News

Agribusiness drives the Brazilian economy but does not have enough warehouses to store the harvest

Brazil
Innovation & Technology
Market & Price Trends
Published Dec 2, 2023

Tridge summary

Brazil's agribusiness, which is vital to the economy, is facing storage issues due to a deficit of 115 million tons. Only 15% of Brazilian farms have silos, leading 73% of farmers to consider building new warehouses. However, a lack of credit, high interest rates, and bureaucratic loan requirements prevent the construction of grain storage facilities, hindering farmers' ability to store and sell their products at their chosen time and price.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

It is the flagship of the Brazilian economy, but the agribusiness continues to face a storage problem because Brazil has a deficit of 115 million tons. According to a recent report by the Confederation of Agriculture and Livestock of Brazil (CNA), only around 15% of Brazilian farms have silos to store their production. About 73% of farmers surveyed said they were considering building new warehouses, but a lack of credit and high interest rates were prohibitive. The government has attempted to encourage the construction of grain storage facilities by offering low-interest loans, but with little success. Farmers complain about the bureaucracy and environmental requirements necessary to obtain loans. Last June, Lula had launched a workhorse of his first two terms, the so-called “New Safra Plan”, which replaced the Renova Agro of the previous Bolsonaro government. Despite the fact that the new plan foresees a 27% increase in public financing, up to a total value of 364.2 billion ...
Source: Infobae
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