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Castor beans production cost structure: case study in the region of Irecê-BA

Full text
Author(s):
Jerônimo Alves dos Santos
Total Authors: 1
Document type: Master's Dissertation
Press: Piracicaba.
Institution: Universidade de São Paulo (USP). Escola Superior de Agricultura Luiz de Queiroz (ESALA/BC)
Defense date:
Examining board members:
Ricardo Shirota; Joaquim Bento de Souza Ferreira Filho; Daniel Yokoyama Sonoda
Advisor: Ricardo Shirota
Abstract

The Biodiesel Program, established by the Brazilian Federal Government, has several objectives: energy matrix diversification; reduce the dependence on non-renewable energy; and, reduce the environmental impacts resulting from fossil fuels consumption. An important aspect of this Program is the potential to improve the family farms income, helping to reduce social inequality. This research analyzes the cost structure of castor bean production in the region of Irecê-BA, using the Neoclassical Theory of Production to estimate a Translog cost function. This function is used to derive the average cost curve and several forms of elasticities. In the region covered by this study, castor bean production is heavily dependent on labor and is not technologically advanced. In comparison, the literature shows that soybean is much more intensive in capital, uses advanced technology and its production chain is much better organized. The scale economy indices estimated for castor bean are very significant and the average cost is declining over the whole sample interval. The cost comparison shows that castor bean oil has a slightly smaller average cost (-7%) than soybean oil. On the other hand, the significant scale economy found in this study indicates that the objective of improving the family farm income, through the biodiesel program, will only be possible through the governments support (compensation for the cost differential between the smaller and larger farms) or through the expansion of production scale above the levels observed in the sample. (AU)

FAPESP's process: 07/02174-5 - Biofuel and family farm income
Grantee:Jeronimo Alves dos Santos
Support Opportunities: Scholarships in Brazil - Master