China was eagerly buying Brazilian commodities and Brazilian producers were happily counting money. But Chinese buyers are afraid of one of the biggest problems in Brazilian economy: investments in infrastructure.
Our production is growing faster than the infrastructure. This year, the country should harvest of 183.6 million tons, an increase of 10.5% in production compared to 2012. This will be the largest crop in our history.
It’s a marvellous growth, no doubt. The problem is the infrastructure to drain all this output. We don’t have ports and logistics infrastructure able to drain this massive amount of commodities. Today, our bigger port, the Port of Santos, located in the city of Santos, in the coast of São Paulo, is suffering. The queue of trucks waiting to transport their cargo at the port of Santos reached 30 km. The lack of infrastructure has created a permanent queue of hundreds of trucks.
All these problems and slowness to drain the production made our biggest importer, the Chinese group Sunrise, cancel the purchase of nearly 2 million tons of soybean due to the delay caused by the lack of infrastructure in Brazil. This decision represents a loss of billions of dollars to Brazilians farmers.
The poor infrastructure also helps to destroy much of the crop. In the state of Mato Grosso, producers have lost part of their harvest for lack of trucks to transport the crop. They also have no place to store the harvested soybeans.
According to The Economist, "Brazil’s government has woken up to the urgent need to improve the country’s infrastructure. It is auctioning road, railway and airport concessions. Last month it added ports to the list, promising to spend 54 billion reais to expand and dredge public ports and to improve landside access over the next five years". But today, in Brazil, the infrastructure problems are still far from a solution.