Bottlenecks in the brazilian cotton exports

Cotton production in Brazil – the world’s second largest exporter of cotton – could rise by 40% over the next decade, and brazilian cotton exports may more than double, according to Rabobank’s latest report.

However, logistics remains a bottleneck for the future growth of the country’s cotton exports.

In the report “Infrastructure bottlenecks repress Brazilian cotton expansion”, the bank says that 99% of Brazilian cotton exports are currently being handled by the Port of Santos, located 2000 kilometers from the main producing regions.

With export capacity almost depleted, Rabobank sees investing in new cotton export routes and developing farm infrastructure as critical to future growth.

The report’s author, Victor Ikeda, Rabobank’s senior grain and oilseed analyst in Brazil, says: “In order to achieve this production growth and export potential, investments need to take place primarily in the development of existing export capacity, ‘new’ export corridors, and ginning capacity.”

The following chart, based on DataLiner data, shows Brazilian cotton exports from January 2006 to April 2019:

Source of the graphic: DataLiner/Datamar

Source of the news: Rabobank

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