World Grain - May 2017 - 58

FEATURE: INFRASTRUCTURE ISSUES HAMPER BRAZILIAN EXPORTS

tree, we have an expected area for expansion growth of around 9.7 million hectares, which is about the size of Portugal.
"This can be accomplished simply by
changing our practices of cattle farming
IURPOHVVIUHHURDPLQJWRPRUHFRQ¿QHment methods, primarily in the region
called Mapitoba."

Drawing on Conab and Ministry of
Agriculture data, the executives predicted
that Brazilian maize exports would total
34 million tonnes in 2016-17, up from 20
million tonnes in 2015-16, and could rise
a further 51.2% over the next 10 years.
Soybean exports were forecast to reach 57
million tonnes in 2016-17, but a 33.9% in-

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crease in production over the next 10 years
would enable a 42.1% increase in soybean
exports. For soybean meal, they forecast
that exports would remain steady at 15.5
million tonnes in 2016-17 but could rise
17.4% over the next decade.
The upshot of the predicted increases
would be a 34-million-tonne increase
in Brazilian grain and soybean exports
over the next 10 years. But, Ross and
Neto concluded, with many of the roads
from Brazil's agricultural heartlands
congested, and ports in dire need of investment to boost capacity and productivity, these gains would only be possible if major investment from state and
private sources was made in infrastructure and transport capacity, including
new barge and rail systems.
CONGESTION 2017
Ross said port congestion in southern
ports was increasing in March and early
April as the soybean harvest gathered
momentum ahead of its peak in April/
May. This was exacerbated by awful
conditions on highway BR-163, which
runs from soybean source areas in Mato
Grosso to northern ports via the Amazon
River. Earlier this year, it was almost impassable after heavy rains - drivers were
reporting that it was taking 14 days to
cover the 620-mile route. This prompted
trucks to be diverted to southern ports, a
re-routing that adds approximately 40%
onto the loaded costs of grains.
The combination of diversions and rain
saw truck freight rates soar over February
and March for those shipping from Mato
Grosso, while ports at Amazon ports fed
by BR-163 were operating below capacity due to a lack of soybeans leaving
shipping companies waiting to load with
substantial demurrage charges.
"We generally do experience some
delays during the grain season with
the biggest delays historically seen in
the Port of Paranaguá of up to 45 to 60
days," Ross said. "Vessel waiting times
in Brazil depend on a number of factors and as long as the transport routes
leading to the northern ports, namely
the BR-163, remain in a poor condition
May 2017 / World Grain / www.World-Grain.com

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World Grain - May 2017

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