Brazil needs about US$29.6B to fix grain storage shortfall
Fast growth in grain output has outpaced storage, raising costs and forcing early sales.
BRAZIL – Brazil needs about 148 billion reais (US$29.6 billion) to close a large gap in grain storage, as output continues to rise faster than infrastructure.
Data from Kepler Weber, the largest company in this sector in Latin America, shows that the country faces a storage deficit of about 135 million tons. Grain production has grown at a steady pace, but storage has not kept up.
CEO Bernardo Nogueira said Brazil has around 19,000 storage units and builds between 1,500 and 2,000 new ones each year. However, the country still needs an extra 5,000 to 7,000 units to meet demand. This means Brazil would need to complete about five years of work within a single year to close the gap.
Estimates from consultancy Cogo show that Brazil’s 2025 to 2026 grain harvest could reach 357 million tons. Current storage capacity stands at about 223 million tons. This gap forces farmers and traders to store grain in open spaces or sell it right after harvest. Both options cut into profits. Early sales reduce the chance to wait for better prices, while poor storage raises the risk of losses.
The shortfall also adds pressure on logistics. During peak export periods, limited storage pushes more grain into the transport system at once, which raises costs and slows movement.
On farm storage remains low. Data from CONAB shows that only 16 percent of storage sits on farms. In comparison, farms in the United States hold about 65 percent of storage, while Argentina holds around 40 percent. This gap forces farmers in Brazil to move grain over long distances to reach storage sites owned by traders or cooperatives, which adds to transport costs.
Grain production in Brazil grows at about 4.4 percent each year, while storage expands at about 2.4 percent. This gap continues to widen and keeps pressure on the sector.
Industry players expect that more investment and farm growth will help over time, but the current shortfall remains a key issue for the country’s agriculture sector.
At the same time, market tools such as AgriSupp continue to support decision making by offering daily data, reports, and market insights for grains and oilseeds.
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