PRINTABLE VERSION   EMAIL TO A FRIEND   RSS FEEDS 17:42 UK, 18th Mar 2013, by Agrimoney.com
Brazil names new farm boss - who needs road powers

Antonio Andrade will later on Monday take on one of the biggest jobs in world farming, as Brazil's agriculture minister, but lacks the powers to tackle the sector's biggest problem – infrastructure bottlenecks.

Mr Andrade will at a ceremony in the farm ministry formerly take over as minister of agriculture, livestock and food supply from his predecessor, Mendes Ribeiro Filho, who has suffered health problems since assuming the post two years ago.

Mr Ribeiro later in 2011 underwent surgery to treat a recurrent brain tumour.

The post hands Mr Andrade oversight of a Brazilian agriculture sector which ranks as the world's top exporter of chicken, coffee and sugar, is expected to take top position in soybean shipments too, and is also a world force in beef, corn and cotton.

'Nothing ever seems to get finished'

However, the top setback troubling farmers represents the difficulties and costs of getting crops to ports, a problem which lies with the ministry of transport.

"What farmers would really like is to get railroads built, improved roads," Kory Melby, the Brazil-based agriculture consultant, said.

"We have been waiting four or five years for a lot of projects to get completed. A lot of projects are announced, but nothing ever seems to get finished."

While Brazil has announced a series of road, rail and airport projects, many are involved in meeting needs for hosting the Olympic Games and World Cup rather than agriculture, and a number even of these schemes have been halted thanks to corruption allegations.

'Steadily-increasing soy line-up'

Brazil's existing infrastructure has choked on the country's increasing agricultural productivity, which has included hefty rises in cane, corn and coffee output last year, while the country is now well through what is expected to be a record soybean harvest.

In Mato Grosso, the main soybean growing state, it can take a week to deliver grain to one of the three rail terminals in the south east, even before the crop gets anywhere near port.

In Parana, served by the port of Paranagua, it costs some $R8-9 per sack, equivalent to $1.80-2.00 a bushel, to move corn from western farms to docks, with bills far bigger for transporting from inland states, according to crop scout Michael Cordonnier at Soybean & Corn advisor.

The difficulties are blamed for turning some buyers to other exporters, such as Argentina or the US for soybeans.

In the US, Richard Feltes, at broker RJ O'Brien, on Monday flagged a "steadily-increasing Brazil soy line-up" of vessels queuing to load up, with the delay estimated at 11m tonnes in volume terms, and 55-60 days in waiting time.

 'Best he could'

Mr Ribeiro had done the "best he could given the political environment" in Brazil, Mr Melby said, referring to the difficulty of progressing infrastructure projects.

Farmers have gained support including an extension until 2015 of a programme of cheap loans for machinery purchases.

Mr Andrade "has a long history of involvement in Brazilian agriculture", Soybean & Corn advisor said, noting that Soybean & Corn advisor, noting that in Brazil's Congress he has been a member of the agricultural committee, the Mines and Energy Committee and a special commission on agroindustry and rural production.

Mr Andrade said after his appointment was announced by Dilma Rousseff, the Brazilian president: "May God bless our work."

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