Brazil floods struck food silos, interrupt paths to major grains port

Heavy flooding in southern Brazil has struck food storage facilities in lower areas while hampering the shipping of grains to port, jeopardizing the nation's exports and wreaking havoc to the economy of Rio Grande do Sul state, a large soy, meat, rice and wheat manufacturer.

Anec, an association representing global grain exporters, stated on Tuesday access to the port of Rio Grande had actually been interfered with as a regional railway stopped running. The group, which represents companies like Cargill and Bunge, also pointed out road blockades forcing grain trucks to travel an additional 400 kilometers (248.55 miles) through alternative paths to reach the port, increasing freight costs.

The unprecedented environment occasion, which left whole towns under water and destroyed important infrastructure in the capital and backwoods, likewise killed livestock and captured farmers in the lasts of the corn and soy harvests, clouding the outlook for national grain production in 2023/2024.

The escalating crisis likewise led competing meatpackers to join forces to prevent logistical hurdles produced by the heavy rainstorms, which disrupted water and electrical energy services to 1.4 million individuals, the state's Civil Defense agency said.

According to a regional meat lobby, the meat companies began sharing resources to accelerate shipment of feed and water products to chicken and hog farms, where an unspecified number of animals have perished due to the disastrous floods.

Paulo Pires, president of Rio Grande do Sul farm lobby Fecoagro, said it was too early to know just how much grain production had been lost due to the flooding that hit silos around river areas.

They are large silos, so it is considerable, but it is actually hard to quantify this, Pires stated by telephone.

Gedeao Pereira, president of farming lobby Farsul, validated separated cases of food silos being hit however floods, but stated they could dry in time and thus losses would be decreased. Pereira said he is more concerned with crops like soy which farmers have yet to harvest in Rio Grande do Sul, especially in And southern locations.

Earlier on Tuesday, the state's port authority said Rio Grande was operating generally as its terminals had actually not been affected by the rise in the level of the Laguna dos Patos lagoon.

At around 8 a.m. the current was lessening in the access channel Rio Grande port, permitting water to flow at a speed of about 3 knots, the equivalent of 5.55 kilometers per hour, the authority noted. The tide table indicated a level of 90 cm above typical.

Cargonave, a shipping firm, confirmed slower grain arrivals at Rio Grande port, which last year had actually exported 10.4 million lots of soybeans and 3.6 million tons of soymeal.

(source: Reuters)