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