What is in this article?:
- Record crop production will challenge infrastructure in Brazil
- Exports and infrastructure bottlenecks
Rabobank has released a 2014 outlook for Brazil’s crop production. They say another record year is ahead for major crops in Brazil, including soybeans. However, Brazil commodity prices will not reach records, and could fall further in 2014, says the outlook.
Infrastructure and logistics remain key points of concern for Brazil for 2014, particularly for the export market. With production and export volumes set to rise again, and further increases in transport fuel costs implemented at the end of 2013, there is little chance of lower logistics costs in 2014.
“Due to slowing economic growth and high inflation in Brazil, the domestic market will have limited scope to drive growth in sales in 2014,” explained Rabobank analyst Andy Duff. “It is possible that some growth may come from exports, but with declining global commodity prices, revenue growth would have to come from an increase in export volumes, or a declining exchange rate, or both.”