Texas A&M AgriLife Research scientists estimated the impact of Brazil improvements in transportation infrastructure on cotton production, prices, and exports. In 2007, Brazil began a comprehensive logistical investment plan to increase competitiveness in the world agricultural market. Brazil is the third largest cotton exporter after the United States and India.
Findings indicate that if transportation costs drop by 10 percent, the United States and India might lose market share. U.S. losses could include 4,490 fewer bales exported at a price of $0.28 less per bale and lower cotton export revenues of $5.7 million. Brazilian exports could increase by 64,830 bales, raising prices by $3.61 per bale and increasing revenue by $27.8 million.
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