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In a Revolutionary Initiative, Conab and BNDES Join Forces to Transform Agricultural Storage in Brazil. The Strategic Partnership Promises to Modernize Warehouses and Significantly Increase the Storage Capacity of Essential Products, Ensuring Food Security and Price Stability.
In an initiative that promises to transform the agricultural storage landscape in the country, the National Supply Company (Conab) and the National Bank for Economic and Social Development (BNDES) have signed a strategic agreement to modernize and increase the storage capacity of agricultural products.
This move 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 increase Conab’s storage capacity, which currently has a static capacity of 1.66 million tons and an operational capacity of 900 thousand tons. The target is to increase this capacity by 33% after the recovery of the properties involved in the partnership.
Disposal of Properties for Investment
The central strategy of the partnership involves the disposal or granting of nine real estate assets from Conab that are currently underutilized or deactivated.
These properties, located mainly in urban areas with no operational viability for storage activities, will be offered to interested public and private agents.
In return, buyers or concessionaires 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 passing through Conab’s cash flow, 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 disposed of or granted:
- A commercial floor in Brasília, currently leased to Anater;
- Deactivated warehouses 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 expects that, after the renovation of the selected units, the operational storage capacity will reach 1.2 million tons.
Moreover, the partnership with BNDES aligns with the federal government’s strategy to increase public stocks of essential agricultural products, such as wheat, corn, and rice, aiming to ensure 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 Agriculture (MDA), and Conab.
This agreement aims to strengthen Conab’s actions, modernizing and expanding the warehouses essential for forming public stocks.
The initiative is part of the Governance and Modernization Program for State-Owned Enterprises – 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 has another 75 accredited storage units from 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 rest in partnership with Itaipu Binacional.
Importance of Public Stocks
The maintenance of public stocks is crucial for balancing prices in the market and ensuring the availability of food in needy regions.
Currently, of the 900 thousand tons of operational storage capacity of Conab, about 200 thousand tons are occupied with wheat stocks.
The remainder is leased to private agents or used for storing basic food baskets intended for public donation.
Future Perspectives
The partnership between Conab and the BNDES is part of the state-owned company’s strategy to at least double its storage capacity by the end of 2026.
There is a significant 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 modernizing agricultural storage infrastructure in Brazil.
By optimizing resources and directing investments to strategic areas, this partnership aims to ensure efficiency in the management of public stocks and strengthen national food security.
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