HomePublicationsILOS in the PressLack of grain warehouses increases road traffic after harvest

Lack of grain warehouses increases road traffic after harvest

Source: Valor Econômico

The lack of silos impacts the road network along the main agricultural transport routes. The situation is especially difficult in the Central-West region, which accounts for almost half of the national grain harvest and where 47% of what is produced has nowhere to be stored. The region's silos have an installed capacity of 84,5 million tons of grain. In the 2024/2025 harvest, the deficit was almost 75 million tons.

This scenario affects producers' costs, says Maurício Lima, managing partner of the Institute of Logistics and Supply Chain (ILOS). "Due to market dynamics, the rapid increase in demand ends up raising the prices of road transportation itself," he says. Large volumes of low-value-added cargo—such as agricultural products—would cost much less if transported over long distances by rail, rather than by road, which currently accounts for over 62% of shipments, he notes.

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