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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 fash
by leonidasv 3y ago
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.
- PoignardAzur 3y agoThat'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.
- vitorgrs 3y agoIn 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.
- roqi 3y agoThat's interesting. It reads as a central bank of grains.