Brazil has enacted a law making certification for grain storage warehouses voluntary rather than mandatory. This change is expected to increase the number of facilities eligible to operate within the National Supply Company (Conab) network, addressing a significant deficit in storage capacity for the country's growing grain production.
The change is expected to alleviate Brazil's significant grain storage deficit, supporting the nation's agricultural sector growth and potentially improving market access and efficiency for producers.
Brazil has enacted legislation that shifts the requirement for grain storage warehouse certification from mandatory to voluntary. This change, amending Law No. 9,973/2000, is anticipated to expand the number of facilities that can formally operate within the National Supply Company (Conab) network.
According to Conab, this adjustment is crucial for addressing the growing deficit in the country's grain storage capacity. Over the past decade, annual grain production has surged by an average of nearly 7%, while storage capacity has only increased by 2.4%. Brazil currently has the capacity to store only 60% to 63% of its annual grain output, resulting in a shortfall of over 130 million tonnes.
Previously, Conab could only utilize certified storage units, which represented a small fraction of the total warehouse system. The new legislation aims to reduce bureaucratic obstacles and encourage new investments by making certification a value-added credential rather than a mandatory expense. Arnoldo de Campos, Conab's Director of Operations and Supply, stated that the law simplifies the accreditation process, lowers costs, and is expected to boost investments in storage infrastructure.
Conab emphasized that the change does not compromise the quality and safety of stored agricultural products. Existing regulatory instruments, including official classification standards from the Ministry of Agriculture and Livestock, audits, and traceability requirements, continue to ensure product integrity. Furthermore, the amendment will not affect Brazil's access to international markets, as sanitary and phytosanitary requirements from trading partners are guaranteed by separate instruments.