Brazil needs $148 bln to close grain storage gap

Brazil requires around 148 billion reais in investment to address a grain storage deficit estimated at 135 million tons. This was reported by Kepler Weber, the largest company in the sector in Latin America, highlighting that rapid growth in grain production has significantly outpaced the expansion of storage infrastructure.

According to CEO Bernardo Nogueira, the country currently has about 19,000 storage units and builds between 1,500 and 2,000 annually. However, an additional 5,000 to 7,000 facilities are needed to eliminate the shortfall—effectively requiring five years’ worth of expansion to be completed in just one year.

Estimates from consultancy Cogo suggest Brazil’s 2025/26 grain harvest could reach 357 million tons, while existing static storage capacity stands at only about 223 million tons. As a result, a significant portion of the crop is either stored in open-air conditions or sold immediately, limiting price arbitrage opportunities and increasing logistics costs during peak export periods.

Another key challenge is the low level of on-farm storage. According to data from CONAB, only 16% of storage capacity is located on farms, compared to 65% in the United States and about 40% in Argentina. This increases transportation costs, as grain must be moved to elevators, traders, and cooperatives where most storage capacity is concentrated.

Experts note that grain production in Brazil has been growing faster than storage capacity—by about 4.4% annually versus 2.4% for storage expansion. While the situation may improve over time with further investment and farm development, the storage deficit remains a major bottleneck for the country’s agricultural sector.

Tags: Brazil, grain storage, silos