Cheaper feed for Brazil broiler, pig sectors in January

Brazilian poultry and pig producers saw a continuation in the decline in production costs for the first month of 2017.

jshinsky | pixabay.com
jshinsky | pixabay.com

Brazilian poultry and pig producers saw a continuation in the decline in production costs for the first month of 2017.

Based on calculations by CIAS, the Central Intelligence Poultry and Swine with the Brazilian Agricultural Research Corporation (Embrapa), average costs for broiler and pig farmers fell by 3.5 and 3.7 percent, respectively, for January 2017 compared with the month before.

Broiler cost index down by 3.5 percent in January

In the first month of 2017, the broiler production cost index (ICPFrango) stood at 202.3, a marked reduction from 209.7 in December 2016.

The main factor in the fall is a reduction in feeding costs of almost 3.8 percent compared with the previous month. However, labor and energy were both slightly more expensive for Brazilian broiler producers than in December.

The index was almost 6.1 percent lower in January 2017 than the same month the previous year, mainly due to feed costs, which were down by 5.2 percent.

Pig feed costs down by 5 percent in January

For pig producers, the average cost index (ICPSuĂ­no) has fallen each month since June, and was calculated at 211.5 for January 2017. That is more than 3.7 percent below the index for the previous month.

As with poultry, cheaper feed was the main factor leading to the fall in the index, but this category was down by as much as 5.0 percent for pig producers. Acting as a counterbalance, costs of transport and labor were higher than in December.

Overall, the costs of pig production were 1.5 percent lower in January 2017 than 12 months previously.

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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