Brazil’s poultry production costs reach record high

The cost of poultry production in Brazil reached a record high in September, according to CIAS, a division of the Brazilian Agricultural Research Organization, Embrapa. For the first time since its creation, the ICPFrango index exceeded 190 points.
For the month of September the ICPFrango index registered 191.97 points, almost double the 2010 reference of 100, and continuing the upward trend seen throughout this year.
CIAS notes that the index for the month was 7.11 percent higher than for August, and has risen by 9.62 percent so far this year. Over the last 12 months, the ICPFrango index has increased by 21.02 percent.
Over the last year, almost all of the input costs used to calculate the index have risen. The highest costs have been recorded for feed, up by 16.7 percent, followed by day old chick prices, which are 2.36 percent higher than 12 months ago. Labor and health costs, however, have fallen over the period.
There may, however, be some relief in sight for Brazil’s poultry producers as, while feed, which accounted for almost 68 percent of costs, and equipment prices continued to rise in September, all other input costs used to compile the index were either stable or fell. Additionally, demand for poultry meat is expected to remain strong.
A similar situation has occurred in pig production, with the sector also recording record high production costs during September and over the last 12 months. However, the increase in input costs, while still in double, figures, has not been as high as for poultry producers.