Corn production goes up, but storage is a bottleneck – 05/17/2023 – Vaivém

Washed down with juice, ice cream, cake, popcorn, brigadeiro and other products, all made from corn, the first Abramilho Congress was held this Wednesday (17), in Brasília. The objective, however, was not a tasting, but rather to discuss the importance and the need for interaction throughout the cereal chain.

The most democratic crop in the countryside, corn already occupies 22 million hectares of plantation in the country, generating a gross value of R$ 150 billion per year, says Otavio Canesin, president of Abramilho (Brazilian Association of Corn Producers), organizer of the event.

For the president of the association, the cereal is the most democratic and socially-oriented crop in the country, since it is spread throughout the national territory and is sown by small, medium and large producers. Corn is present in at least 1.6 million farmers’ crops.

The focus of the meeting was the promotion and development of the entire chain, at a time when the sector is experiencing a series of difficulties. Production grows rapidly, but prices fall. The Brazilian product attracts the attention of importers, however, storage and transport logistics do not keep up with the evolution of production.

Brazil should assume world leadership in corn exports this year, a trend that could be maintained in the next, according to the USDA (United States Department of Agriculture).

Record volumes in soybean production, which should total 155 million tons in the year, and in corn, forecast at 126 million, bring more challenges for Brazilian logistics, mainly for storage.

China, hitherto absent from Brazil, becomes an important player in the Brazilian market. The import potential of the Chinese is great, reaching 23 million tons in the 2023/24 harvest.

Producer associations such as Abramilho and Aprosoja (Association of Soy and Corn Producers) highlight the need to expand storage capacity, especially on farms, which would give farmers more autonomy.

For Elisângela Pereira Lopes, coordinator of Strategic Affairs at CNA, the increase in production, followed by this opportunity for the country to place a larger volume of cereal on the foreign market, should raise the already existing bottleneck in the country due to lack of adequate infrastructure.

The pace of exports through the so-called Arco Norte increases. Last year, according to Thomé Guth, Conab’s Operational Logistics superintendent, at least 47% of the corn exported by Brazil left through ports in the North and Northeast.

Corn gained new uses in the country, going from human and animal food to energy generation. In the animal feed sector, Ricardo Santin, president of ABPA (Brazilian Association of Agricultural Production), says that the advancement of corn production is essential for protein production, which grows in all segments.

In the dispute between the use of corn for food and for the production of ethanol, Guilherme Nolasco, president of Unem (National Union of Corn Ethanol), highlights the Brazilian peculiarities.

According to him, culture promotes a circular economy. The cereal basically comes from the second harvest, it is going through a moment of increased productivity and part of what is used in ethanol goes back to feed the cattle. These, in turn, have a reduction in the fattening cycle, freeing up more pastures for grain production.

The need for clear information for the sector was highlighted at the congress, which would benefit all segments. Contrary to what happens in the United States, for example, Brazil does not have control over information on cereal exports. This leaves the industry without clarity on internal product availability.

_{The journalist traveled at the invitation of Abramilho}

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