An increase in Brazilian agricultural product exportation with a concurrent increase in the use of fertilizer has put pressure on the country’s already overtaxed transportation system and expanded the number and intensity of transportation bottlenecks, especially during the grain harvest and planting seasons. Problems with the transportation system have led to an increase in fertilizer transportation costs and a disproportionate increase in fertilizer’s share of total agricultural production costs, highlighting the need to discover the most economic fertilizer transportation routes. Our research found a significant variance in fertilizer transportation costs among different Brazilian transport regions, referred to as transport corridors in this study. Literature on the subject has found that regional fertilizer shipping price variations are often contingent on the presence of shipping intensive industries, ports and storage centers. Using a comparative analysis based on an econometric model, this study examines the effect of intra-regional fertilizer transportation routes on shipping costs and clarifies the dynamics of fertilizer transport in Brazil.
CASE STUDY
Fertilizer freight rate disparity in Brazil: a regional approach
Lilian M. de Lima Related information
aAssistant Professor, Escola Superior de Agricultura Luiz de Queiroz (ESALQ), University of São Paulo (USP), Padua Dias, 11 Avenue, 13400-970, Piracicaba/SP, Brazil
, Lilian de Pelegrini Elias Related informationbDoctoral student and master in Economics Development, Economy Institute (IE), University of Campinas (UNICAMP), Pitágoras street 353, 13083-857 Barão Geraldo, Campinas/SP, Brazil
, José V. Caixeta-Filho Related informationcFull Professor, Escola Superior de Agricultura Luiz de Queiroz (ESALQ), University of São Paulo (USP), ESALQ-LOG (coordination), Padua Dias, 11 Avenue, 13418-900 Piracicaba/SP, Brazil
*Corresponding author: jose. caixeta@usp. br
, Jamile de Campos Coleti Related information*Corresponding author: jose.
bDoctoral student and master in Economics Development, Economy Institute (IE), University of Campinas (UNICAMP), Pitágoras street 353, 13083-857 Barão Geraldo, Campinas/SP, Brazil
International Food and Agribusiness Management Review: 19
(4)- Pages: 109 - 128
Published Online: November 22, 2016
Abstract
Keywords: fertilizer, transport, econometric, freight
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Issue Details
International Food and Agribusiness Management Review
International Food and Agribusiness Management Review
Online ISSN: 1559-2448
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