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The deficit is concentrated in the states of the Central-West Region.
The 2022/23 Brazilian harvest will have a big problem ahead: a record storage deficit of more than 100 million tons, according to AgWeb Farm Journal. The situation becomes even more delicate due to the forecast of a record harvest of 313 million tons of soybeans, corn, cotton, rice and wheat.
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According to the AgWeb Farm Journal article, only 15% of Brazilian farms have warehouses or silos. To get an idea of the size of the problem in Brazil, just compare it with its main competitor in the global agricultural market: In the United States, 54% of properties have storage.
Twenty-two years ago, in 2010, Brazil's storage capacity reached 90% of total grain production. However, the deficit increased significantly in the last decade due to the expansion of Brazilian agricultural production without due monitoring of the construction of silos. This disparity caused the current situation: only 67% of what Brazilians harvest can be stored.
According to AgWeb Farm Journal, the grain storage deficit in Brazil is concentrated in the states of the Central-West Region: Mato Grosso, Goiás and Mato Grosso do Sul. These states account for almost half of national grain production – and not by chance were those that experienced the greatest growth in production in recent years.
Joana Colussi, postdoctoral research associate at the University of Illinois, states that “the growth in storage capacity since 2010 has not been proportional to the increase in agricultural production over the same period. Although there is public and private credit for the construction of warehouses, Brazilian producers still need to be convinced about the positive return on this type of investment. This situation could represent a risk for the future competitiveness of Brazilian agriculture.”
Source: Leonardo Gottems | agrolink
