Wednesday, April 17, 2013

The Benefits Of U.S. Infrastructure for Farmers

To get a good idea, take a look at Brazil  (h/t Big Picture Agriculture, check it out, lots of great links):

Santos, in the state of São Paulo, is 2,000 kilometres away from the main soybean producing area in the centre-west state of Mato Grosso, yet it handles nearly 60 percent of exports of the crop, most of which is hauled in by truck.
Transporting each tonne of soybeans costs nearly 70 dollars more in Brazil than in the United States, analysts say, adding that this profit drain would cease if production were shipped from northern ports, which are closer to the crops and to the export markets.
The predominance of trucks, which handle 60 percent of freight in Brazil, also makes the logistics more expensive.
Godinho is one of almost 600,000 independent truckers on Brazil’s roads, many of which are potholed or unpaved. He usually hauls soybean and maize from an area near his home, in the city of Ituverava in São Paulo, to Santos, 480 kilometres further south, and carries fertilisers on the trip home.
Without a return cargo, it wouldn’t be worth his while, because the road tolls cost 580 reals (290 dollars), almost as much as the fuel used by his truck, which carries up to 32 tonnes, he told IPS after unloading the soy at the port. On the positive side, the São Paulo highways he drives on are in good condition.
“The tolls and the bandits” are a trucker’s worst enemies, he said, although he himself has not been robbed on the highway. “But many of my friends have,” said the 57-year-old, who reckons he has had “a good life,” but is glad his three children have chosen other trades.
Congested ports are the tip of the iceberg, but the long logistical chain has many other bottlenecks.
Volmar Michelon, the co-founder of Pedromar Transportes, a firm with 85 vehicles and a hundred employees, told IPS that his drivers “wait up to 48 hours to unload soybean” in Alto Araguaia, on the southeast border of Mato Grosso, on to freight cars that transport it 1,240 kilometres by rail to Santos.
70 dollars a ton is $2.10 a bushel.  We don't know how good we have it.  In other South American news, Paraguay emerges as a major agricultural player on world markets. 

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