Brazil is Short on Bin Space As Grain Output Outpaces Storage Capacity
Brazil’s grain output dramatically outpaces storage capacity.
The 2022/23 crop season could post two records in Brazil. First, it could produce a record 313 million tons of soybeans, corn, cotton, rice and wheat. Second, that record production would cause a record storage deficit of more than 100 million tons.
“Storage capacity growth since 2010 has not been proportional to increases in crop production in the same period,” says Joana Colussi, postdoctoral research associate at the University of Illinois.
Only 15% of Brazilian farms have warehouses or silos. In 2021, Brazil’s storage capacity could only contain 67% of its total grain production. In 2010, the ratio was 90%.
The grain storage deficit in Brazil is concentrated in the central-west states (Mato Grosso, Goiás, and Mato Grosso do Sul), which account for almost half of the national grain production.
“Although public and private credit is available for building warehouses, Brazilian producers still need to be convinced about the positive return on this type of investment,” Colussi says. “This situation can represent a risk for future Brazilian agriculture competitiveness.”
Read also
Wheat in Southern Brazil Impacted by Dry Weather and Frosts
Oilseed Industry. Leaders and Strategies in the Times of a Great Change
Black Sea & Danube Region: Oilseed and Vegoil Markets Within Ongoing Transfor...
Serbia. The drought will cause extremely high losses for farmers this year
2023/24 Safrinha Corn in Brazil 91% Harvested
Write to us
Our manager will contact you soon