African Journal of
Agricultural Research

  • Abbreviation: Afr. J. Agric. Res.
  • Language: English
  • ISSN: 1991-637X
  • DOI: 10.5897/AJAR
  • Start Year: 2006
  • Published Articles: 6786

Full Length Research Paper

Exports and market power of the soybean processing industry in Brazil between 1980 and 2010

Nilson Luiz Costa
  • Nilson Luiz Costa
  • Federal University of Santa Maria (UFSM), Palmeira das Missoes, Rio Grande do Sul, Brazil.
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Antonio Cordeiro de Santana
  • Antonio Cordeiro de Santana
  • Federal Rural University of Amazonia (UFRA), Belem, Para, Brazil
  • Google Scholar

  •  Received: 11 December 2013
  •  Accepted: 20 May 2015
  •  Published: 25 June 2015


The objective of this research was to identify whether the majors of the soybean production chain in Brazil have conditions to design their market power and capture part of the economic surplus farmers? In this context, based on the analysis of price elasticity, drawn from the postulates of neoclassical microeconomic theory, it was found that exports of soybeans and soybean meal are inelastic to price. Therefore, companies are able to exercise their market power, mainly because they are protected by barriers to entry. In contrast, exports of soybean oil are price elastic and therefore, the soybean industry tends to seek profit on transactions with farmers to improve their competitiveness in the soybean oil segment. As a result, the Brazilian government should use mechanisms of economic policy to foster competition in the market.


Key words: Soybean supply chain, agribusiness, market structure, export function, price elasticity.