March 15, 2007

Brazil's Ovetril to increase grain storage capacity to 270,000 tonnes
 

Brazilian vegetable oils producer Ovetril will increase its grain crops storage capacity to 270,000 tonnes in mid-April 2007, according to local agricultural news portal Agrolink.

Currently, the company has a capacity to store some 165,000 tonnes of grains.

Ovetril is building four new silos in Sorriso municipality, located in central-western Mato Grosso state. Mato Grosso is one of Brazil's largest agricultural producing states. At present, the company has eight silos.

According to Ovetril executive, Pedro de Moraes Filho, the new units will be used to store corn from the 2006/07 harvest. The company had problems in the previous 2005/06 crop year with corn storage due to low capacity. Thus, corn had to be stored on the ground outside the silos.

Despite the scheduled capacity increase, Moraes Filho expects even bigger similar problems as Brazil is seen to collect a record high 2006/07 corn output. The company noted that it will not accept corn once it fills up its silos.

Brazil is projected to collect 49.2 million tonnes of corn in the 2006/07 harvest, up 16 percent year-on-year.