Files
Abstract
This study aims to analyze the competitivity of the cotton production in
Brazil and United States of America (USA) in terms of production costs, taking
into consideration the 2003/04 crop season. In Brazil, data were colleted in “panel
conferences” in the state of Mato Grosso (Campo Novo do Parecis and Pimavera do
Leste) and also in the north of the Parana state. USA’s data came from secondary
sources. The results showed that Brazil has a better competitivity, with good
productivity, but high costs per hectare. The risk of the culture is high, given the
short margins and the sunk costs. In USA, the average productivity is smaller
than in Brazil; the costs are relatively high and the margins are negative in most
regions. Results show that the sustainability of the cotton industry in USA is
artificial, and dependent of government support.