Brazil's pig and poultry production costs rose significantly in 2020

Brazil's pig and broiler production costs increased for a fifth consecutive month
calendar icon 23 December 2020
clock icon 4 minute read


In November, ICPSuíno reached 387.07 points, + 9.67% in relation to October, and establishing a new nominal record for the index. ICPFrango closed November at 345.57 points, + 5.11% compared to October. It is also the new nominal record for the index created in 2011 by Embrapa and Conab to measure the monthly variation in production costs, writes Lucas Scherer Cardoso, Embrapa Pigs and Poultry.

The increase in ICPSuíno was driven, again, by spending on animal nutrition (which increased 9.44% in October and 45.23% in 2020). In the year, the general cost of pig production has already increased by 50.35% and, in the last 12 months, by 53.61%. The cost per kilogram of live pig produced in a full cycle system in Santa Catarina increased by another R $ 0.60 in the last 30 days, from R $ 6.17 in October to R $ 6.77 in November.

ICPFrango now accumulates a 41.44% increase in 2020 (and 41.43% in the last 12 months). Poultry nutrition (3.64%) was the item that rose the most in the past month. As a result, the cost of producing a kilo of live-cut chicken in Paraná increased from R $ 4.25 in October to R $ 4.47 in November.

The states of Santa Catarina and Paraná are used as a reference in the calculations because they are the largest national producers of pigs and broilers, respectively.

Easy Cost Application -Embrapa recently launched the new version of Custo Fácil. The application brings news for broiler and pork producers that have the application installed on their phones and tablets. It is now possible to edit and delete farms and batch data, in addition to generating dynamic reports of farms, user and database statistics on Embrapa's server. In addition, the reports allow you to separate expenses from family labor costs. The application is available free of charge for installation on Android devices, on Google Play. The new version also shows the producer his position in the ranking and the regional averages of the main economic indicators (gross revenue, total cost, net profit and cash generation) of the farms that declared information through the application or on the internet portal Easy.

Producer costs spreadsheet - Integrated pork and poultry producers can use Embrapa's electronic spreadsheet to manage the farm. It compares the revenue obtained with the production costs, following the farm's cash generation and the impact of the financing provision. The spreadsheet also analyzes the result and presents an estimate of the Internal Rate of Return (IRR) for the investment. It can be downloaded from the CIAS website.

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