Rice is the basis of diet for almost half of the world population, and its culture is one of the strategic agroindustrial production chains in the agribusiness environment, in both economic and social levels. Thus, the comparative analysis between the production chains of rice milled in Rio Grande do Sul (RS), Brazil, and Uruguay was mainly motivated by the interest in knowing the differences in the business environment and public policies that impact the competitiveness of this chain in both study regions. Therefore, the objective of this study was to assess the economic efficiency, competitiveness, and effects of public policies of the rice production chain of milled rice in RS (Brazil) relative to Uruguay. The data collected in this study are from the 2011-2012 harvests and indicators were calculated by applying the concepts of the policy analysis matrix (PAM). Results showed that the chains in both study regions were competitive under the existing market and policy conditions, revealed comparative advantage, transferred a high load of resources to other sectors of the economy, and satisfactorily remuneration of the domestic production factors. However, the competitiveness and comparative advantage shown in this study were not due to the encouraging intervention policies, as both production systems pay high taxes.
Purpose
The purpose of this paper is to present an economic evaluation of Uruguay’s beef industry competitiveness to quantify the effects of public policies (taxes, subsidies, social charges) on the various links constituting the beef export chain and estimate the impact of transfers of resources between the beef industry and other sectors of the economy.
Design/methodology/approach
The Policy Analysis Matrix (PAM) techniques were employed to quantify the effects of public policies on the competitiveness of Uruguay’s beef industry. A series of PAM coefficients were calculated to assess the competitiveness of the beef export chain in 2010 and 2013 with comparison between the two years to make policy recommendations.
Findings
Beef sector returns captured by private agents decreased from 30 percent in 2010 to 10 percent in 2013. Competitiveness of the beef export chain deteriorated between 2010 and 2013 due primarily to higher prices paid for live cattle by the beef slaughtering, manufacturing, and packing sector. Uruguay’s beef industry transfers resources to the larger economy via social security payments and is penalized as a result of high capital costs.
Research limitations/implications
Although three different sources of resource transfers were identified, more effort is needed to improve the precision of estimations.
Originality/value
The competitiveness of export chains is critical to the economic and social wellbeing of small-economy countries. They must be efficient producing for the international markets at the time they constitute pillars of the whole economy.
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