Jun 25, 2026
Brazil's Grain Storage Capacity Cannot Keep Pace with Production
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
According to a survey conducted by IBGE, Brazil's static grain storage capacity at the beginning of 2026 stood at 210.5 million tons, which was up 3.6% from the prior year. Despite the increase, the available infrastructure is equivalent to 58.6% of Brazil's grain production in 2025, estimated at 359.4 million tons. Although Brazil does not need to store all of its grain production at the same time since the soybean and corn harvests occur at different times, the increase in storage has not kept pace with increases in production.
Over the past ten years, the growth in grain storage has advanced at an average annual rate of 4.0%, while national grain production has grown by 6.5% per year according to the consulting firm DATAGRO. This mismatch reduces the ability of producers to retain volumes of grain waiting for better market conditions. Approximately 15% of Brazil's grain storage is found on farm.
The federal government has tried to incentivize grain storage construction through the use of loans with subsidized interest rates. Even with government aid, producers and grain companies complain that high interest rates and environmental regulations make construction prohibitively expensive. The current prime interest rate in Brazil is 14.25%.