With more than 90% of the second corn crop harvested in Mato Grosso, farmers in the State have a 16.3% drop in road freight to transport the cereal through Northern Arc, in the first year when paving BR-163 has become a logistical benefit. The decline in freight, a relevant cost for the sector, is another factor driving the profitability of the Brazilian producer, who benefited this year from firm demand from China and the effect of the exchange rate on prices in the 2019/20 season. After exporting most of the soybeans, the country now enters the corn shipping campaign. Data from the Mato Grosso Institute of Agricultural Economics (Imea) provided to Reuters indicate that the cost of grain transportation between Sorriso (MT) and Miritituba (PA) fell from 239 reais per tonne in July 2019 to 200 reais last month. “Paving contributed to the increase in the logistical capacity of Mato Grosso. As we have over 90% of the harvested corn crop, the job now is to take it to the port ”, said the superintendent of Imea, Daniel Latorraca.
Source: Reuters