The Use of Constant Market Share (CMS) Model to Assess Brazil Nut Market Competitiveness

Abstract

This paper aims to evaluate the variation of market share explained by structural and competitive forces using the Constant Market Share (CMS) model. Assuming that a country should maintain its market share to keep competitive, the equation used in the model analyzes the export basket composition, exports destination, growth or shrinkage of the world market and the competitiveness effect. The overall loss of the Brazilian market share in a time series from 1998-2012 is given due to the barriers of potential European markets and reduction of the market growth of the product with shell. In a different way, the increase in exports of shelled nuts to markets with higher growth rates contributed to a favorable outlook for Bolivian and Peruvian markets, which had a market share gain on the period.