Brazil has export infrastructure problems

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

Brazil is committed to growth, and there is every reason to believe it will move aggressively to address the logistical issues that hinder exports--an example that the United States, with its own infrastructure deficits, might well take to heart.
The South American giant's growing pains are well known. According to a U.S. Grains Council consultant, Brazil will harvest a record corn and soybean crop this spring. About 38.5 million metric tons of beans will be exported. Rain delays, however, have slowed both the harvest and the movement to port, as well as loading.

About 70 percent of Brazil's soybean production moves by truck, and road conditions are poor. The trip from Cuiaba to Rondonopolis, a distance of 125 miles on a federal highway takes 8 hours. On the country roads, the situation is even worse.

Labor regulations--a sensitive issue in the United States as well--also impede shipping. A new law requires that truck drivers rest 30 minutes every four hours, with a minimum of 11 hours a night rest. This is causing delays and early morning congestion at the ports. In addition, the Customs, Agriculture, Health, and Treasury personnel at the ports are only available for eight hours a day, with an hour for lunch--while ships idle in harbor, waiting to load.

The impact on the bottom line is dramatic. The cost of moving a metric ton of corn or soybeans from Mato Grosso to the Port of Paranagua, a distance of 1,435 miles, has increased 506 percent in the past year. During the same period, soybeans were up just over 20 percent--but three quarters of the increased price was absorbed by higher freight costs.

Brazil's export surge is dramatic, but there are bumps in the road. It is clear that the United States needs to act as aggressively as the Brazilians to modernize our own infrastructure to stay ahead in this race for an export edge.

Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...

Related Articles

Comments (0) Leave a comment 

e-Mail (required)


characters left

Demco 1400 Grain Cart

Demco offers a 1400 bushel grain cart to provide unmatched efficiency and operator convenience. In addition to the large 1400 ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form