Brazilian grain exporters lobby Anec on Thursday warned it was concerned about a rise in farmer bankruptcy filings in the country, adding a recent increase in cases potentially compromises the execution of grain contracts.
The rise in farmer bankruptcy cases, which may affect delivery of committed grains throughout the season, may also hamper traders’ ability to complete their export programs, Anec said.
Farmer groups, including Aprosoja-Mato Grosso and Aprosoja Brasil, did not have an immediate comment.
“Anec views with great concern the growth in the number of requests of judicial recovery,” the statement said. “Farmers have been offered – indiscriminately and often maliciously – the judicial recovery procedure as a means of renegotiation of debts and contracts,” Anec said referring to loans and also soy and corn contracts.