Files
Abstract
The Brazilian agribusiness sector has been achieving record harvests
and offering important contributions for the national trade balance. Nonetheless,
still little is known about the actual share of the business that is hold by
Brazilian companies vis-à-vis multinationals, as well as the opportunities for
national groups to enlarge their share in the business. This paper assesses the
soybean market chain, from the field to the market. Results reveal that 40% of
the soybean business carried out in Brasil is actually in the hands of Brazilian
companies. The national share is concentrated in land (13.3%), labor (14.3%)
and natural resources (which were not valuated in financial terms). Only 12.4%
of the share hold by Brazilian companies belongs to capital and technology
intensive sectors, such as production of seeds (2.4%), fertilizers (4.8%),
pesticides (0.6%), machinery (0.3%) and agro-industry (4.4%). However, even
with the oligopoly of multinationals along the soybean market chain, recent
business growth offers opportunities for national companies. The future of
the Brazilian agribusiness relies on increasing vertical integration of national
capital along the market chain, adding to the current narrow view that promotes
only the horizontal expansion into new agricultural frontiers.