Mucuripe Port emerges as Brazil’s leading wheat import hub amid record-breaking growth

The Port of Mucuripe (officially known as the Port of Fortaleza) ended the first half of 2024 with a record wheat import volume, marking the highest figure in five years. Between January and June this year, the port received 577,000 tonnes of wheat, a 7.5% increase compared to the same period last year when 537,000 tonnes were imported.

The data comes from the National Waterway Transportation Agency (Antaq) and the Comex Stat platform of the Ministry of Development, Industry, Commerce, and Services (MDIC). According to the Ceará State Dock Company (CDC), the port authority responsible for Mucuripe, the Port of Mucuripe has emerged as the largest wheat hub in the country since 2022.

Antaq’s historical data, which began in 2019, show steady growth in wheat imports, with inbound operations exceeding 500,000 tonnes at the port. In 2016, Mucuripe recorded the best six months for its wheat hub, with some 640,000 tonnes imported.

Wheat arrives in Fortaleza for processing at three of the country’s largest mills, located in the Cais do Porto neighborhood: Moinho Dias Branco, J. Macêdo—Moinho Dona Benta, and Grande Moinho Cearense. These mills produce wheat flour and bran, which are used as raw materials for pasta and biscuits.

How is the Wheat Imported to Mucuripe?

According to Antaq data, the wheat imported to Mucuripe mainly comes from South America. Argentina, with 41.4% of the share, and Uruguay, with 20.3%, are the first and third largest suppliers, respectively. Russia ranks second, accounting for 29.3% of the market.

To facilitate wheat imports, the three mills in Fortaleza have jointly operated a company dedicated exclusively to the import and distribution of wheat at the port, the Fortaleza Grain Terminal (Tergran), since 1996.

M. Dias Branco, J. Macêdo, and Grande Moinho Cearense are equal partners in Tergran, each holding a 33.3% stake. According to the company’s website, it has managed the storage at Warehouse A-2, which serves as a buffer for port activities, since 2000.

Business Operations

In 2021, Tergran leased the Solid Vegetable Bulk Terminal (officially known as MUC01) for R$1 million, expanding its operations and controlling both wheat terminals at the port. The lease agreement should extend for 25 years; it includes investments of R$50 million.

Despite the high volume of wheat arriving at Mucuripe from abroad, it is only the second most imported commodity at the terminal. According to Antaq, in the first half of 2024, the largest import was petroleum and derivatives (excluding crude oil), with 753,000 tonnes imported.

Impact on the Local Market

Economist Alex Araújo explains that both internal and external factors influence this increase in wheat imports. Floods in Rio Grande do Sul, given that state’s prominence in wheat production, may have played a role in the Brazilian market.

“This imported wheat is crucial for maintaining local industrial output, especially at a time when Brazil’s main domestic producer, Rio Grande do Sul, has been affected by floods that harmed its harvest. In the international market, this increase in imports signals Brazil’s growing dependence on international commodities to meet local demand, which could impact the trade balance for agricultural products,” Araújo explains.

With the Brazilian real weaker against the dollar, the price of wheat-derived products has risen, as shown by a survey conducted by Neogrid. In the August staple food basket, wheat flour saw the highest price increase, rising by 9.5%.

“Wheat is a commodity, meaning its price is set on the global market, and currency fluctuations—especially the recent rise in the dollar—directly impact import costs. Even with more wheat entering the country, the price of the raw material has risen due to the devaluation of the real against the dollar,” Araújo adds.

Wheat imports are expected to remain high until local production, particularly in Rio Grande do Sul, recovers, potentially in the 2025/26 harvest season. However, any additional increase in imports will depend on the evolution of domestic supply and international market conditions.

Araújo also points out that wheat is a staple food in Brazil, and its derivatives, such as bread, cakes, and pasta, are likely to continue driving wheat imports in the coming months.

“The imported wheat in Ceará is primarily processed into flour, pasta, and biscuits, industries dominated by large companies. In addition to being a key raw material for the food industry, wheat is used in the production of bread and other baked goods, which are essential items in the Brazilian staple food basket,” he says.

Collaboration Bolster Fortaleza’s Wheat Hub, Expert Says

Augusto Fernandes, CEO of JM Negócios Internacionais, a customs brokerage firm, notes that Mucuripe’s leadership in wheat imports is recent but has surpassed major players in the port sector, such as the Port of Santos, the largest in Latin America.

According to Fernandes, the consolidation of the port in Ceará’s capital, which has been involved in wheat milling since the first half of the 20th century, coupled with the Tergran partnership that unites the state’s three leading mills, has created a favorable environment.

“The joint venture between the three companies greatly benefits the organization, purchasing, and logistics of wheat imports. The stability of the dollar in the first half of the year is another important factor. All these efforts, which began in 2022, continued through 2023 and culminated in this year’s peak performance,” Fernandes explains.

Another factor contributing to Fortaleza becoming the leading wheat importer is its cost-effectiveness. According to Fernandes, among the three Brazilian ports with the potential to establish themselves as major wheat hubs, Mucuripe offers the best advantages.

“The Port of Maceió is also heavily involved in bulk wheat imports. The Port of Santos serves routes worldwide but at a very high cost. Ceará has stood out over the years due to its geographic position. The Port of Mucuripe now operates almost exclusively as a wheat terminal. All of this has improved logistics, processes, and customs clearance. This ongoing progress, combined with increased consumption, will allow wheat imports to continue growing,” concludes Augusto Fernandes, CEO of JM Negócios Internacionais.

Source: Diário do Nordeste

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