The Olympics in Rio de Janeiro are underway with world-record performances and gold-medal repeats.
But as the Olympics race ahead, Brazil’s agribusiness industry is slowing down.
Multinational agribusiness powerhouses Cargill Inc. and Louis Dreyfus Co. are among a group of companies that have at least partially stalled their soybean processing operations in Brazil, according to Bloomberg.
Even a small dip to the South American country’s soy operations can be costly, as Brazil is currently the world’s biggest soybean exporter.
“Oilseed processors are looking for better results in the coming months and choosing to freeze production now,” said Debora Pereira da Silva, an analyst at the University of Sao Paulo’s Cepea research arm, in an interview with Bloomberg.
Cargill and Louis Dreyfus have halted operations because of domestic soybean shortages caused by drought and vanishing profit margins, according to Bloomberg. The weakened state of Brazil’s chicken industry, which depends on crushed soybeans for feed, has also contributed to scaled-back output.