Southern Brazil floods affect grain exports

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Severe flooding in southern Brazil has significantly impacted the economy of Rio Grande do Sul, a major producer of soy, rice, wheat, and meat. The floods have damaged food storage facilities and disrupted transportation routes to the port of Rio Grande, leading to increased freight costs and jeopardizing Brazil’s grain exports. Rail services have halted, and road blockades have forced trucks to take longer routes to the port. This climate catastrophe has also affected livestock, with losses in the final stages of the corn and soy harvests further clouding the national grain production outlook for 2023/2024. Local meat companies have even collaborated to mitigate supply chain disruptions, sharing resources to deliver feed and water to farms. Despite some isolated cases of food silos being flooded, the state’s port authority reported that the port terminals were operating normally, as they were not affected by the rise in the Laguna dos Patos lagoon levels. However, the overall situation remains critical, with ongoing challenges in assessing the full impact on agriculture and exports.

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