Poultry, pig production costs fall for Brazil farmers

There was a reduction in average costs of production for Brazilian poultry and pig producers in November, according to CIAS, the Central Intelligence Poultry and Swine with the Brazilian Agricultural Research Corporation (Embrapa).

LuisaLeal Photography, Bigstock
LuisaLeal Photography, Bigstock

There was a reduction in average costs of production for Brazilian poultry and pig producers in November, according to CIAS, the Central Intelligence Poultry and Swine with the Brazilian Agricultural Research Corporation (Embrapa).

Falling feed costs help reduce broiler index

A decline of 0.66 percent is the main reason for a decline of 0.42 percent in the broiler production cost index (ICPFrango), which stood at a little over 210.8 for November 2016. Daily costs were slightly higher than in the previous month, but there were no changes in other cost categories.

Despite the November fall, the index was almost 6.0 percent higher than at the start of the year, and 4.8 percent above the level of 12 months previously.

The peak level in 2016 was reached in June, when the index stood at a little over 242.3.

Decline in pig production costs continues

For pig production costs, the index (“ICPSuíno”) has fallen each month since its 2016 peak in June at 253.7. It declined from almost 229.8 in October to just over 223.2 in November, a reduction of more than 2.8 percent.

Like was the case with poultry, the main factor contributing to the reduction in the pig index was 3.1 percent lower feeding costs. Veterinary costs also fell slightly compared with October, while capital costs rose by just over 0.5 percent.

Although November’s decline in overall costs of pig production will be welcomed by Brazilian producers, the index was more than 10.0 percent higher than at the start of 2016, and almost 9.0 percent above the level in November 2015.

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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