The landscape in the Brazilian state of Mato Grosso is adorned in many places by large yellow mountains. This concerns grain maize that is stored in the open air by farmers. A mega corn harvest means that there are not enough storage options available. Exporting is difficult, partly due to a poor infrastructure.
"Arable farmers are forced to store their corn outside, in large heaps. This is because storage capacity is not available," Endrigo Dalcin told Bloomberg. Dalcin is chairman of the Aprosoja growers' organization in Mato Gross.
Half of storage is missing
Brazil is one of the most important corn producers, but the poor infrastructure greatly hinders exports. Earlier this year, the difficult, unpaved and muddy roads made it impossible to transport the corn. Due to a significant area expansion, the storage shortage has only increased. Mato Grosso state has only half the capacity that the UN recommends as safe, Aprosoja says.
Still good again
Because the corn is stored outdoors, it can rot due to rain and high humidity. The susceptibility to pests is also greater. The weather conditions are relatively favorable at the moment, but that will change in December. As a result, farmers have invested more in storage hoses, which also make it easier to store the corn outdoors. That is a small bright spot according to the organization.
Stores full of soy
Arable farmers in Mato Grosso will harvest 29,5 million tons of corn this year. That is an increase of 55% compared to last year. The government estimates the storage capacity at 33,5 million tons. So more than enough. The problem, however, is that many of these stores are still full of soy, of which record quantities have also been collected this year. By the end of July, 90% of the corn harvest had been harvested.
More problems
There are more problems that hinder exports. For example, an important transport route has been closed by demonstrators. They are protesting against a new tax on fuel. "When transport decreases, the storage problem becomes even greater," Dalcin thinks. "At least 5 million tons of corn must be exported every month, through December, to have enough space for the coming soy harvest."