The Impact of Port Expansion on Brazilian Soybean Output
A robust expansion of Brazil’s soy area is anticipated, particularly where productive areas can be connected to the increased export port capacity.
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Global grain & oilseed consumption is expected to increase throughout the next decade. As Brazil features over 75 million hectares of underused pasturelands which could be turned into productive cropland, it is a natural candidate for responding to this demand by increasing supply, especially of soybeans—its main export grain commodity.
Lacking port capacity and a history of underinvestment in port terminals has, however, remained a key bottleneck for Brazil when it comes to fully realising its grain trade potential. Yet starting in 2013, changes in the country’s regulatory framework underlying port use have been helping to proliferate investments in port capacity, and Brazil’s exporting capabilities are expecting a boost.
Accordingly, a robust expansion of Brazil’s soy area is anticipated, particularly where productive areas can be connected to the increased export port capacity.
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