Brazil is the third largest cotton exporter after the United States and India. Cotton production in Brazil 

expanded from 2 million bales in the late 1990s to about 9.3 million bales in 2011. In 2007, Brazil began a 

comprehensive logistical investment plan to increase competitiveness in the world agricultural market. To 

increase transportation efficiencies, the Brazilian Government wants to reduce export route distances and port 

congestion by shifting exports from the southern ports to the north and northeast port regions. Brazilian 

cotton export routes originate in three major producing States: Mato Grosso (MT), Bahia (BA), and Goiás 

(GO). The southern ports of Santos and Paranaguá are the main gateways to Asia, accounting for 91 percent 

of Brazil’s cotton shipments. The northeast port of Salvador, BA, represents about 2 percent of total Brazilian 

exports. Average distances from a farm in Mato Grosso to Santos and Paranaguá are 1,100 and 1,240 miles, 

respectively. Truck haul average distances from Goiás to Santos and Paranaguá are 640 and 880 miles, 

respectively. Salvador is located about 530 miles from western Bahia production regions. Bahia’s cotton 

exporters prefer to ship from the port of Santos where the average distance is 1,046 miles because there are no 

direct shipments from Salvador 

to Asia, resulting in higher ocean 

freight rates. 

Texas AgriLife Research 

scientists estimated the impact 

of Brazil improvements in 

transportation infrastructure 

on cotton production, prices, 

and exports. Transportation 

costs for different regions within 

Brazil were estimated to reflect 

movements from mill to port. 

An origin-destination matrix 

of the Brazilian cotton industry 

that tracks cotton flows within 

the country was developed and 

validated.

Findings indicate that a 2- to 

3-percent transportation cost 

reduction would not have a 

significant impact on the world 

cotton trade. However, the 

United States may benefit slightly 

This paper is a summary of:

Rafael de Farias Costa, C. Parr Rosson, III, and Flynn J. Adcock, Transportation Infrastructure in Brazil: Impacts 

and Implications for Global Cotton Trade, Texas A&M, CNAS 2012-0. May 2012. Web. <http://cnas.tamu.edu/

Publications/Brazil Cotton Transportation Report June 2012.pdf>

Brazil main cotton export routes

The Potential Impact of Brazil’s Transportation 

Efficiencies on World Cotton Trade

Written by Delmy L. Salin, Agricultural Marketing Service

United States 

Department of 

Agriculture
from a 2-percent cost reduction, increasing exports by 640 bales, raising prices 2 cents a bale, and growing 

revenue by $457,900. If transportation costs drop by 10 percent, Brazilian exports could increase by 64,830 

bales, raising prices by $3.61 per bale and increasing revenue by $27.8 million. India and the United States 

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. 

Infrastructural improvements could divert Brazilian cotton exports to Asia from Santos to Salvador. As a result 

of port facility improvements and a shorter distance to Asia, Bahia shippers could gain from a 10-percent 

reduction in transportation cost by shipping directly from Salvador to Asia. Bahia, the second largest cotton 

exporter after Mato Grosso, could become the top Brazilian cotton exporter, accounting for almost half of 

Brazil’s total exports. 

Recommended citation:

Salin, Delmy. The Potential Impact of Brazil Transportation Efficiencies on World Cotton Trade. U.S. Dept. of 

Agriculture, Agricultural Marketing Service, November 2012. Web <http://dx.doi.org/10.9752/TS061.1-2013>

USDA is an equal opportunity provider and employer.

January 2013

Estimated impact of a 10-percent Brazil transportation cost 

reduction on world cotton export revenues

$27.8

-$5.7

-$0.5

-$3.2

-$1.5 -$1.3

-$3.4

$12.2

-$10.0

-$5.0

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

Million Dollars