Record sale of silo-bag helps alleviate the storage deficit in Brazil

Published Aug 23, 2023

Tridge summary

A recent survey conducted by the National Confederation of Agriculture in Brazil found that 61% of rural producers do not have grain storage infrastructure. This lack of storage capacity leads to economic losses and compromises the quality of the grains. However, the company Silox, a subsidiary of the Nortène Group, has had success in selling silo-bags as an alternative storage solution, reaching 50,000 units sold and generating revenues of around R$ 100 million.

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Original content

An unprecedented survey carried out by the National Confederation of Agriculture (CNA), through Esalq-Log (USP), reveals that 61% of rural producers surveyed in all regions of Brazil do not have grain storage infrastructure. The data are part of the broad study “Diagnosis of Agricultural Storage in Brazil” on one of the main primary logistics activities, fundamental for the competitiveness of the Brazilian agro. The study also shows that the average economic gain of 40.8% of producers who have storage capacity was, in the last three harvests, between 6% and 20%, compared to the average price at harvest time. This is because the volumes of the soybean crop and the second corn crop tend to have an economic benefit in a late trading window, as a result of the dynamics of price adjustments. Rose Branco, commercial manager of Silox, the Nortène Group's brand, leader in the supply of silo-bags in the Brazilian market, also points out that the loss of grain quality is another problem ...

Source: Portal Do Agronegocio