Pork production costs lowest in Brazil - Embrapa

The study includes data from the states of Mato Grosso and Santa Catarina. In Mato Grosso, the cost of production in 2022 was US $1.13 per kilogram of live pig, and in Santa Catarina it was US$1.28. Despite increases of 10% and 12% in the two states respectively compared to 2021, these values ​​are still lower than the US ($1.42 per kilogram of live MEAT), Denmark ($1.49), Spain ($1.66), the Netherlands ($1.74) and Germany ($1.83). The average for countries included in the InterPIG network is US$1.72 per kilogram. Statistics on average production costs in CHINA were not included.

Global pork production costs increased significantly in 2022. Data provided by the Pig Production Cost Comparison Group (InterPIG network), which brings together institutions from 17 pork-producing countries, including Brazil, represented by Embrapa. The figures were presented this year during a group meeting.

“The main purpose of information disclosure is to convey information to agents in the value chain in Brazil about the degree of competitiveness of its main competitors,” says Embrapa Suínos e Aves (SC) socio-economics researcher Marcelo. Mile. He points out that all countries saw significant increases in production costs in 2022 and while pig   prices also increased, in most countries the increases were lower than the increases in costs, resulting in losses in the pig industry.

The researcher explains that the overall increase in production costs in 2022 was mainly due to the prices of corn and soybean meal. Animal feed consumption has been impacted by both climate and geopolitical events, such as the Ukrainian crisis , which has led to higher fertilizer prices and reduced global grain supplies. “In addition, there is global inflation in prices (electricity, vaccines, medicines and construction), wages and its impact on interest rates,” Miele adds.