Key facts
- Brazil amended its law concerning grain storage facilities.
- Certification for grain storage warehouses is now voluntary.
- Previously, certification was mandatory.
- The change aims to increase the number of eligible facilities in the Conab network.
- This is intended to address a deficit in grain storage capacity.
- The deficit is linked to the country's growing grain production.
Brazil has enacted a new law that alters the requirements for grain storage warehouses. Previously, certification for these facilities was mandatory. Under the amended law, this certification process is now voluntary. The Brazilian government anticipates that this change will lead to a significant increase in the number of storage facilities that can operate within the National Supply Company (Conab) network. This expansion is crucial for addressing a considerable deficit in the country's grain storage capacity. The growing volume of Brazil's grain production has outpaced the available storage infrastructure, creating a bottleneck for the agricultural sector. By making certification voluntary, the government hopes to encourage more warehouses to join the Conab network and help alleviate the storage shortage.