Brazil Holds Lowest Swine Production Cost Among 17 Countries
Brazil leads in low pig production costs among 17 countries, with data sourced from Mato Grosso and Santa Catarina states.
In Mato Grosso, 2022’s cost was $1.13 for each kilogram of pig. In Santa Catarina, it was $1.28.
Even with 10% and 12% rises in these states since 2021, costs are low. For comparison, the USA’s cost is $1.42 per kilogram.
Countries like Denmark, Spain, and Germany have even higher costs. The average cost in the InterPIG network is $1.72 per kilogram.
Global pig production costs went up in 2022. This information is from the InterPIG network, which includes 17 pork-producing countries. They discussed these numbers at their yearly meeting.
However, Brazil had the lowest selling prices. Mato Grosso sold at $1.06 per kilogram and Santa Catarina at $1.10. In the USA, the average was $1.58.
Marcelo Miele from Embrapa explained the data. He said it shows Brazil’s strength compared to other countries.
Most countries had higher production costs in 2022. Prices for pigs rose, but not as much as the costs.
Higher corn and soybean meal prices caused the cost rise in 2022. Weather and events like the Ukraine conflict played roles in this.
Besides, worldwide inflation changed many prices. These included electricity, medicines, and building costs. Wages and interest rates also changed.
Brazil’s Export Future Looks Bright
In 2023, feed prices might drop, and other costs might stay the same. So, Brazil may have more export chances next year.
Now, Brazil is fourth in the global pork market. But it might become third if it exports more than Canada. If this happens, pork producers in Brazil will earn more.
Why are Brazil’s costs lower? It’s due to efficient methods and good prices. Brazil uses modern technology and keeps its pigs healthy. This means they spend less but produce more.
Another reason is low labor costs. In 2022, workers in Brazil earned about $3 per hour. In Spain, it was $16.29.
But the main reason is cheap animal food. Mato Grosso spent only $0.87 to feed a kilogram of pig. They use food efficiently and buy it at low prices.
Santa Catarina’s cost was $1.02. They also use food efficiently but buy it at a higher price. Denmark and the USA spent more, with costs of $0.96 and $1.03 per kilogram.
For more details, readers can visit Embrapa’s website. They will release a detailed report later this year.
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