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Marfrig money
Alfonso Lima,
on May 19, 2016

Brazil broiler, pig production costs rise again

After a dip for March, the cost of producing broilers and pigs in Brazil rose again in April

Costs of production calculated by CIAS, the Central Intelligence Poultry and Swine with the Brazilian Agricultural Research Corporation (Embrapa) rose by 3.14 percent for broilers and 2.95 percent for swine in April compared to the previous month.

Broiler production costs

For broilers, the index (“ICPFrango”) reached 221.5 points, compared to the base index of 100 points in January of 2010. This is slightly below the peak reached in February of 224.9 but the index dipped to 214.8 the following month. A 3.8 percent rise in feed costs in April accounted for most of the overall monthly increase of 3.1 percent although more expensive transport, equipment, animal health and fuel/water costs also pushed up the index. For 2016 so far, the index has risen 10.4 percent, and it is 24.7 percent higher than 12 months ago.

Pig production costs

Compared to the basal index of 100 in January of 2005, the score for pig production costs (“ICPSuíno”) stood at 224.2 in April, which is a new record. This represents an increase of almost 3 percent from the figure of 217.8 in March. Again, an increase of 2.7 percent in feed costs was the main factor in the increase, although transport, energy and other costs were also slightly higher. The index has risen by 9.9 percent so far in 2016 and stands 24.6 percent higher than at the same point in 2015.

The indices of pig and broiler 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.

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