The Determinants of Transport Costs in Brazil's Agribusiness

Jun 2008
This paper discusses Brazil's transportation infrastructure policy implications. This sector is crucial for the competitive success of an agricultural enterprise or of the entire agricultural sector. The Brazilian Government has proposed investment in large projects to improve transportation infrastructure in the country's Center-West and North regions. These projects intend explicitly to develop the commodity delivery system in those regions, which should stimulate the continued expansion of soybean cultivation into northern areas. The shape of the present and future Brazilian transportation system, in particular the location of and access to efficient transportation corridors, is a crucial variable in the determination of processing plant location by private investors. This paper was presented at the Fourth LAEBA Annual Meeting held in Lima, Peru, on June 17, 2008.