabriel & Pokorny, Benno, 2022. "Agro-industrial development: Lessons from Brazil," Land Use Policy, Elsevier, vol. 120(C).
    • Handle: RePEc:eee:lauspo:v:120:y:2022:i:c:s0264837722002939
    DOI: 10.1016/j.landusepol.2022.106266
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837722002939
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.landusepol.2022.106266?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rada, Nicholas E., 2013. "ASSESSING BRAZIL’s CERRADO AGRICULTURAL MIRACLE: AN UPDATE," Revista de Economia e Agronegócio / Brazilian Review of Economics and Agribusiness, Federal University of Vicosa, Department of Agricultural Economics, vol. 11(1), pages 1-38.
    2. Fábio Augusto Santana Hage & Marcus Peixoto & José Eustáquio Ribeiro Vieira Filho, 2012. "Aquisição de Terras por Estrangeiros no Brasil: Uma Avaliação Jurídica e Econômica," Discussion Papers 1795, Instituto de Pesquisa Econômica Aplicada - IPEA.
    3. Gabriel Medina & Karim Thomé, 2021. "Transparency in Global Agribusiness: Transforming Brazil’s Soybean Supply Chain Based on Companies’ Accountability," Logistics, MDPI, vol. 5(3), pages 1-15, August.
    4. ., 2020. "Governance structure for the networked market," Chapters, in: Effective Global Carbon Markets, chapter 8, pages 159-201, Edward Elgar Publishing.
    5. Tong, Yee-Siong, 2017. "Vertical specialisation or linkage development for agro-commodity value chain upgrading? The case of Malaysian palm oil," Land Use Policy, Elsevier, vol. 68(C), pages 585-596.
    6. ., 2020. "CRADAs: market failure and government failure?," Chapters, in: Invention, Innovation and U.S. Federal Laboratories, chapter 7, pages 86-92, Edward Elgar Publishing.
    7. Darcy W.E. Allen, 2020. "The Private Governance of Hackerspaces," World Scientific Book Chapters, in: WHEN ENTREPRENEURS MEET The Collective Governance of New Ideas, chapter 4, pages 75-98, World Scientific Publishing Co. Pte. Ltd..
    8. ., 2020. "Classical theory and the role of government," Chapters, in: Classical Economic Theory and the Modern Economy, chapter 9, pages 191-201, Edward Elgar Publishing.
    9. Veland Ramadani & Esra Memili & Ramo Palalić & Erick P. C. Chang, 2020. "Governance in the Family Businesses," Springer Texts in Business and Economics, in: Entrepreneurial Family Businesses, chapter 2, pages 29-41, Springer.
    10. Dominguez, Guilherme D.F., . "As startups govtech e o futuro do governo no Brasil," Books, CAF Development Bank Of Latinamerica, number 1653.
    11. Nguyen Phuc Canh & Nguyen Thanh Binh & Su Dinh Thanh & Christophe Schinckus, 2020. "Determinants of foreign direct investment inflows: The role of economic policy uncertainty," International Economics, CEPII research center, issue 161, pages 159-172.
    12. Liena Kano & Eric W. K. Tsang & Henry Wai-chung Yeung, 2020. "Correction to: Global value chains: A review of the multi-disciplinary literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(8), pages 1353-1353, October.
    13. Medina, Gabriel & Guimaraes Ribeiro, Gessyane, 2016. "Participação Do Capital Brasileiro Na Cadeia Produtiva Da Soja: Lições Para O Futuro Do Agronegócio Nacional," Revista de Economia e Agronegócio / Brazilian Review of Economics and Agribusiness, Federal University of Vicosa, Department of Agricultural Economics, vol. 12(1-2-3), pages 1-36.
    14. Jorge Bermejo Carbonell & Richard A. Werner, 2018. "Does Foreign Direct Investment Generate Economic Growth? A New Empirical Approach Applied to Spain," Economic Geography, Taylor & Francis Journals, vol. 94(4), pages 425-456, August.
    15. Chang, Eric C. & Lin, Tse-Chun & Ma, Xiaorong, 2020. "Governance through trading on acquisitions of public firms," Journal of Corporate Finance, Elsevier, vol. 65(C).
    16. Rada, Nicholas, 2013. "Assessing Brazil’s Cerrado agricultural miracle," Food Policy, Elsevier, vol. 38(C), pages 146-155.
    17. José Elenilson Cruz & Gabriel da Silva Medina & João Ricardo de Oliveira Júnior, 2022. "Brazil’s Agribusiness Economic Miracle: Exploring Food Supply Chain Transformations for Promoting Win–Win Investments," Logistics, MDPI, vol. 6(1), pages 1-19, March.
    18. Liena Kano & Eric W. K. Tsang & Henry Wai-chung Yeung, 2020. "Global value chains: A review of the multi-disciplinary literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 577-622, June.
    19. ., 2020. "Corporate governance," Chapters, in: The Rule of Law, Economic Development, and Corporate Governance, chapter 8, pages 201-235, Edward Elgar Publishing.
    20. Economou, Fotini, 2019. "Economic freedom and asymmetric crisis effects on FDI inflows: The case of four South European economies," Research in International Business and Finance, Elsevier, vol. 49(C), pages 114-126.
    21. ., 2020. "Raising government revenue," Chapters, in: Rethinking Wealth and Taxes, chapter 2, pages 52-76, Edward Elgar Publishing.
    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. Allen, Darcy W.E. & Berg, Chris & Lane, Aaron M., 2023. "Why airdrop cryptocurrency tokens?," Journal of Business Research, Elsevier, vol. 163(C).
