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0 pointsleonidasv3y ago0 comments

Brazil government runs a company called Conab that acts as a "buffer stock" for grains. It buys, stores and sells grains in large quantities in a continuos fashion, so the government can soften market fluctuations for those commodities over time.

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3 comments · 2 top-level

PoignardAzur3y ago· 1 in thread

That's fascinating. I've wondered for a while whether governments did that. Seems like a common sense precaution for preserving your country's food security.

vitorgrs3y ago

In the latest 5-6 years the stock was basically zero-d. And the previous government even wanted to close CONAB. Now I believe they will return to stock commodity and stuff again, but there's a lot of pressure from agrobusiness to not stock again.

One of reason why food inflation in Brazil rise in the latest years is exactly because of CONAB stopped stocking it.

Even milk and peanut they stocked before.

roqi3y ago

That's interesting. It reads as a central bank of grains.

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