Sep 17, 2025
Silo Bags to Help Alleviate Storage Deficit in Brazil
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Brazil celebrated a historic grain harvest in 2025, estimated at 350.2 million tons, but it exposed the chronic lack of storage capacity in Brazil. Conab estimates the storage deficit at more than 120 million tons highlighting the need immediate action to increase storage capacity.
According to the Systematic Survey of Agricultural Production (LSPA) released by IBGE, Mato Grosso leads the national production of grains with 31.5%, followed by Parana (13.6%), Goias (11.6%), Rio Grande do Sul (9.7%), Mato Grosso do Sul (7.6%), and Minas Gerais (5.5%). Together, these six states account for 79.5% of Brazil's grain production. By region, the Midwest accounts for 51% of the total, followed by the South (25.4%), Southeast (8.9%), Northeast (8.4%), and North (6.3%).
Static storage capacity covers only about 64% of the volume forecast for 2025, so storage infrastructure remains a bottleneck. Part of the solution to this problem is the use of silo bags. These plastic structures allow grain to be stored for up to 24 months, with an initial investment lower than that of metallic silos. Research in neighboring countries such as Argentina and Uruguay, show that up to 60% of the grain production is stored in these types of structures.
According to Pollyanna Penido of Lonax, in addition to storing grain, silo bags can be used for seeds, fertilizers, and animal feed. The material is 100% recyclable and UV-resistant.
Each 60-meter bag costs approximately $700 and has the capacity to store 6,600 bushels of grain. The maximum size is generally 100-meters which could store approximately 11,000 bushels. The cost of the bag is therefore about US$ 0.10 a bushel not counting the equipment to fill and unload the bags. The equipment costs approximately US$ 45,000 and it should pay for itself in 4-5 years.