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Storage deficit in Mato Grosso drives use of silo bags to store corn on farms.

Silo bolsa

The prospect of another record grain harvest in Mato Grosso brings to light an old problem in the field: the lack of infrastructure to store the produce. Production is growing at a faster pace than storage capacity is expanding, widening a bottleneck that directly impacts logistics, costs, and the profitability of rural producers.

Currently, grain storage capacity in Brazil is estimated at around 225 million tons, proving insufficient to meet national production. This number means that a large part of the production needs to be transported immediately after harvesting, putting pressure on logistics, increasing queues at receiving units, and reducing the negotiating power of rural producers.

Given this scenario, the use of silo bags is growing as a temporary or complementary alternative for on-farm storage. According to Gilson Antunes de Melo, Vice-President for the Western Region of the Mato Grosso Soybean and Corn Producers Association (Aprosoja MT), the storage deficit remains one of the main structural challenges faced by Mato Grosso producers, compromising farm planning and reducing producers' autonomy when marketing their production.

“When harvest time arrives, producers often have nowhere to store their produce. In several cities in Mato Grosso, there are only one or two warehouses, and everyone ends up harvesting at practically the same time. This leads to queues for unloading, and producers have their trucks waiting for days. This delay directly affects the harvest, reduces productivity, and compromises profitability. In practice, they end up at the mercy of trading companies and those who have the infrastructure to receive and store the product. And, of course, without the product in hand, they cannot negotiate at the time they consider most appropriate, but rather when the market is buying. If they had the product stored on their own property, with storage infrastructure, they could choose the best time to sell, obtaining better prices and greater profitability,” he pointed out.

Given this scenario, Gilson believes that silo bags have become established as an efficient and economically viable alternative for expanding storage capacity on farms.

“The silo bag was a perfect fit for this scenario. Considering that the storage capacity covers approximately 50% of the harvest, the remainder ends up staying in the fields or in trucks. In this context, the silo bag has become one of the first alternatives for producers to store their production. It doesn't require a high implementation cost, maintains grain quality, and allows producers to sell at a more strategic time, when the market is not in full harvest, which generally results in better prices. Today, after conventional warehouses, the silo bag is one of the most viable alternatives, especially for the second harvest. It's a solution that guarantees product preservation at a relatively low cost, considering the benefits it offers,” emphasized Gilson Antunes de Melo.

According to the Mato Grosso Institute of Agricultural Economics (IMEA), although Mato Grosso has the largest installed capacity in the country, with approximately 57.9 million tons, this volume is only sufficient to store 52% of the state's total grain production, according to the National Supply Company (Conab), and 56% if only soybean and corn crops are considered, generating an estimated deficit of 45.28 million tons. This mismatch highlights a structural bottleneck, in which the expansion of production consistently outpaces the evolution of infrastructure.

Ivo Frohlich Júnior, a farmer from Campos de Júlio, reports that the lack of space to store the produce on his property completely changes the dynamics of harvesting and selling corn.

“The main reason that led us to adopt the use of silo bags was the possibility of obtaining a better price. During the off-season, it is possible to achieve more attractive prices, which ends up compensating for all the costs of the system and guaranteeing profitability. Another important point is the issue of freight, since hiring trucks, especially in the case of corn, significantly increases logistics costs. In addition, there are also the discounts offered by companies and storage costs. With silo bags, the producer gains more autonomy, since he is free to negotiate in the market, sell to whomever he wants and whenever he can, including to the domestic market, without paying storage costs. For me, it remains one of the best options available,” he stated.

In practice, the use of silo bags has been gaining increasing traction among producers as an alternative to expand autonomy in storage and improve marketing strategies. For Ivo, the tool has already become essential on the property, especially given the limitations of the traditional storage infrastructure in the state.

“For me, the silo bag has become an indispensable tool. Without a doubt, producers who don't yet use this alternative end up leaving a lot of money to trading companies. I see the silo bag as one of the storage technologies that are here to stay and are being used more and more. Those who have adopted this tool to date generally don't regret it, precisely because of the benefits it offers. And the trend is that more and more producers will start using it,” said Ivo.

Due to the constant increase in production and structural shortcomings, the use of silo bags is emerging as an increasingly common alternative in the field, while the sector seeks long-term solutions to balance grain supply and storage capacity in the state. For the entity, expanding storage infrastructure remains one of the strategic priorities for strengthening the sector.

THE Bela Cereais works with the best grains on the market in the Central West Region and also keeps you up to date with the latest news and analyses on agribusiness.
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