Competitiveness for soybean production between Brazil and Paraguay

Abstract

Brazil is a consolidated producer in some agricultural sectors, presenting competitiveness and capacity to expand its production. Some countries have shown investment capacity and increased production, such as Paraguay, which has become increasingly important in the international agro-export scenario. Thus, the objective of this research was to analyze the productivity, profitability and competitiveness of soybean production in two regions, one in Brazil and the other in Paraguay, comparing the production systems of these two countries and comparing their competitiveness. The study was developed using the Policy Analysis Matrix (MAP), which allows the comparison of different productive chains and different producing regions through their internal and external costs. The results showed that although Brazil is competitive, it is possible to expand the development of the chain with investments in more efficient policies for the chain and that by the investments made in the last years, the productive system of Paraguay presents greater competitiveness than the productive system of Brazil. It is concluded that the high production of Brazil makes it competitive and that policies of incentives to productivity in Paraguay have generated positive results.