Impact of agricultural expansion on the demand for storage units and its relationship with soybean and maize production in the micro-regions of the state of Tocantins

Abstract

The State of Tocantins stands out as the largest grain producer in Brazil's Northern Region, particularly of soya and maize, and is emerging as a new agricultural hub in the country owing to its significant potential for crop area expansion. However, the static storage capacity has not kept pace with the increase in production, leading to a growing annual deficit. This study aimed to analyse the impact of the growth in soya and maize production in Tocantins on the demand for storage infrastructure. To this end, existing storage units were mapped and their geographical distribution across the state's micro-regions was assessed, in order to understand the logistical challenges and identify gaps between agricultural expansion and the available infrastructure. A mixed-methods approach, both qualitative and quantitative, was adopted. The qualitative research addressed the dynamics of agribusiness and the role of grain storage units, whilst the quantitative analysis compared static capacity data with cultivation expansion. The data show that, from 2005 onwards, soya and maize production in Tocantins has surpassed the static storage capacity. As a result, it became evident that investment in infrastructure has not matched the significant expansion in production. It is concluded that only one of the state's eight micro-regions possesses a storage capacity greater than its soya and maize output.