Title:	The economics of agribusiness in developing countries : foreign direct investments in the soybean supply chain in Brazil
Authors:	Medina, Gabriel da Silva
metadata.dc.contributor.affiliation:	Universidade de Brasília, Faculty of Agronomy and Veterinary Medicine
Assunto::	Agronegócio Países em desenvolvimento Investimentos estrangeiros Política agrícola
Issue Date:	17-Mar-2022
Publisher:	Frontiers
Citation:	MEDINA, Gabriel da Silva. The economics of agribusiness in developing countries: foreign direct investments in the soybean supply chain in Brazil. Frontiers in Sustainable Food Systems, [S. l.],v. 6, art. 842338. 2022. DOI: https://doi.org/10.3389/fsufs.2022.842338. Disponível em: https://www.frontiersin.org/journals/sustainable-food-systems/articles/10.3389/fsufs.2022.842338/full. Acesso em: 01 jul. 2024.
Abstract:	By understanding the economics of agribusiness, an important economic sector for developing countries, this article explores possibilities for a new development paradigm based on areas of opportunities created for local entrepreneurs. Based on a detailed study of the soybean market chain in Brazil, this paper illustrates that the current neoliberal economic approach has resulted in a business which is dependent on foreign multinationals. While foreign companies hold 60% of the soybean market share, Brazilian groups hold only 40% of the entire business, with the domestic market share concentrated in land (13.3%) and labor (14.3%). But the expansion of foreign investments in agribusiness in the country offers opportunities occupied by Brazilian companies, characterizing a situation of associated dependent development. Currently, 12.4% of the share held by Brazilian companies belongs to capital and technology intensive segments such as seed production (2.4%), fertilizers (4.8%), agrochemicals (0.6%), machinery (0.3%), and agro-industry trade (4.3%). The increase in the participation of Brazilian groups in agribusiness requires agricultural policies that can be inspired by a new development paradigm. Opportunities created by foreign investments can be used by domestic groups to increase their share in agro-industrial sectors. Lessons from the Brazilian case can help other developing countries to explore areas of opportunities for domestic investments in dynamic economic sectors such as agribusiness.
metadata.dc.description.unidade:	Faculdade de Agronomia e Medicina Veterinária (FAV)
DOI:	https://doi.org/10.3389/fsufs.2022.842338
Appears in Collections:	Artigos publicados em periódicos e afins

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