Grain production grows, but storage capacity does not increase at the same pace

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Today, Brazil can store a maximum of 201 million tons. As different grain harvests occur at different times of the year, producers are able to organize themselves so as not to lose production. Grain production increases, but storage capacity does not grow at the same pace Agriculture plays a fundamental role in the Brazilian economy. Grain production has been growing every year, but storage capacity is not increasing at the same pace. The demand for space has grown in recent years. Data from the National Supply Company show that Brazilian grain production more than doubled in 14 years: it jumped from 149 million tons in 2010 to 299 million now. But storage capacity has not kept pace. In the same period it grew 45%. Today, the country can store a maximum of 201 million tons. As different grain harvests occur at different times of the year, producers are able to organize themselves so as not to lose production. At this moment, producers in Mato Grosso do Sul are in the middle of the soybean harvest season. The expectation is that production will reach almost 14 million tons in the next three months, when the soybean season ends in the state. In parallel with the harvest, producers are increasing investments in storage. BNDES has a special line of credit for independent rural producers, willing to finance the construction of silos on their own farm. In 2022 the bank financed four projects; in 2023, there were 13. “There are lines that are automatic, which are operated through commercial banks. There is one, for example, which is BNDS rural credit. It is available to rural producers, to agribusiness, to make the types of investments they want. Both funding and fixed investments”, explains Mauro Mattoso, head of the Biofuels Department at BNDES. Cooperatives are also increasingly investing in increasing storage capacity. One is investing R$1.4 billion. “We have a schedule of how much our members are growing, what productivity is expected, and we have, let’s say, not reached the speed at which we are growing, but always trying to be there very close to the need”, says Gervasio Kamitani, CEO of the Administrative Council of Cooperativa Copasul. The project for a new complex is already ready. The works will begin in March and will generate around 2,000 direct and indirect jobs by the end of 2026. Operational supervisor Pedro Lopes de Aguiar is excited. He was hired to work as a supervisor at the construction site. “Today, seeing and having the opportunity to be part of such a large plant is very special for me, particularly. But not just because of the professional issue, I believe because of the issue that involves my duties”, he says. Small producers who need the cooperatives’ storage structure can count on increased capacity. “There are some companies in our region that cannot absorb everything. So, we end up having these huge queues. These companies need to invest more to be able to speed up the receipt of soybeans to reduce the queue for the truck driver so everyone can have a slightly more peaceful life at this time”, says rural producer Rodrigo Ferreira. READ ALSO Lack of warehouses worries grain producers See how storage silos work

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