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In a groundbreaking initiative, Conab and BNDES are joining forces to transform agricultural storage in Brazil. The strategic partnership promises to modernize warehouses and significantly expand the storage capacity of essential products, ensuring food security and price stability.
In an initiative that promises to transform the agricultural storage scenario in the country, the National Supply Company (Conab) and the National Bank for Economic and Social Development (BNDES) signed a strategic agreement to modernize and expand the storage capacity for agricultural products.
This movement aims not only to optimize the management of public stocks, but also to strengthen national food security.
Strategic partnership for modernization
On February 12, 2025, Conab and BNDES formalized a contract for the provision of specialized technical services.
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The goal is to expand Conab's storage capacity, which currently has a static capacity of 1,66 million tons and an operational capacity of 900 thousand tons. The goal is to increase this capacity by 33% after the recovery of the properties involved in the partnership.
Sale of investment properties
The partnership's core strategy involves the sale or concession of nine Conab real estate assets that are currently underutilized or decommissioned.
These properties, located mainly in urban areas without operational viability for storage activities, will be offered to interested public and private agents.
In return, purchasers or dealers must invest in the renovation and modernization of warehouses designated by Conab.
This approach allows resources to be directly applied to improving storage infrastructure, without going through Conab's cash register, ensuring greater efficiency and transparency in the process.
Properties involved in the first phase
In the first phase of the project, the following properties will be sold or granted:
- A commercial floor in Brasília, currently assigned to Anater;
- Warehouses deactivated in Santa Helena (GO), Palmeira de Goiás (GO), Paraúna (GO), Dourados (MS), Rio Brilhante (MS), Cassilândia (MS), Alta Floresta (MT) and Sinop (MT).
These assets are valued at approximately R$175 million and generate an annual maintenance cost of around R$8 million.
Investments and expectations
Conab predicts that, after the renovation of the selected units, the operational storage capacity will reach 1,2 million tons.
Furthermore, the partnership with BNDES is aligned with the federal government's strategy of expanding public stocks of essential agricultural products, such as wheat, corn and rice, aiming to guarantee price stability and food security.
Technical cooperation agreement
On December 17, 2024, a Technical Cooperation Agreement was signed between the Ministry of Management and Innovation in Public Services (MGI), BNDES, the Ministry of Agrarian Development and Family Farming (MDA) and Conab.
This agreement aims to strengthen Conab's actions, modernizing and expanding warehouses that are essential for the formation of public stocks.
The initiative is part of the State-Owned Companies Governance and Modernization Program – Inova, which seeks to consolidate the performance of Brazilian state-owned companies.
Challenges and opportunities in agricultural storage
Currently, Conab has 64 active storage units, of which 27 were closed during previous governments.
In addition to its own warehouses, Conab It has another 75 accredited storage units, owned by private agents, with a capacity of 5 million tons.
In 2024, R$14 million was invested in the recovery of warehouses, and the forecast for 2025 is an investment of R$75 million, with R$15 million coming from the company's budget and the remainder in partnership with Itaipu Binacional.
Importance of public stocks
Maintaining public stocks is crucial to balancing market prices and ensuring the availability of food in regions in need.
Currently, of the 900 thousand tons of Conab's operational storage capacity, around 200 thousand tons are occupied by wheat stocks.
The remainder is rented to private agents or used to store basic food baskets intended for public donation.
Future perspectives
The partnership between Conab and BNDES It is part of the state-owned company's strategy to at least double its storage capacity by the end of 2026.
There is a great need to expand storage capacity in Brazil, which currently stands at 210 million tons.
Strengthening storage infrastructure is essential to ensure food security and economic stability in the country.
The collaboration between Conab and BNDES represents a significant step towards the modernization of agricultural storage infrastructure in Brazil.
By optimizing resources and directing investments to strategic areas, this partnership seeks to ensure efficiency in the management of public stocks and strengthen national food security.
Do you believe that the modernization of Conab warehouses could have a positive impact on food security and the stability of food prices in Brazil?
