SC needs to expand the storage capacity of grain
Deficiency of storage cause havoc to the states economy and worsens with each new harvest. The Organization of Cooperatives of the State of Santa Catarina (Ocesc) requested support from Government to change this reality: the current storage capacity of cereals is little more than 4 million tons to total state production of 6.5 million tonne grain, generating a 40% deficit needs. Ideally, in any country in the world, is a structure of silos and warehouses for at least 120% of production.
According to the president of Ocesc, Marcos Antonio Zordan, the problem reaches the 53 member agricultural cooperatives and their 63,000 farmer members. These cooperatives have their own silos and warehouses to 2.1 million tons of grain which, added to the outsourced units (178 tons), totaling an overall storage capacity of the cooperative system at 2.3 million tonnes.
The ruling emphasizes that cooperatives are practically the only ones to invest: in recent years they have allocated around R $ 150 million reais, increasing the installed capacity of 250,000 tonnes.
Survey of Ocesc concluded that 42 new stores in 41 cities, operated by 22 agricultural cooperatives with a total capacity of approximately 520,000 tons, which will require investments of R $ 246 million reais are needed.
Zordan summarizes the claim of the productive sector: “We need to specifically stimulate the expansion of the network of warehouses with specific credit lines for construction, equipment purchase and renovation of existing units, and encourage the storage on the property. For both the opening lines of funding through the rural credit with a term of 20 years to pay with lower than those charged in the moment, for the construction of warehouses “interest system is needed.
State support has been confirmed and will be in two spheres: the federal and state levels. The Federal Government last year created the Program for Construction and Expansion Warehouse (PCA), with funds via Bank of Brazil and the National Bank for Economic and Social Development (BNDES) to leverage the Brazilian storage over the next five years. Cooperatives and producers take funding through the PCA and the State Government will pay 50% of the financial burden (interest).
Marcos Zordan notes that “this state cooperation is important because the investment is high, the return is very slow and finance charges are high in the face of its operative nature.”
STRUCTURAL
The lack of storage is a structural problem with profound consequences on the level of income of the producers. Because warehouses are insufficient to receive and store production, one of the alternatives to alleviate this difficulty is to export products to other countries, especially maize, for import from other states to meet the needs as the state’s large consumer grain. With this operation Santa Catarina lost in storage since about the product exported No ICMS. On admission of products from other Member States is generated from the tax credit.
The Ocesc found that the problem affects all the actors in the production chain. With insufficient warehouses, the producer is obliged to sell the commodity in full harvest time when prices are falling naturally due to the high bid. The industry also suffers damage because he sees the raw material is exported, knowing you will have later to re-import it to the industrial process, paying more. At the end, the consumer will pay more for food – whether meat, milk or cereal – and the state, too. by ICMS credits.
Source: Communication MB
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