Oct 16, 2013
Conab Releases Cost of Production Estimates for 2013/14 in Brazil
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
In Conab's first estimate of the 2013/14 growing season, which was released last week, they also estimated the cost of production for the major crops in Brazil as well. Below is a table summarizing their cost of production estimates.
- Production costs are based on the combined total fixed costs and variable costs.
- These are average costs calculated during July of 2013.
- I made the conversion to dollars per bushel using the exchange rate of 2.25 Brazilian reals per US dollar. Conab only gave the cost per sack of 60 kilograms.
- These are approximate costs based on average yields for the region listed.
- The wide variability in cost is due to the yield potential for the various regions, soil fertility, fertilizer applications, and the cost of transporting the inputs to the various regions.
- These costs do not include the cost of transporting the grain to the local grain elevator or eventually export facilities.
|Cost of Producing Soybeans and Corn in Brazil - 2013/14|
|Soybeans - GMO||Total Cost R$/60 kg||Total Cost US$/bushel|
|Campo Novo do Parecis - western Mato Grosso||45.26||9.14|
|Primavera do Leste - southeastern Mato Grosso||45.46||9.18|
|Sorriso - central Mato Grosso||40.37||8.15|
|Campo Mourao - western Parana||33.31||6.72|
|Londrina - northern Parana||38.03||7.68|
|Passo Fundo - eastern Rio Grande do Sul||47.89||9.67|
|Santa Rosa - northwestern Rio Grande do Sul||43.69||8.82|
|Rio Verde - southern Goias||38.04||7.68|
|Chapadao do Sul - northern Mato Grosso do Sul||45.65||9.22|
|Barreiras - western Bahia||42.58||8.60|
|Brasilia - Federal District||38.96||7.87|
|Balsas - Maranhao||39.20||7.91|
|Averaged across all locations||41.53||8.38|
|Soybeans - Conventional (non GMO)|
|Campo Novo do Parecis - western Mato Grosso||44.26||8.94|
|Primavera do Leste - southeastern Mato Grosso||46.79||9.45|
|Sorriso - central Mato Grosso||40.08||8.09|
|Campo Mourao - western Parana||35.15||7.10|
|Londrina - northern Parana||43.27||8.74|
|Unai - northwestern Minas Gerais||47.48||9.59|
|Averaged across all locations||42.83||8.65|
|Corn - Full Season|
|Primavera do Leste - southeastern Mato Grosso||26.33||5.08|
|Campo Mourao - western Parana||26.98||5.21|
|Londrina - northern Parana||22.46||4.34|
|Passo Fundo - eastern Rio Grande do Sul||22.18||4.28|
|Chapadao do Sul - northern Mato Grosso do Sul||17.48||3.37|
|Barreiras - western Bahia||22.26||4.30|
|Balsas - Maranhao||19.33||3.73|
|Unai - northwestern Minas Gerais||25.58||4.94|
|Averaged across all locations||22.82||4.40|
|Corn - Safrinha|
|Campo Novo do Parecis - western Mato Grosso||18.04||3.48|
|Campo Verde - southern Mato Grosso||18.92||3.65|
|Sorriso - central Mato Grosso||20.15||3.89|
|Vera - central Mato Grosso||20.91||4.04|
|Campo Mourao - western Parana||31.61||6.10|
|Londrina - northern Parana||24.64||4.76|
|Ubirata - western Parana||24.48||4.73|
|Rio Verde - southern Goias||27.35||5.28|
|Chapadao do Sul - northern Mato Grosso do Sul||24.49||4.73|
|Averaged across all locations||23.39||4.51|
Source: Conab's first estimate of the 2013/14 growing season -CCf October 2013