Brazil’s Northern Frontier To See Soy Output Boom

December 8, 2014

ADM states that Brazil’s northern region, consisting of the states Maranhao, Tocatins, Piaui, and Para, (Matopipa) will see soybean production growth of 19% per year between 2013 and 2017 compared to production growth of 4.5% for Mato Gosso, because of improved infrastructure and increased access to more local ports. Matopipa is a relatively small growing region compared to states such as Mato Grosso, however ADM is increasing its focus on the region as a way of raising output while easing its reliance on the country’s overstrained southern logistic network where growing areas can be 1,000 miles from port causing transportation costs to be upwards of 30% of the price of the soybeans. In contrast, transportation of crops in the north can be accomplished by barge. In 2012 ADM acquired an export terminal in Barcarena in Para with plans to increase capacity from 1.5 million tons to 6 million tons, has invested in inland terminals, and has built a sizeable fleet of vessels. To read further:

 

Read the article

 

To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service

 

Join the Global AgInvesting Community

Share your email to be notified about upcoming events, receive leading industry news and more.