December 29, 2015

Northern Arc of Ports in Brazil Increase Grain Exports by 50%

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

The "Northern Arc" of ports in Brazil increased their exports of soybeans and corn by 50% in 2015. According to Brazilian Ministry of Agriculture, from January through November, these northern ports exported 18.2 million tons of grain compared to 12.0 million tons during the same period last year. In 2016, the Ministry expects the northern ports to export 25.5 million tons of grain.

The "Northern Arc" of ports in Brazil consist of Itacoatiara, Santarem, and Barcarena on the Amazon River and Sao Luis, Salvador and Ilheus on Brazil's northern Atlantic Coast. All of these ports are either currently being constructed or under expansion to accommodate the increasing grain production in central Brazil. After a 50% increase this year, these same ports are expected to increase their exports again next year by 40%.

Shipping grain out of the northern ports is expected to save approximately US$ 50 per ton in transportation costs compared to shipping the grain 2,000 kilometers from central Brazil to the country's southern ports. Eventually, it is estimated that most of the grain produced north of 16 degrees South Latitude will be exported out of the northern ports. The movement of grain north in Brazil will relieve some of the chronic congestion at Brazil's southern ports.

This information was reported in Investimentos e Noticias and reprinted in Agronegocio and Notices Agricolas.