Conab builds up wheat stocks again after 11 years

Approximately 7,2 thousand tons of wheat were purchased by the National Supply Company (Conab) from producers in Rio Grande do Sul. The purchase was made through the Federal Government Acquisition Mechanism (AGF), provided for in the Minimum Price Guarantee Policy (PGPM), launched last year as a way to guarantee a minimum price to farmers in Rio Grande do Sul, when the price of the grain was below the minimum price established by the Federal Government. A total of R$11,78 million is being invested, of which R$9,97 million will be in acquisitions, including ICMS, and R$1,8 million in removal. 

The grain is acquired at the purchasing center opened by the Company at Cotripal Agropecuária Cooperativa, located in the Rio Grande do Sul municipality of Pejuçara. Immediately after acquisition, the cereal is transported by the state-owned company to the Company's storage unit in Ponta Grossa, Paraná. An average of 15 trucks leave the Rio Grande do Sul municipality per day. Technicians from the superintendencies of the Operational Logistics Company, the Inspection Company, in Rio Grande do Sul and Paraná directly monitor the work. The operation is expected to be completed by the end of this month.

The supply of cereals on the international market has been reflected in downward pressure on product prices in recent harvests. For the product harvested in the 2023/2024 season, the federal government launched instruments to support marketing through public auctions of Pepro and PEP, as a way to assist producers. With these operations, the government supported the flow of approximately 479,28 thousand tons of cereals. For the 2024/25 cycle, the measure adopted was the AGF serving producers in Rio Grande do Sul, where prices remained below the current minimum price.

New acquisitions 

Aware of market scenarios, the Federal Government does not rule out making new acquisitions of food products in order to reinforce the country's public stocks. Conab continues to monitor the prices of the main products covered by the PGPM, as well as the domestic and international market outlook in order to ensure a minimum remuneration for producers, acting as a benchmark for food supply, encouraging or discouraging production and ensuring the regularity of national supply. 

Federal Government Acquisition (AGF)

An instrument of the PGPM, the AGF aims to support rural producers, family farmers and their cooperatives through the acquisition of products when the market price is lower than the minimum price established for the current harvest. The acquisition depends on the transfer, by the National Treasury, of the resources necessary to operationalize the acquisitions.