Cargill, which is the second-largest handler of soya beans in Brazil, believes that the new port concession model adopted by the government will discourage the export of soya bean meal and soya bean oil, both products that add value to basic soya bean exports. It believes that changes to legislation only favour the creation of export grain terminals.
According to Paulo Sousa, Cargill's director of grain and soya processing in Brazil, the new concession model favours companies handing the highest amount of cargo at the lowest price, which he believes will leave commodities such as bran, which is lighter than grain, at a disadvantage, because a belt loader can handle twice as much grain as bran in the same period of time.
“Ports moving bran will have less yield,” he said.
Cargill is faced with having to reapply for the concession to operate the terminal that it is managed for almost 40 years at the port of Paranaguá. However, Sousa remains confident that the company will be successful in its re-bid, since the amended legislation definitely favours companies handling large volumes, which is the case with Cargill.