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October 16, 2013

Conab Releases Cost of Production Estimates for 2013/14 in Brazil

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 - GMOTotal Cost R$/60 kgTotal Cost US$/bushel
Campo Novo do Parecis - western Mato Grosso45.269.14
Primavera do Leste - southeastern Mato Grosso 45.469.18
Sorriso - central Mato Grosso40.378.15
Campo Mourao - western Parana33.316.72
Londrina - northern Parana38.037.68
Passo Fundo - eastern Rio Grande do Sul 47.899.67
Santa Rosa - northwestern Rio Grande do Sul43.698.82
Rio Verde - southern Goias38.047.68
Chapadao do Sul - northern Mato Grosso do Sul45.659.22
Barreiras - western Bahia42.588.60
Brasilia - Federal District38.967.87
Balsas - Maranhao39.207.91
Averaged across all locations41.538.38
 
Soybeans - Conventional (non GMO)
Campo Novo do Parecis - western Mato Grosso 44.268.94
Primavera do Leste - southeastern Mato Grosso46.799.45
Sorriso - central Mato Grosso40.088.09
Campo Mourao - western Parana35.157.10
Londrina - northern Parana 43.278.74
Unai - northwestern Minas Gerais47.489.59
Averaged across all locations42.838.65
 
Corn - Full Season
Primavera do Leste - southeastern Mato Grosso26.335.08
Campo Mourao - western Parana26.985.21
Londrina - northern Parana22.464.34
Passo Fundo - eastern Rio Grande do Sul22.184.28
Chapadao do Sul - northern Mato Grosso do Sul17.483.37
Barreiras - western Bahia22.264.30
Balsas - Maranhao19.333.73
Unai - northwestern Minas Gerais25.584.94
Averaged across all locations22.824.40
 
Corn - Safrinha
Campo Novo do Parecis - western Mato Grosso18.043.48
Campo Verde - southern Mato Grosso 18.923.65
Sorriso - central Mato Grosso20.153.89
Vera - central Mato Grosso20.914.04
Campo Mourao - western Parana31.616.10
Londrina - northern Parana 24.644.76
Ubirata - western Parana24.484.73
Rio Verde - southern Goias27.355.28
Chapadao do Sul - northern Mato Grosso do Sul24.494.73
Averaged across all locations23.394.51

Source: Conab's first estimate of the 2013/14 growing season -CCf October 2013