Brasília, 2/20/2004 (Agência Brasil - ABr) - The president of the National Supply Company (Companhia Nacional de Abastecimento) (Conab), Luís Carlos Guedes, reports that Brazil must increase its grain storage space. He says the R$500 million earmarked in Development Bank funds this year is not sufficient.

Guedes points out that every thousand tons of grains cost US$70 to US$80 to store. "Our capacity has practically not increased in a decade. As a result we have storage capacity for 94 million tons, with a harvest about to reach 130 million tons," he says, adding that the only reason the problem is not more serious is because the country's biggest crop, soybeans, is shipped directly to market immediately. (AB)|