IDEAS home Printed from https://ideas.repec.org/p/ags/uamstr/145637.html
   My bibliography  Save this paper

The Potential Impact of Brazil’s Transportation Efficiencies on World Cotton Trade

Author

Listed:
  • Salin, Delmy L.

Abstract

This paper is a summary of: Rafael de Farias Costa, C. Parr Rosson, III, and Flynn J. Adcock, Transportation Infrastructure in Brazil: Impacts and Implications for Global Cotton Trade, Texas A&M, CNAS 2012-0. May 2012. Web. Brazil is the third largest cotton exporter after the United States and Uzbekistan. Cotton production in Brazil expanded from 2 million bales in the late 1990s to about 9.3 million bales in 2011. In 2007, Brazil began a comprehensive logistical investment plan to increase competitiveness in the world agricultural market. To increase transportation efficiencies, the Brazilian Government wants to reduce export route distances and port congestion by shifting exports from the southern ports to the north and northeast port regions. Texas AgriLIFE Research scientists estimated the impact of Brazil improvements in transportation infrastructure on cotton production, prices, and exports. Transportation costs for different regions within Brazil were estimated to reflect movements from mill to port. An origin-destination matrix of the Brazilian cotton industry that tracks cotton flows within the country was developed and validated. Findings indicate that a 2- to 3-percent transportation cost reduction would not have a significant impact on the world cotton trade. However, the United States may benefit slightly Brazil main cotton export routes from a 2-percent cost reduction, increasing exports by 640 bales, raising prices 2 cents a bale, and growing revenue by $457,900. If transportation costs drop by 10 percent, Brazilian exports could increase by 64,830 bales, raising prices by $3.61 per bale and increasing revenue by $27.8 million. India and the United States might lose market share. U.S. losses could include 4,490 fewer bales exported at a price of $0.28 less per bale and lower cotton export revenues of $5.7 million.

Suggested Citation

  • Salin, Delmy L., 2013. "The Potential Impact of Brazil’s Transportation Efficiencies on World Cotton Trade," Analysis 145637, United States Department of Agriculture, Agricultural Marketing Service, Transportation and Marketing Program.
  • Handle: RePEc:ags:uamstr:145637
    DOI: 10.22004/ag.econ.145637
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/145637/files/Brazil%20Cotton.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.145637?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
    ---><---

    More about this item

    Keywords

    Agribusiness; Agricultural Finance; International Relations/Trade; Marketing;
    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:uamstr:145637. 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.

    We have no bibliographic references for this item. You can help adding them by using 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/amsgvus.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.