Limestone Harvest: Early shipment generates savings of up to 30%

In the window in which harvesting and marketing of the 2022/2023 soybean harvest advances, experienced rural producers seek to anticipate the purchase of basic inputs to ensure more affordable shipping. In the so-called limestone harvest, which runs from February to May, demanding shipments in advance generates an advantage in the price of limestone freight, an essential input for soil fertility. Savings reach up to 50% in transportation, reflecting up to 30% in the final calculation of liming costs. 

Orcival Guimarães works directly in the sowing of 50 thousand hectares of soybeans in eight municipalities in Mato Grosso and knows that every dollar makes a difference in the spreadsheets and in the success of the business. One of the tactics adopted in managing the extensive cultivated area is to anticipate shipments of limestone and fertilizer. The producer states that he applies at least 1 ton of limestone per hectare every year. In open areas, this quantity reaches 6 hectares. The mineral needed for liming in more than half of the total area that will be cultivated in the off-season and in the 2023/2024 harvest is already on rural properties. 

"Without limestone there would be no agricultural production in Mato Grosso. Technology has brought new varieties, more productive, more resistant, but it's no use if the land is not well prepared. The farmer has to do his part. And when we get a return shipping, the bill is lighter. Everything is very busy in agriculture, but with organization, the activity is more rewarding", recommends Orcival, who has lived in the State for 45 years. 

Kassiano Riedi, vice-president of Sinecal-MT (Syndicate of Limestone Extraction Industries of the State of Mato Grosso), highlights the positive balance in the relationship between customers and suppliers, promoting the production chain. A ton of input is being sold, on average, at R$120,00 in the State. Freight per ton, on average, exceeds the value of a ton of limestone.  

“Taking advantage of return shipping is extremely interesting to reduce drafting costs. It's a win-win relationship, which will turn the economy around during this period of less traffic on the roads. Those who pull the limestone early get a lot of shipping costs, up to a 50% discount. Transport companies benefit from this demand during the off-season. Limestone industries benefit from loading earlier, relieving concentration a little in certain periods. And the farmer earns even more. It's a virtuous circle", highlights the sector leader. 

The State has more than 40 industrial plants for the extraction of agricultural limestone to meet the high agricultural demand: around 20% of all limestone produced in Brazil comes from Mato Grosso. The busiest months in the segment are July, August and September, when you can easily see queues of trucks. During this period, some units load up to 200 trucks per day. This is what is observed, for example, in Nobres (123 km from Cuiabá), the largest limestone producing hub in Mato Grosso. 

Panorama –In Mato Grosso, the 2022/2023 harvest heralds a new production record. More than 60% of the soybean area has already been harvested. According to the most recent bulletin released by the Mato Grosso Institute of Agricultural Economics, Imea, there are 11,8 million hectares planted, with an estimated average productivity of 59 bags per hectare. The institute observes that the producer's profile has been changing in terms of sales, characterized by the wait for better prices. To date, 45,15% of production has been sold. In the soybean futures market, 2,84% of the oilseed that will still be produced in the 2023/2024 harvest is sold.