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He expects final approval to begin construction by the end of this year and predicted completion
in four to five years.
The project, called Ferrogrão – the translation is
literally “Grain Train” – is “very important for the
future of Brazilian agriculture,” Maggi said and
predicted that it would knock between $20 and $30
off the price of a ton of soybeans by reducing
transportation costs.
It’s projects like Ferrogrão and new northern ports that Brazilian Sen. Paulo Rocha of Pará
spur investors to develop more farmland and plant
more soybeans, Maggi said, but he also stressed
passionately that the country would not repeat past
mistakes of trying to increase production through
subsidization.
“About Brazil’s ability to double soybean production – we can do that, but Brazil will not
deteriorate this market,” he said emphatically. “We will rise, but as a function of world demand
… We have to do this smart, knowing that we can significantly increase production, but only if the
market allows. We will not simply increase production because that will decrease prices. We won’t
win. You won’t win. Nobody will win.”
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