Jan 06, 2010
Lack Of Storage Space Could Be A Real Problem In Mato Grosso
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Last year, more than two million tons of corn had to be piled on the ground in Mato Grosso due to a lack of storage space. All the corn piled outside has been removed, but many of the silos in the state are still full of last year's corn crop. It is estimated that the state of Mato Grosso has a total storage capacity of 2.4 million tons and that about 12% of that storage space (280,000 tons) is still occupied by last year's corn crop.
The early soybean harvest has already begun in the state and it is expected to be a record soybean crop of over 18 million tons. For the last several months, producers and grain elevator operators have been urging the government to get serious about moving out the corn and it finally looks like Conab may take some action. According to the superintendent of Conab's Mato Grosso operations, Suzane Corra, everything is in place to start removing the 280,000 tons of corn from 30 different storage facilities starting within several weeks. The corn will be transported to other states such as Minas Gerais and Mato Grosso do Sul where government approved storage space is available. The entire removal process is expected to take approximately 40 days.
The lack of storage space in Mato Grosso is a symptom of the overall lack of storage in Brazil. The total grain production in Brazil continues to increase, but the amount of available storage space has not kept pace. Another complicating factor is the fact that the federal government has stricter requirements for the storage of federally owned grain. In order to store government owned grain, the facility needs to meet the requirements set by the government. Unfortunately, of the 2,156 storage facilities in Mato Grosso, only 391 meet those requirements.
In an effort to try to rectify the situation, Conab has initiated a nationwide program of certifying all the grain storage facilities in the country. Along with this process, the government is trying to tighten up the storage standards in order to cut down on storage and transportation losses. Some scientists have estimated that Brazil looses as much as 10% of its grain during storage and transportation.
Today Brazil has the capacity to store 130 million tons of grain. Eighty percent (104 million tons) is in bulk storage and 20% (26 million tons) is grain stored in 60-kilogram sacks. The traditional method of transporting grain in Brazil was in 60-kilogram sacks. Only after soybeans became the primary crop in Brazil did bulk storage become commonplace.