by PressExperts predict a record harvest in Brazil
Brazil’s harvest to exceed storage capacity for the first time in 20 years
In Brazil, experts call the agricultural year 2022-2023 extremely successful. Local farmers expect a record soybean crop. The country’s harvest is projected to exceed total storage capacity. As the food supply and statistics agency Conab told Reuters, this will happen for the first time in 20 years. However, such a situation could lead to problems with the preservation of crops and logistics, which is already feared by experts.
Brazil is expected to harvest 189.5 million tons of soybeans in the summer of 2023, as well as such crops as corn and rice. At the same time, it is noted that the total storage capacity of the country is only 187.9 million tons.
This situation worries local experts. In 2023, Brazil may face worsening logistical problems. Moreover, it jeopardizes the government’s plan to rebuild the state’s stocks of rice, beans, and corn. The plan was designed to guarantee food security and livestock feed.
Conab warehouse manager Stelito dos Reis Neto fears that Brazil will once again face the old problem of a lack of warehouses. This could happen at the height of the soybean harvest. During 2023, he says, the problem could get even worse.
Conab accounts for 1 percent of the country’s total storage capacity. According to Reis Neto, in the first half of 2022, Brazil had virtually no competitors in export markets. During this period, the country was actively exporting most of its soybean production, which freed up storage capacity somewhat. Logistical problems worsened during the second half of the year, however, as competition in export markets increased. The arrival of a new soybean crop in the U.S. also contributed to this.
Kepler Weber silo manufacturer CFO Paulo Polezi believes this situation demonstrates the urgent need to make investments in building storage facilities in Brazil. According to a study cited by Polezi, a large investment of $1.96 billion is needed to solve the storage shortage.
The problem, Polezi noted, is that due to the lack of additional supplies in Brazil, very large shipments of crops have to be transported at the same time. This, in turn, contributes to higher transportation costs in the midst of the harvest season.
When the soybean harvest ends, Brazil begins planting corn. The country’s corn production is expected to increase by 12% in the winter of 2023. According to estimates by local farmers, corn production in 2023 will be 96 million tons.
Despite the expected problems, local experts hope that the Brazilian government will be able to help solve the situation.