Club correspondent Brazil P&I report that this storage deficit leaves the remaining 118.5 million tons of grains to be stored under improper conditions, such as in silo bags or even in open air, exposing the goods to moisture, animals and other threats to the quality of the grain.
Data from the Sectoral Chamber of Grain Storage Equipment of the Brazilian Association of Machinery and Equipment Industry (Abimaq) estimates that investments of R$15 billion per year is necessary in storage.
Additionally, the lengthy duration in the construction of storage silos, logistical disruptions, a loss of quality in exported products, and difficulties in negotiating commodity prices could become obstacles for shipowners.
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