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Market Access and Agricultural Diversification: An Analysis of Brazilian Municipalities

Author

Listed:
  • Bruno Benzaquen Perosa

    (Institute of Economics and International Relations, Federal University of Uberlandia, Uberlandia 38405-314, Brazil)

  • Ramon Felipe Bicudo da Silva

    (Núcleo de Estudos e Pesquisas Ambientais, Universidade Estadual de Campinas, Campinas 13083-867, Brazil)

  • Mateus Batistella

    (Núcleo de Estudos e Pesquisas Ambientais, Universidade Estadual de Campinas, Campinas 13083-867, Brazil
    Brazilian Agricultural Research Corporation (Embrapa Digital Agriculture), Campinas 13083-886, Brazil)

Abstract

Market access has a deep impact on farmers’ decisions, influencing their choice of crops and technology adoption. Crop diversification depends on the availability of markets to trade the agricultural portfolio. This study explored how market access impacted the level of diversification in 5565 Brazilian municipalities from 2013 to 2021. We developed a regression model considering how variables related to market access and commercialization (storage, roads, distribution centers, commercialization credit, among others) affected a local (municipality level) diversification index. After environmental variables were controlled, the results indicated that most of the market access variables have a significant impact on diversification. We also used map analysis to analyze the regional patterns of specialization in Brazilian agriculture, concluding that logistics and commercialization infrastructure have strong influence on the level of diversification in Brazil, a major agricultural powerhouse in the world. The results indicate that market access variables affect diversification and should be considered by policy makers aiming to increase sustainability in agriculture and livestock.

Suggested Citation

  • Bruno Benzaquen Perosa & Ramon Felipe Bicudo da Silva & Mateus Batistella, 2024. "Market Access and Agricultural Diversification: An Analysis of Brazilian Municipalities," Land, MDPI, vol. 13(1), pages 1-13, January.
    • Handle: RePEc:gam:jlands:v:13:y:2024:i:1:p:61-:d:1312941
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    References listed on IDEAS

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