The role of the leading exporters in the global soybean trade

Abstract

This paper examines the global soybean market in a holistic way, analyses the land use and other historical determinants of soybean exports, such as labour and capital endowments, soybean productivity, international prices and demand conditions through an empirical model. In addition, it pays particular attention to the role of leading exporters in the export changes and the nature of the connections between them in an interrelated system. The results suggest that the productivity per hectare and the land used to harvest soybeans are the main factors explaining soybean exports in a global context. The analysis also reveals that Brazil, the current market leader, positively influences the other exporters. On the contrary, minor exporters such as Ukraine, Paraguay, or Canada present competitive relationships with the major exporters. The nature of the relationships between the exporters and the pressure on natural resources highlight the importance of government involvement in developing joint strategies that ensure the growth of this sector and the achievement of United Nations Sustainable Development Goals.