Pork production cost in Brazil falls, chicken steady

Average costs of production for Brazilian pig producers have declined for the fourth successive month, according to CIAS, the Central Intelligence Poultry and Swine with the Brazilian Agricultural Research Corporation (Embrapa). For broilers, the index increased in October, but only marginally.

Alfonso Lima, Freeimages.com
Alfonso Lima, Freeimages.com

Average costs of production for Brazilian pig producers have declined for the fourth successive month, according to CIAS, the Central Intelligence Poultry and Swine with the Brazilian Agricultural Research Corporation (Embrapa). For broilers, the index increased in October, but only marginally.

Feed costs nudge up broiler production index

For broilers, the index (“ICPFrango”) increased from 211.5 in September to 211.7 in October, following a three-month period of significant reductions from the peak of 242.3 in June of this year. Despite these falls, the index in October represents an increase in total costs of 6.4 percent so far in 2016, and of just over 4.2 percent for the last 12 months.

The majority of the cost categories remained unchanged from the previous month but feed was 0.04 percent more expensive in October than in September.

Pig production costs fall for fifth successive month

The decline in the score for pig production costs (“ICPSuíno”) has continued since its peak in June (253.7), reaching 223.2 in October. The index is down 2.9 percent from September but it remains just over 10.0 percent above the start of 2016 and almost 9.0 percent higher than the figure of 12 months previously.

A 3.1 percent reduction in feed costs is the main factor impacting the downward movement of the pig production cost index in October although health costs were also down by just over 0.2 percent. Despite the latest monthly fall, pig feeding costs were almost 10 percent higher than at the start of 2016.

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.

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