    2. Amankwah-Amoah, Joseph & Khan, Zaheer & Wood, Geoffrey & Knight, Gary, 2021. "COVID-19 and digitalization: The great acceleration," Journal of Business Research, Elsevier, vol. 136(C), pages 602-611.
    3. Daniela Kletzan-Slamanig & Franz Sinabell, 2021. "Der Beitrag der Konjunkturbelebung zur Transformation. Einordnung von Maßnahmen der Bundesländer," WIFO Monatsberichte (monthly reports), WIFO, vol. 94(1), pages 67-78, January.
    4. N. N., 2021. "WIFO-Monatsberichte, Heft 1/2021," WIFO Monatsberichte (monthly reports), WIFO, vol. 94(1), January.
    5. Chintapalli, Prashant & Tang, Christopher S., 2022. "The implications of crop minimum support price in the presence of myopic and strategic farmers," European Journal of Operational Research, Elsevier, vol. 300(1), pages 336-349.
    6. José Elenilson Cruz & Gabriel da Silva Medina & João Ricardo de Oliveira Júnior, 2022. "Brazil’s Agribusiness Economic Miracle: Exploring Food Supply Chain Transformations for Promoting Win–Win Investments," Logistics, MDPI, vol. 6(1), pages 1-19, March.
    7. Grillitsch, Markus & Asheim, Björn & Fünfschilling, Lea & Kelmenson, Sophie & Lowe, Nichola & Lundquist, Karl Johan & Mahmoud, Yahia & Martynovich, Mikhail & Mattson, Pauline & Miörner, Johan & Nilsso, 2023. "Rescaling: An Analytical Lense to Study Economic and Industrial Shifts," Papers in Innovation Studies 2023/11, Lund University, CIRCLE - Centre for Innovation Research.
    8. Bircol, Guilherme Augusto Carminato & Souza, Marcelo Pereira de & Fontes, Aurélio Teodoro & Chiarello, Adriano Garcia & Ranieri, Victor Eduardo Lima, 2018. "Planning by the rules: A fair chance for the environment in a land-use conflict area," Land Use Policy, Elsevier, vol. 76(C), pages 103-112.
    9. Morgan, Tyler R. & Roath, Anthony S. & Glenn Richey, Robert, 2023. "How risk, transparency, and knowledge influence the adaptability and flexibility dimensions of the responsiveness view," Journal of Business Research, Elsevier, vol. 158(C).
    10. Soliman, Salma & Papanastassiou, Marina & Saka-Helmhout, Ayse, 2023. "The role of subsidiaries in Global Value Chains (GVCs): An institutional voids perspective on LVC upgrading and integration," Journal of International Management, Elsevier, vol. 29(2).
    11. Reis, Germano Glufke & Villar, Eduardo Guedes & Prado Gimenez, Fernando Antonio & Maiolino Molento, Carla Forte & Ferri, Priscila, 2022. "The interplay of entrepreneurial ecosystems and global value chains: Insights from the cultivated meat entrepreneurial ecosystem of Singapore," Technology in Society, Elsevier, vol. 71(C).
    12. Khorana, Sangeeta & Escaith, Hubert & Ali, Salamat & Kumari, Sushma & Do, Quynh, 2022. "The changing contours of global value chains post-COVID: Evidence from the Commonwealth," Journal of Business Research, Elsevier, vol. 153(C), pages 75-86.
    13. Sant'Anna, Ana Claudia & Katchova, Ani L., 2022. "How Economic Conditions Changed the Number of U.S. Farms, 1960-88: A Replication and Extension of Gale (1990) to Midsize Farms in the U.S. and Abroad," 96th Annual Conference, April 4-6, 2022, K U Leuven, Belgium 321202, Agricultural Economics Society - AES.
    14. Cui, Lin & Gao, Qiuling & Guo, Jinyu & Ma, Pengcheng, 2022. "OFDI performance of EMNEs: A review and recommendations for future research," Journal of International Management, Elsevier, vol. 28(3).
    15. Wu, Jie & Zahoor, Nadia & Khan, Zaheer & Meyer, Martin, 2023. "The effects of inward FDI communities on the research and development intensity of emerging market locally domiciled firms: Partial foreign ownership as a contingency," Journal of Business Research, Elsevier, vol. 156(C).
    16. De Oliveira Silva, Rafael & Barioni, Luis Gustavo & Queiroz Pellegrino, Giampaolo & Moran, Dominic, 2018. "The role of agricultural intensification in Brazil's Nationally Determined Contribution on emissions mitigation," Agricultural Systems, Elsevier, vol. 161(C), pages 102-112.
    17. Zhu, Minghao & Yeung, Andy C.L. & Zhou, Honggeng, 2021. "Diversify or concentrate: The impact of customer concentration on corporate social responsibility," International Journal of Production Economics, Elsevier, vol. 240(C).
    18. Zahoor, Nadia & Khan, Zaheer & Shenkar, Oded, 2023. "International vertical alliances within the international business field: A systematic literature review and future research agenda," Journal of World Business, Elsevier, vol. 58(1).
    19. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, 2022. "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.
    20. Skidmore, Marin & Sims, Kaitlyn M. & Gibbs, Holly & Rausch, Lisa, 2021. "Health, climate, and agriculture: A case study of childhood cancer in Brazil’s Amazon and Cerrado biomes," 2021 Annual Meeting, August 1-3, Austin, Texas 313872, Agricultural and Applied Economics Association.

    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:eee:lauspo:v:120:y:2022:i:c:s0264837722002939. 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: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    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.