Brazil Sees Rise in Poultry and Pig Production Costs

In Brazil, production costs for broiler chickens and pigs have recently increased.

The Broiler Chicken Production Cost Index (ICPFrango) grew by 1.03% in October, ending a seven-month trend of decreases. This index stood at 330.18 points.

These findings come from the Brazilian Agricultural Research Corporation (Embrapa) Swine and Poultry’s Central Intelligence of Poultry and Swine (Cias).

The Swine Production Cost Index (ICPSuíno) also rose by 2.59% and reached 336.16 points in October. This marks its first increase since July.

Embrapa attributes the ICPFrango’s October rise mainly to a 1.83% hike in animal feed costs, which make up 67.35% of total production costs.

In Paraná, the cost to produce one kilogram of live broiler chicken reached R$ 4.27 in October, showing a R$ 0.05 increase from September.

Despite this rise, the ICPFrango has seen a 22.95% decrease over the year.

Embrapa highlights that changes in technical coefficients in January 2023 contributed to a 7.1 percentage point reduction in these figures.

For ICPSuíno, the primary factor driving the increase was also animal feed, which rose by 3.19%. This component accounts for 73.51% of the total production cost.

The ICPSuíno shows a 27.22% decrease since January and a 25.17% drop over the last 12 months.

Consequently, the total cost to produce one kilogram of live pig in Santa Catarina was R$ 5.88 in August, up R$ 0.15 from September.

The January 2023 coefficient changes led to a 16.2 percentage point reduction in the ICPSuíno, with prices influencing the remaining variation.

Santa Catarina and Paraná are key references in CIAS’s calculations due to their leading production of pigs and broiler chickens.

Cias has expanded production cost data for pigs to three additional states: Goiás, Mato Grosso, and Minas Gerais.

In Goiás, production cost data covers the first two quarters of this year.

In Mato Grosso, cost information is available from the first quarter of 2019 to the first quarter of 2023. Minas Gerais will soon have production cost data published.

Embrapa updated technical coefficients for broiler chickens and pigs in early 2023. This adjustment affects production cost estimates and related indices.

The Custo Fácil App, available for Android, now enables dynamic reporting for farms, separating family labor expenses from other costs.

Additionally, integrated producers can use the free Producer Cost Spreadsheet from the Cias website for farm management.