An application of the spatial equilibrium model to soybean production in tocantins and neighboring states in Brazil

Abstract

In the production chain of soybeans in Brazil a sizable part of the corresponding cost structure is the result of logistics costs. Given the location of its production sites, distant from the ocean, the optimization of the transportation costs is essential for preserving competitiveness. Using nonlinear programming, this study proposes a spatial multimodal and temporal equilibrium model. The applicability of the model is tested with a case study regarding the exports of the soybeans produced in three states in the northern part of the Brazilian cerrado region. In the state of Tocantins, the effects of infrastructure investments in the competitiveness of the production are described through four proposed scenarios, while the basic scenario compares the three states. The data are treated using the GAMS/MINOS program. The study asserts that soybean production will be more competitive if warehousing facilities are used extensively and when the project hydroway becomes operational.Keywords: logistics; soybeans; warehousing; nonlinear programming. ResumoNa cadeia de produção da soja no Brasil, parte substancial da estrutura correspondente dos custos é resultado dos custos logísticos. Dada a localização das áreas produtivas, distante do oceano, a otimização dos custos de transporte é essencial para garantir a competitividade. Usando programação não-linear, este estudo propõe um modelo de equilíbrio espacial temporal e multimodal. A aplicabilidade do modelo proposto é testada com um estudo de caso referente às exportações de soja produzida em três estados na parte norte do cerrado brasileiro. No estado de Tocantins, o efeito na competitividade de investimentos na infraestrutura de transporte estão descritos por meio de quatro cenários, enquanto que os três estados são comparados pelo cenário básico. Os dados são tratados usando o programa GAMS/MINOS. O estudo assegura que a produção de soja nesses estados será mais competitiva se armazéns forem usados mais extensamente e quando o projeto hidroviário tornar-se operacional.Palavras-chave: logística; soja; armazenamento; programação não-linear.

Food security and multicommodity agricultural international trade: Quantifying optimal consumer subsidies for nutritional needs

“…For example, as summarized by Nagurney et al (2014), spatial price equilibrium models have been applied in the agricultural sector by Thompson (1989); specifically, to eggs by Judge (1956), to potatoes by Howard (1984), to beef by Sohn (1970), and to cereal grains by Ruijs et al (2001) and Nagurney et al (2023). Spatial price equilibrium models have also been applied to the important agricultural commodity of soybeans by Barraza De La Cruz et al (2010) and to dairy by Bishop et al (1994) and by . Spatial equilibrium models have also been applied to energy markets.…”

“…Spatial price equilibrium models have also been applied to the important agricultural commodity of soybeans by Barraza De La Cruz et al. (2010) and to dairy by Bishop et al. (1994) and by Nagurney et al.…”

Spatial price equilibrium networks with flow-dependent arc multipliers

“…Furthermore, the model therein assumed, in contrast to the model in this paper, that the arc multipliers are in the range (0, 1] and, hence, only possible losses, and not gains, were considered. The spatial price equilibrium framework, as noted by [ 31 ], is relevant to many agricultural product industries (see [ 2 , 16 , 18 , 40 , 44 , 47 ]) as well as to mineral and energy ones (see [ 21 ]). Furthermore, it has been utilized also in financial applications (see [ 23 , 27 , 48 ]).…”