Logistical Bottlenecks Threaten Competitiveness of Brazilian Agribusiness

May 14, 2025

The deterioration of Brazil's port infrastructure has become a critical obstacle for the agribusiness sector, directly impacting key supply chains of major industries. Credit: MTM Logix
The deterioration of Brazil's port infrastructure has become a critical obstacle for the agribusiness sector, directly impacting key supply chains of major industries. Credit: MTM Logix

The deterioration of Brazil's port infrastructure has become a critical obstacle for the agribusiness sector, directly impacting key supply chains of major industries, such as coffee, among other commodities. 

According to Mario Veraldo, CEO of global logistics company MTM Logix, the issues are no longer isolated incidents—they’ve become systemic. “Brazilian ports are operating at full capacity—outdated equipment, lack of maintenance, and underinvestment have created an unsustainable situation,” said the CEO.

According to Veraldo, Brazil invested only 2.2% of its GDP in infrastructure in 2024, when nearly double that—around 4.3%—would be required to meet projected demand over the next three decades. This shortfall comes at a time when agribusiness exports are booming, reaching $164.4 billion last year—nearly half (48.9%) of the country’s total exports.

In March 2025, Brazil failed to ship 637,767 bags of coffee—equivalent to approximately 1,932 containers—due to logistical bottlenecks. This resulted in a loss of around USD$1.568 million, according to the Brazilian Coffee Exporters Council (Cecafé). Since June 2024, inefficiencies at major coffee-exporting ports have led to an additional USD$11.72 million in extra costs. The failure to ship this volume also meant Brazil missed out on USD$265 milion in foreign exchange revenue for March alone.

The Detention Zero Bulletin (DTZ), published by startup ElloX Digital, reported that 55% of vessels—179 out of 325—experienced delays or had their schedules altered at Brazil’s main ports in March 2025. The average container dwell time can exceed 40 hours and, in some cases—particularly at the Port of Santos—reach up to 10 days. Veraldo explains that the current installed capacity of 234 million tons will not meet the projected demand of 238.9 million tons by 2028.

“There is an urgent need to expand and modernize Brazil’s ports, streamline bureaucratic processes, and invest in technology and alternative logistics solutions—such as the Northern Arc ports, which are emerging as strategic routes for exporting Brazilian agricultural products,” Veraldo emphasized.

At the production end of the chain, the consequences are being felt directly by growers. Rodrigo Reis, Logistics Manager at the Cerrado Coffee Growers Cooperative (Expocacer), says the bottlenecks are impacting everything from operational planning to the income of cooperative members. “These added operational costs could be used to increase the value of the coffee. Instead, we are spending with infrastructure failures,” he says.

Reis explains that Expocacer takes a proactive approach, using early-stage logistics planning and carefully selecting shipping lines. Still, the cooperative faces recurring issues like container shortages, sudden changes to vessel deadlines, and high toll costs on single-lane highways.

To mitigate these losses, the cooperative has strengthened its institutional engagement. Expocacer actively participates in Cecafé’s Logistics Committees and monitors guidelines from Brazil’s National Waterway Transport Agency (ANTAQ), aiming for stronger representation with regulatory authorities. Internally, they also have established a department dedicated to audit port charges, which has helped reverse unwarranted fees and reduce the financial burden on producers.

“Brazil urgently needs to rethink its logistics strategy. It’s no use promoting our coffee abroad if we can’t ship it reliably and cost-effectively. We’re still operating with infrastructure that’s stuck in the past, while export volumes grow year after year. The math just doesn’t add up,” Reis concluded.

According to MTM Logix, this situation calls for coordinated action among the government, private sector, and producers. Without it, Brazil risks losing its global competitiveness to a logistics system that can no longer keep up with its potential.
Additionally, digital integration between carriers, shipping lines, port operators, and regulatory agencies enables smoother communication and more effective decision-making.

Logistics News

Logistical Bottlenecks Threaten Competitiveness of Brazilian Agribusiness

Logistical Bottlenecks Threaten Competitiveness of Brazilian Agribusiness

Africa Global Logistics to Invest in Inland Logistics

Africa Global Logistics to Invest in Inland Logistics

Hapag-Lloyd Freight Demand Boosted by US-China Trade Truce

Hapag-Lloyd Freight Demand Boosted by US-China Trade Truce

Edison Receives First Delivery of US LNG From Venture Global

Edison Receives First Delivery of US LNG From Venture Global

Subscribe for Maritime Logistics Professional E‑News

South Korea's NOFI offers up to 60,000 tons of soymeal
MSCI's May revision includes India's Coromandel and Nykaa in the key index
Sources: TenneT is in talks to sell a stake of up to 13 billion dollars in its German unit to funds.