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Senior Contributor

Logistics still very worrying in Brazil

Brazil's inefficient infrastructure is still subject of worry for this year's crop. In the port of Santos, lines of trucks have been formed and truckers might take hours or even days to unload grains. According to a study from the University of São Paulo, the country would need to invest at least R$ 177 billion (nearly US$ 89 billion) on roads in order to have adequate infrastructure. Also, the country would need to start using railways and waterways.


Brazil has currently the most expensive cost of transportation in the world, says the National Association of Cereal Exporters. The price of soybean shipping is US$ 98, five times higher than in the US. It tends to be worse because of new law which restricts the number of working hours for drivers on the road. To avoid bigger delays, the country needs to hire nearly 50,000 new truck drivers.


Next week, the eyes will be on southern Brazil. It starts the soybean harvest in Rio Grande do Sul, the latest state to do it. The state will also be host of a major farm show, where banks are expected to lend over US$ 500 million for machinery purchases.

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