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Brazil faces challenges in storing agricultural production. Currently, there is a deficit of around 115 million tons in storage capacity, according to an estimate by the Brazilian Association of Machinery and Equipment Industry (Abimaq), which could cause a lot of damage to producers. To get an idea of the deficit, just compare Brazil with other countries. According to data from the National Supply Company (Conab), on American, Canadian and Argentine farms, producers have an installed storage capacity of around 65%, 85% and 40%, respectively. Meanwhile, in Brazil, the index is around just 14%.
According to data released by FF Seguros, the lack of adequate structure to store grains and other agricultural products can result in significant losses related to inadequate packaging, with damage caused by factors such as humidity, inadequate temperature and incidence of microorganisms.
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The insurer also highlights that even those who invest in infrastructure and manage to store their production correctly also face risks. The occurrence of bad weather, such as excessive rain, windstorms and lightning strikes, can damage the structure of silos and warehouses, which makes taking out insurance an essential measure to protect assets. “The silo or warehouse represents the 'safe' of the producer's money. Everything he produced depends on it. Therefore, it is important to take out insurance to maintain the stability and integrity of this 'safe' that is the storage improvement”, says Fabio Damasceno, agribusiness director at FF Seguros.
Source: Aline Merladete | agrolink
