The agribusiness industry and the Brazilian soybean producers’ internationalization patterns

Abstract

The Brazilian soybean producers, seeking competitive advantage and success in their business, understand that the foreign market becomes an alternative to diversify their activities, to seek new sources of income and to reduce dependence on their domestic market. However, the Brazilian context of international trade includes tariff and non-tariff barriers, which may jeopardize any deal, just because a simple price of goods increases or the withdrawal of a closing deal. This study analyzes three soybean exporting companies in the northern region of Rio Grande do Sul, through a multiple case study, more specifically about the barriers encountered in their internationalization process. All three cases demonstrated a development path toward internationalization, in view of gaining more competitiveness. However, there is still a large intervention by intermediaries, such as trading companies and brokers, in the export of soybean from Rio Grande do Sul. Even though exports are predominant among the soybean producers, the results show elements of hurdling about technical, logistics, sanitary and phytosanitary matters and subsidies.