Can Brazil's infrastructure handle booming G&O production?

Brazil’s infrastructure has not expanded to match the country’s growing corn and soybean production, resulting in downward pressure on interior corn and soybean prices. Also, the increasing cost of logistics risks wiping out already tight origination margins and reducing the appetite for enlarging asset structure. The current economic environment and record interior freight costs have squeezed traders’ and cooperatives’ origination margins and forced the grain origination sector to adopt an "asset-light" model. However, by 2027, Brazil's port capacity will not be able to handle growing grain & oilseed export volumes. Warehouses, rails, roads, truck fleets, and ports require new investments to accommodate the increasing grain & oilseed production. Brazilian farmers proved they are capable of responding to price stimulus. Now, investment in infrastructure needs to follow suit.