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Abstract

The Brazilian agribusiness sector has been achieving record harvests and offering important contributions for the national trade balance. Nonetheless, still little is known about the actual share of the business that is hold by Brazilian companies vis-à-vis multinationals, as well as the opportunities for national groups to enlarge their share in the business. This paper assesses the soybean market chain, from the field to the market. Results reveal that 40% of the soybean business carried out in Brasil is actually in the hands of Brazilian companies. The national share is concentrated in land (13.3%), labor (14.3%) and natural resources (which were not valuated in financial terms). Only 12.4% of the share hold by Brazilian companies belongs to capital and technology intensive sectors, such as production of seeds (2.4%), fertilizers (4.8%), pesticides (0.6%), machinery (0.3%) and agro-industry (4.4%). However, even with the oligopoly of multinationals along the soybean market chain, recent business growth offers opportunities for national companies. The future of the Brazilian agribusiness relies on increasing vertical integration of national capital along the market chain, adding to the current narrow view that promotes only the horizontal expansion into new agricultural frontiers.

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