Fed Cattle Marketing in the South-Eastern of Mato Grosso (Brazil): An Analysis of Beef Producers' Profile and Transactions Coordination

Abstract

The research aims to relate Mato Grosso’s south-eastern beef producers to cattle marketing arrangements. The sample was based on interviews with fifty-nine cattle producers that live in Rondonopolis (MT). It ranked ranchers in three categories: (N1) producers that only sell animals for cash and/or for installment (thirty days), (N2) producers that do (N1), but also operate through NPR–Notas Promissorias Rurais and/or CPR–Cedulas de Produto Rural, and (N3) producers that do (N2) and also enroll on forward contracts and/or futures contracts. Based on the analysis of the data, the study estimated an Ordered Logit Model in which were found the following relevant variables: Property area, SISBOV/ERAS certification, crossbreeding, and beef exports. In synthesis, the engagement on more demanding marketing arrangements (N3) and (N2) has positive relationship with the size of the land area, the use of cross-breeding on the cattle, and to beef exports. On the other hand, it was found that SISBOV/ERAS certification has an opposite effect. The hypothesis is that to have that certification enable producers to increase price arbitrage among packers in cash or installment transactions.