Infrastructural Bottlenecks Squeeze Brazilian Cotton Expansion

Ninety-nine percent of cotton exports are currently moving through the Port of Santos, located some 2,000 km away from the key production regions. With export capacity almost exhausted, Rabobank sees investment in new routes for cotton exports and the development of infrastructure within farms as critical for future growth.

According to Victor Ikeda, senior grains & oilseeds analyst, “In order to reach this production growth and export potential, investments need to take place mainly in the development of existing export capacity, ‘new’ export corridors, and ginning capacity.”