Following three consecutive months of increases and after reaching record levels in June, the average costs of production in Brazil for both chicken meat and pork producers eased in July.
Figures published by CIAS, the Central Intelligence Poultry and Swine with the Brazilian Agricultural Research Corporation (Embrapa), the production costs fell by 7.1 percent and 2.3 percent, respectively, for farmers of broilers and pigs last month.
Broiler production costs
For broilers, the index (ICPFrango) decreased from 242.3 points in June to 225.2 in July. This still represents an increase of almost 12.5 percent so far in 2016, and of just over 25.0 percent over the last 12 months.
Pig production costs
The score for pig production costs (ICPSuíno) stood at 247.9 in July – down from 253.7 the previous month. The index has risen by just over 20.3 percent so far in 2016 and stands almost 33.0 percent higher than at the same point in 2015.
Impact of feed prices
For both species, cheaper corn and soybeans were the main reasons for the reduction in the cost indices. For chickens, total feed costs were down more than 6.7 percent from the previous month, while those for pigs were down by 2.2 percent. Current feeding costs remain significantly higher than at the start of 2016 and one year ago.
The indices of production costs were created in 2011 by socioeconomics team of Embrapa Swine and Poultry and the National Food Supply Agency (Conab). The ICPFrango score represents typical broiler production costs for a ventilated poultry shed in the state of Paraná, while ICPSuíno is based on a typical “full cycle” pig production system in the state of Santa Catarina.
