Grain transportation in Brazil faces structural obstacles that limit the full development of agribusiness. Despite being one of the largest producers in the world, the country still faces storage and logistics challenges. 

Production is growing at a rapid pace (more than 10 million tons a year), but storage capacity is less than half that. The result? A significant portion of the harvest is exposed to the need for marketing, which reduces the possibility of maximizing profitability. 

And it doesn’t stop there. Transportation logistics also come into play. Poor roads, long distances and a lack of adequate infrastructure mean that part of the harvest is lost before it even reaches its destination. 

In 2025, the challenges will intensify. In this post, you’ll understand: 

• What is at stake with the accelerated growth in production? 
• Where are the biggest problems in grain storage and transportation? 
• What changes are urgently needed if Brazilian agribusiness is to continue growing sustainably? 

Happy reading! 

Grain storage: when space is lacking for so much growth 

Grain production in Brazil is growing by an average of 10.9 million tons a year. On the other hand, storage capacity is growing at a significantly slower pace, at just 4.8 million tons a year.

This gap has widened the sector’s structural deficit: in 2017, there was a shortage of 59 million tons of storage capacity. Today, that figure has more than doubled to around 120 million tons. 

In addition to limiting marketing time and increasing logistical pressures at the peak of the harvest, this mismatch results in substantial losses. In 2023 alone, around 36 million tons of grain were lost due to storage failures, many linked to the use of tarpaulins or open-air storage. 

Among the main methods used in the country are grain silos, sack warehouses, silo-bags and temporary covers. However, storage conditions are not always ideal. In addition, factors such as humidity, pests and impurities can compromise the quality of the grains. 

One fact stands out: only 16% of storage capacity is located on rural properties. The other 84% is concentrated in urban and industrial structures belonging to cooperatives or large companies. This concentration limits producer autonomy, increases transportation costs and reduces flexibility in harvest management. 

Read also: 

• 2024/2025 corn and soybean harvest: Brazil and Argentina in search of records 

Transport logistics: fragile roads, losses in motion 

The difficulty doesn’t end when the grain leaves the field. Transportation in Brazil, mostly by road, faces challenges that affect both the speed and quality of delivery. Poorly maintained roads, an aging fleet and a lack of logistical alternatives raise costs and increase the risk of losses. 

Conab experts have pointed out in their studies that transportation losses vary between 0.1% and 0.25% of the total volume, depending on the type of grain and logistical conditions. In addition to the waste, there is a direct impact on the sustainability of the chain, with high emissions of polluting gases and inefficiency in transportation. 

Production regions such as the Midwest suffer most acutely from this scenario. The area, which is responsible for 162.4 million tons, can only store 78.4 million tons, less than half of local production. This limitation forces the immediate disposal of the harvest, often in unfavorable market windows. 

Read also: 

• Understand the importance of logistics in agribusiness 

What to expect in 2025: old obstacles, renewed pressure 

At the current rate of growth, Brazil is expected to produce even more grain in the coming years, putting pressure on an infrastructure that is already operating at its limits. The outlook for 2025 is for this mismatch to continue, unless major advances are made in financing, logistics and the expansion of storage on farms. 

According to estimates by Abimaq (the Brazilian Association of the Machinery and Equipment Industry), around R$15 billion a year would be needed just to keep up with the current growth in agricultural production. Each additional ton requires investments in equipment, civil works, earthworks, electricity and transportation, totaling around R$1,500 per ton stored. 

Although there are credit lines such as the Program for the Construction and Expansion of Warehouses (PCA), linked to the Safra Plan, resources have been running out quickly. The lack of supplementary funding compromises the private sector’s ability to respond and inhibits new projects. 

Meanwhile, international comparisons show how much Brazil can still evolve. In the United States, more than 60% of storage capacity is on farms, allowing producers to store up to one and a half harvests. In Brazil, on the other hand, not even a full harvest can be stored. 

What paths are possible? 

The modernization of storage and transport infrastructure is essential in order to cope with Brazil’s new level of production. There are some fronts that deserve attention: 

• Investments in on-farm storage: in addition to reducing losses, this allows for better sales planning and reduces logistics costs. 
• More flexible logistics planning: given the unpredictable nature of harvests, it is essential to have systems capable of adapting quickly to variations in volume and time. 
• Integration of risk management tools: considering the high degree of volatility in the agricultural market, it is important that producers and companies have access to instruments that allow them to mitigate operational and financial risks. 
• Expanding access to credit: more robust and agile lines of financing are fundamental to unlocking investment in infrastructure. 
• Improving the multimodal transportation network: with greater integration between roads, railroads and waterways, the flow of crops can become more efficient and sustainable. 

Read also: 

• The importance of hedge diversification in the commodities market 

Opportunities and challenges for Brazilian agribusiness 

The grain storage and transportation scenario in Brazil requires urgent attention. With accumulated losses due to failures in storing and moving the crop, producers and companies in the sector are facing growing challenges. 

Anticipating these obstacles and understanding market movements is increasingly strategic. To continue evolving in 2025 and beyond, Brazilian agribusiness will depend on investment, adaptation and access to reliable, up-to-date information. 

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