Logistical limitations of Brazilian agriculture cost US$ 14 billion, says USDA

The growth of Brazilian agricultural production in the next decade will depend less on the opening of new areas and more on the country's ability to expand its logistics infrastructure. The assessment is contained in a report released this week by the USDA (United States Department of Agriculture) attaché in Brasília, which identifies bottlenecks in storage, transportation and flow as the main factors capable of limiting the expansion of Brazilian agribusiness until 2034.

The document highlights that Brazilian agriculture has advanced to new productive frontiers in the Center-West and North of the country at a faster pace than the expansion of highways, railways, ports, waterways and storage structures. As a result, logistical inefficiencies already represent approximately 30% of agricultural production costs in the country. More than 60% of the road network has some type of operational deficiency.

According to the USDA, the economic impact of these limitations will reach approximately US$14 billion in 2025, reflected in additional freight costs, port congestion, storage restrictions and logistics premiums charged along the chain.

Production grows faster than infrastructure
The concern arises at a time of strong expansion in Brazilian agriculture. In 2025, the country exported US$169 billion in agricultural products, with China accounting for 33% of this total, equivalent to US$55.2 billion. The European Union and the United States followed, with shares of 15% and 7%, respectively.

Exports of the soybean complex grew from 19 million tons in 1997 to 133 million tons in 2025. In the same period, exports of corn and derivatives increased from 379 thousand tons to 41 million tons.

The report points out, however, that infrastructure has not kept up with this expansion. Grain storage capacity only covers between 60% and 70% of national production. In the United States, capacity is equivalent to around 150% of annual production.

The national storage deficit reaches 134 million tons, according to the USDA, with data from 2024.

The American body cites data from Cogo Consultoria which calculates that around R$140 billion in investments would be needed to eliminate this difference.

The situation is particularly critical in the Central-West. The region projects a storage deficit of 87 million tons in 2026. In Matopiba - an agricultural frontier formed by areas of Maranhão, Tocantins, Piauí and Bahia - the deficit approaches 60%. In Rondônia, it can reach 70%.

Dependence on highways puts pressure on costs
With regard to transportation, the American agency's report notes that a fleet of around 130,000 trucks would be sufficient to transport the Brazilian harvest for most of the year. During peak periods, however, storage limitations and congestion in ports, railways and waterways increase the need for more than 200 thousand vehicles.

More than 95% of Brazilian warehouses depend primarily on road transport to receive and dispatch cargo.

The document cites data from EsalqLog and CNA that indicate less than 20% of the country's storage capacity within rural properties.

Licensing and bureaucracy delay projects
Despite private interest, the USDA points out difficulties in transforming announced investments into operational infrastructure. "The authorization process for new terminals involves environmental licensing, area assignments, naval approvals, state licenses and municipal authorizations. Between 2013 and 2019, 70 authorizations for terminals were granted. Of these, 21 did not enter into operation within the legal period of five years," says the text.

The main obstacles identified were environmental issues, responsible for 27% of cases, followed by financial difficulties and legal obstacles, each with 14%.

The report also mentions delays in environmental licensing, administrative inefficiencies and regulatory bottlenecks as factors that continue to limit the expansion of private terminals.

Railways advance, but participation is still limited
The USDA considers railway expansion one of the main instruments for reducing Brazilian logistics costs. According to the agency, long-distance rail transport reduces freight costs by between 15% and 25% compared to road transport.

The railway network granted currently totals 30,808 kilometers. Although iron ore accounts for 72% of the cargo transported, soybeans and bran already represent 8%, while corn accounts for 6%.

Among the projects considered strategic by the USDA are the Mato Grosso Railway, Nova Ferroeste, Ferrovia Norte-Sul and Ferrogrão. The latter, in the study phase, foresees a 933-kilometer connection between Sinop (MT) and Miritituba (PA), creating an alternative to BR-163 for access to the ports of Arco Norte.

Waterways face climate restrictions
The document pays special attention to Amazon waterways, considered fundamental for the competitiveness of Brazilian exports. Between 2010 and 2023, the share of waterway transport in the movement of agricultural products increased from 8% to 13%.

The Madeira, Amazon and Tapajós rivers have consolidated themselves as relevant logistical corridors for the flow of production from the Center-West. However, periods of drought, draft restrictions and navigation difficulties have generated additional costs.

The USDA cites the charging of drought surcharges by shipping companies and mentions structural limitations in the Barra Norte waterway, responsible for a large part of the cargo leaving Barcarena, in Pará.

In February this year, trucks faced queues of up to 40 kilometers at the Miritituba river terminals, due to access limitations and operational bottlenecks.

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Source: CNN