Brazil to Streamline Argentine Wheat Imports Eyeing Reduced Costs for Local Mills

Brazil’s Ministry of Agriculture and Livestock (Mapa) announced Thursday, the 24th, plans to streamline wheat imports from Argentina, Brazil’s primary supplier of the grain. The announcement was made at the 31st International Wheat Industry Congress.

Starting December 1, 2024, 90% of wheat imports from Argentina will be allowed to go directly to Brazilian mills for processing, bypassing the requirement for customs-bonded storage, according to Allan Alvarenga, Mapa’s Secretary of Agricultural Defense. “Our goal is to simplify the process without compromising national safety,” Alvarenga stated.

Currently, imported wheat undergoes storage in bonded silos for pest inspection and analysis, with customs duties applied after a verification process that can take up to 48 business hours. Under the new policy, this timeframe will be reduced to just six hours. Only 10% of incoming shipments will still be held for pest inspection, speeding up wheat’s entry into the Brazilian market and ensuring a quicker supply chain for milling industries.

This measure responds to requests from the Brazilian Wheat Industry Association (Abitrigo) and the São Paulo State Wheat Industry Union (Sindustrigo), which represent the Brazilian wheat sector.

Last year, a pilot program was launched at the Port of Santos, Brazil’s main entry point for Argentine wheat. According to Abitrigo, the Port of Santos handles approximately 1.2 million tonnes of wheat annually, largely from Mercosur suppliers.

Eduardo Assêncio, Abitrigo’s general superintendent, called the initiative a major step forward, especially for government bodies like Mapa and the Ministry of Finance, which collaborated to simplify Argentine wheat imports—an established practice in Brazil for 60 years.

“It’s been a joint effort that will cut losses and improve import processes for those who need to produce,” Assêncio told Exame. He also noted that Mapa is considering expanding this streamlined process to other Mercosur nations, including Uruguay and Paraguay, and potentially establishing partnerships with the United States and Canada.

Below is an interactive chart showing the volume of wheat imports registered at Brazilian ports between January 2021 and August 2024. The data comes from Datamar’s DataLiner.

Wheat imports into Brazilian Ports | Jan 2021-Aug 2024 | WTMT

Source: DataLiner (click here to request a demo)

Argentina’s 2024/25 Wheat Harvest

Argentina is projected to produce 21 million tonnes of wheat for the 2024/25 season, with the Rosario Board of Trade (BCR) estimating 6.94 million hectares planted—a 1.4 million hectare increase over the previous season.

According to Jonatan Pinheiro, an analyst at StoneX, Argentina’s strong harvest forecast could put downward pressure on wheat prices, potentially lowering bread prices. “We anticipate harvest pressure, which may prompt the market to ease a bit,” he said, noting this environment is favorable for industry, supporting purchasing and domestic price stability.

Last year, Argentina exported 2.26 million tonnes of wheat to Brazil, though drought-related crop losses reduced its market share. Projections show Argentina’s 2023/24 harvest fell to just over 15 million tonnes due to adverse weather conditions.

Source: Exame
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