That is a great question! My guess is that this is another infrastructure problem -- that it is still logistically difficult to get the materials in to build grain bins for storage. Also with the lack of credit for many farms, it is likely too costly to make these types of capital expenditures.
Would love others' thoughts as well if they are more familiar!
This article is spot on. I loved the brazilian "jeitinho" reference and the "don't be a tourist". Brazilians welcome tourists, they are friendly, but the "gringo" (foreigner) mindset does not help to build a business and they end up getting pushed out. This market is so unique and needs to be appreciated from thar angle.
Great article, and very informative, however the topic deforestation and the information about "ample incentives for individuals to convert farmland, with few consequences for doing so" is not the true. Maybe another paper clarifying this topic would be very helpful.
Thank you Elizeu! I’d love to learn more — it sounds like a lot of progress has been made (especially since the Amazon Soybean Moratorium) but that there is still difficulty in traceability and enforcement and less protection in the Cerrado. Would love other thoughts/resources as you are closer to the action!
Ariel
I have often heard that the is little storage in Brazil. Why is that? Is the climate such that it would be difficult keeping the grain from spoiling?
That is a great question! My guess is that this is another infrastructure problem -- that it is still logistically difficult to get the materials in to build grain bins for storage. Also with the lack of credit for many farms, it is likely too costly to make these types of capital expenditures.
Would love others' thoughts as well if they are more familiar!
Reading this newsletter is great, but helping to co-write it is even better! Thank you for the opportunity and for the trust, Ariel :)
This article is spot on. I loved the brazilian "jeitinho" reference and the "don't be a tourist". Brazilians welcome tourists, they are friendly, but the "gringo" (foreigner) mindset does not help to build a business and they end up getting pushed out. This market is so unique and needs to be appreciated from thar angle.
Thanks for sharing, keep writing!
Great article, and very informative, however the topic deforestation and the information about "ample incentives for individuals to convert farmland, with few consequences for doing so" is not the true. Maybe another paper clarifying this topic would be very helpful.
Thank you Elizeu! I’d love to learn more — it sounds like a lot of progress has been made (especially since the Amazon Soybean Moratorium) but that there is still difficulty in traceability and enforcement and less protection in the Cerrado. Would love other thoughts/resources as you are closer to the action!
Hello Ariel. Regarding Soybean Moratorium, there is a good opinion from Lucas Costa Beber, president from APROSOJA-MT. It worth the reading: https://www.estadaomatogrosso.com.br/opiniao/a-moratoria-da-soja-e-a-arte-do-engodo/91817.
Thank you for sharing this perspective, Elizeu!