Economic and accounting evaluation of rice milled production chains in Rio Grande do Sul (Brazil) and Uruguay with application of the Policy Analysis Matrix

Abstract

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.

Feedstock diversification for biodiesel production in Brazil: Using the Policy Analysis Matrix (PAM) to evaluate the impact of the PNPB and the economic competitiveness of alternative oilseeds

“…The methodological procedures and criteria adopted in this study are in accordance with recent studies that have used the PAM methodology, such as the set of studies presented by Torres et al (2013), Souza (2014) and Souza et al (2017). The decision to analyze only one farmer and one processor in the evaluation of the three chains is justified by the prior use of this practice when using PAM in international studies (Lopes et al, 2012).…”

“…The PAM was used by Ugochukwu and Ezedinma (2011) to assess the impacts of intensifying rice production systems in Southeastern Nigeria. Souza et al (2017) combined primary data from representative establishments and secondary data to make economic and accounting evaluation of the rice production chains in Rio Grande do Sul (Brazil) and Uruguay. FAO (2007) also recommends the PAM approach to assess the effect of agricultural policies and the competitiveness of agricultural systems worldwide.…”

Change in land use and economic dynamics of the Ibirapuitã River Environmental Protection Area of the Brazilian Pampa biome

“…In this context, soybean cultivation resulted in a positive economic impact on GDP. However, rice cultivation promotes greater economic dynamics due to the financial circulation of local processing and transformation (Souza et al, 2017). Thus, when soybean expands over the area planted with rice, the GDP tends to decrease in the territory of the EPA Territory However, farmers are not only influenced by economic and productive factors but also by non-economic factors, such as habits and patterns of behavior that shape the decisions of individuals (Silva & Viana, 2020).…”

“…In this perspective, the greater the search for the preservation of the Pampa biome, represented by the search to strengthen the sustainability, cooperation, and social responsibility of rural organizations, the smaller the expansion of soybean cultivation in these organizations (Silva & Viana, 2020). This scenario led to a restructuring of the local productive space, previously dedicated almost exclusively to beef cattle farming, changing the economic aspects of the region (Kuplich et al, 2018;Viana et al, 2017;Souza et al, 2017;Miguel et al, 2017).…”

Produtividade, demanda e gasto com arrendamentos na orizicultura gaúcha

“…O poder de mercado dos beneficiadores e das grandes cadeias de varejo causam perdas de margens aos agricultores, reduzindo, assim, sua capacidade de pagamento [7] . A heterogeneidade tributária com os parceiros do Mercosul, por sua vez, também leva à perda de competitividade da produção nacional [8], [9] .…”