Changes in exports’ mix and primatization in Brazilian soybeans complex

Abstract

Due to concerns about deindustrialization and primarization of exports, this study aims to measure the change in the export mix of soybeans and soybean-products and calculate its effects, both in terms of revenue losses, as well as in the change of trading partners and in investment in processing plants. Moreover, it was investigated whether the country has been exposed to higher risk in the new trading pattern. Results show that the processing capacity increased less than soybeans production and that Brazil lost more than US$ billions in exports revenue between 1997 and 2013. In addition, the export sector has operated under a riskier environment as the sales have been concentrated in a riskier market (grains) and in only one importer (China). The greater beneficiary of this new pattern of Brazil’s trade was Argentina, which has become the main exporter of soybean products.