Brazil boosts infrastructure to help lower transportation costs

by | Mar 23, 2017 | 5 Ag Stories, News

Brazil knows they have a disadvantage compared to the U.S. when it comes to exporting their Ag products. But there are starting to step it up a notch inch by inch.

Brazilians know how to produce good corn and soybean crops. But their problem is efficient transportation.

Mike Steenhoek is Executive Director of the Soy Transportation Coalition.

?They realize there is a lot of money not being retained in farmers? pockets because their cumbersome inefficient transportation system and so there has been this strong aspiration, for years now, to improve all of their modes of transportation including their ports.?

These include ports at San Paulo in the South but ones in the North as well.

?Which is close to some of the significant production areas like Mato Grosso. What all of that really will eventually do, is it will reduce the cost of getting products to the coast. It will also improve basis for farmers in Brazil and improve their competitive posture versus the United States.?

Steenhoek says the good thing is Brazilians make these plans and don?t always follow through.

?Even if half of these come to fruition, it will have an impact on their competitiveness. We in the U.S. need to make sure we are making proper investments in our infrastructure so we remain the most economical choice in the world market.?

He says therefore an infrastructure bill to fix the nation?s roads and bridges is essential.