How To Understand The Competitiveness Of The Matopibapa Region

Transcription

1 MATOPIBAPA: The newest and perhaps final agricultural frontier in Brazil PhD Marcos Fava Neves USP / FEARP / MARKESTRAT favaneves@gmail.com Rafael Bordonal Kalaki USP / FEARP / MARKESTRAT - rkalaki@markestrat.org Vinícius Gustavo Trombin USP / FEARP / MARKESTRAT - vinicius.trombin@gmail.com Virgílo Vasconcelos Navaes UNESP / FCAV / MARKESTRAT - virgiliovn@hotmail.com

2 AGENDA: Introduction Research Questions and Objectives Method Used Literature Review Results Conclusions and Managerial Implications Major References

3 Introduction 1990s 5 Brazilian states began to stand out as a new agricultural frontier in Brazil: Maranhão (MA), Tocantins (TO), Piauí (PI), Bahia (BA), and Pará (PA), called MATOPIBAPA Located in the Northeast and North regions of Brazil (2,000 km from the city of São Paulo) occupy the Brazilian cerrado region (savannah-like grasslands 2011/12 grain production 15.2 million tonnes (10% total BR prod.) Corn and soybeans represent approximately 80% of all grains farmed in Brazil. Grain production in the region grew 220% in the last decade

4 Research Questions and Objectives Research question: Does this new Brazilian agriculture frontier have the capacity to expand its production of soybeans and corn in a competitive manner to become a potential world supplier of grains? Objectives of the study: To present an analysis of the competitiveness of the MATOPIBAPA region Understanding the capacity for expansion of soy and corn.

5 Literature Review AUTHOR YEAR CONTRIBUTIONS Goldberg 1968 Commodity system approach Morvan 1985 Chain ( filière ) Batalha 2001 Chain analysis Lazzarini et al Integrate chain and network concepts Porter 1980 Porter's Five Forces Porter 1993 Porter's Diamond Model Wright, Kroll e Parnell 2000 SWOT analysis Hardman et al increasing the competitiveness

6 Method Used 1 Literature Review 2 survey of primary and secondary data 3 compiling the results Porter s Diamond of National Competitive Advantage, analysis of competitiveness of any geographical unit in-depth interviews with key players, public data base, and papers analyzed and strategies were suggested, identifying points of attention, strategic implications

7 Results: Overview Grain production: 15.2 million tonnes - 10% of Brazil s over production (grown 43% over the past 10 years) Soy: around 50% of grain production and roughly 12% of all soybeans produced in Brazil region s share in production jumped from 5% to 9%

8 Results: Overview 33 million hectares subject to change of land use; Lower price of land (70% lower compared to the Center-West region and 300% lower compared to Paraná) Growth in the usage of fertilizer Increase in agricultural financing (3x) Increased capacity for soybean processing (2x) There are over 170 projects improving the region s Logistics System Transgenic soybeans that are more adapted to the reality of the region should be on the market.

9 Results: SWOT Analysis of MATOPIBAPA

10 Results: Porter Diamond Analysis

11 Results: Paths of action and suggested actions

12 Conclusions and Managerial Implications The rapid expansion of agriculture was not accompanied by sufficient structural improvements in research, road networks, and skilled labor, among others Growth was significant, driven by low prices of land, rising prices of commodities, and the accumulated knowledge of business groups and farmers who have migrated to the region. The region presents a strong growth trend in agricultural production, especially corn and soy This growth will be supported the following pillars: increased investments in research, land prices, investments in road infrastructure, proximity to ports; growing demand; installation of processing plants in the region and development of livestock.

13 Major References: Goldberg. R.A Agribusiness Coordination: A System approach to Wheat. Soybean and Florida Orange Economies. Division of Research. Graduate School of Business and Administration. Harvard University. 256 p. Hardman, P. A.; Darroch, M. A. G.; Ortmann, G. F Improving cooperation to make the South African fresh apple export value chain more competitive. Journal on Chain and Network Science, Wageningen, v. 2, n. 1, p Kotler, P. Administração de marketing análise, planejamento, implementação e controle. São Paulo: Prentice Hall, p. Lazzarini. S. G. Chaddad. F. R. Cook. M. L Integrating supply chain and network analyses: The study of net chains. Journal on Chain and Network Science. Wageningen. v. 1. n. 1. p Morvan. Y Filière de Production. in Fondaments d economie industrielle. Economica. pp Neves, M. F Método para planejamento e gestão estratégica de sistemas agroindustriais (GESis). São Paulo: RAUSP, v.43, n.4, p , out./nov./dez. Wright, P.; Kroll, M. K.; Parnell, J. Administração estratégica: conceito. Tradução: Celso A. Rimoli & Lenita R. Esteves. São Paulo: Atlas, p.

14 Thank You