Structure of the soybean value chain and price transmission to the brazilian retail market

Abstract

This work aims to analyze the flow of transactions in the soybean value chain, identifying all steps from the purchase of inputs, followed by agricultural production, storage, processing, industrial uses, consumption in human and animal feed, as well the availability of products that use soybean and its by-products to the wholesale and retail markets. Then, using applied time series models, the direction and intensity of transmission of shocks in soybean prices on prices to the retail market of products that use the oilseeds by-products as input. The products considered in the analysis were chicken meat, pork meat, beef, eggs, fish, soybean oil, margarine and biodiesel. Data from January 2000 to December 2018 are used. The results indicated that shocks in soybean prices positively influence and, more intensely, soybean oil prices in the retail market, followed by impacts on pork meat and chicken meat prices. The impacts on retail prices of diesel, fish, eggs, margarine were less representative but were also in the same direction as the shocks of soybean.