Abstract
This work analyzed the Brazilian cellulose industry concentration level between 1998 and 2007, focusing on the sector's main performance indicators. The necessary data was collected from BRACELPA's Statistical Reports during the same period. The concentration level was determined according to the following indexes: Concentration Ratio (CR); Herfindahl-Hirschman Index (HHI); Theil's Entropy Index (E); and the Gini Coefficient (G). The primary conclusions were that the CR(4), CR(8), HHI, and Theil's indexes presented high figures in spite of occasional fluctuations. The inequality of the industry, as measured by the Gini coefficient, was considered high, confirming the initial hypothesis of the work.
Highlights
Industry concentration is one of the most important components in business competitiveness
The necessary data for measuring the Brazilian cellulose industry concentration was collected from the Brazilian Pulp and Paper Association’s (BRACELPA) Statistical Reports from 1999 to 2008
- results measured by any of the indexes show that the Brazilian cellulose industry is highly concentrated
Summary
Industry concentration is one of the most important components in business competitiveness. Brazil is the world’s leading producer of white cellulose fibers (short) and this product contributes significantly to Brazilian exports, reaching US$ 2.79 bi in 2008 (ASSOCIAÇÃO BRASILEIRA DE CELULOSE E PAPEL - BRACELPA, 2009 – Brazilian Pulp & Paper Association). The cellulose industry is capital intensive, requiring estimated investments of approximately US$ 1000.00 to 1500.00 to produce one ton of the product per year. The production of this commodity is marked by its inherent economy of scale, when one considers that in order for a cellulose plant to be economically feasible it should produce a minimum of 800.000 t/y (REZENDE et al, 2002)
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