Brazil grain storage deficit stands at 118.5 million tonnes

Paulo Bertolini, the president of the Grain Storage Equipment Industry Chamber (CSEAG) of the Brazilian Association of Machinery and Equipment Industry (Abimaq), emphasized on Tuesday (4) that the projected storage deficit for the 2022/23 grain harvest in Brazil is expected to reach 118.5 million tonnes.

Bertolini commented, “The static storage capacity for grains is 194 million tons, compared to a projected production of 312.5 million tons of grains in Brazil.”

He further explained that the storage capacity in Brazil increases by 4.8 million tonnes each year, which is significantly lower than the growth observed in grain production, which increases by approximately 9.4 million tonnes.

This season, the storage deficit will be experienced in all regions of the country due to the higher-than-expected growth in the Brazilian grain harvest. Bertolini noted that only 15% of warehouses in Brazil are located within farms, while the remaining 85% are in urban and industrial areas. This often poses challenges in storing the production promptly after harvesting.

Regarding storage resources, Abimaq’s calculations indicate that an annual investment volume of at least R$ 15 billion should be allocated to keep up with the growth of agriculture. Bertolini commented, “The availability of resources through the federal government’s Crop Plan 2023/24, totaling BRL 6.5 billion, is positive. However, in practice, the excessive bureaucracy makes it difficult for producers to access these resources for making investments.”

Fonte: Canal Rural

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