High Crop Production to Challenge Brazil’s Infrastructure Again

High Crop Production to Challenge Brazil’s Infrastructure Again

Brazil is expected to harvest 91 million tons of soybeans for the 2013/14 crop year as compared to 81 million tons in 2012/13.  However, 2013 saw falling commodity prices and because of slow domestic economic growth and high inflation revenue growth will have to come from increasing export volumes.  Since the beginning of 2013 the cost of diesel has increased three times with the last increase of 8% in November 2013.  Combined with the logistical bottlenecks the country is still trying to address, the long distances from field to port, and the high cost of fuel, expanding export volumes will remain a challenge for the country.

 

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