Rise in Cost of Pig Production in June

by 5m Editor
1 August 2012, at 9:15am

BRAZIL - The cost index of Swine Production increased 1.08 per cent in June, reaching 149.07 points. Despite the increase, the variation was lower than that recorded in May (4.43 per cent).

The increase in the index was caused by rising prices of soybean meal. In 2012, the costs of animal nutrition has risen by 11.82 per cent. Nutrition represents almost as much as 78 per cent of the cost of pig production.

Irenaeus researcher Jonas dos Santos Filho from Embrapa said that due to the rise in corn and soybean prices in the US, coupled with problems of supply of corn and soybean meal in Southern Brazil, there has been an increase in prices paid by farmers for the two commodities. "This increases the need to adjust the supply of pigs in order to guarantee an equilibrium price for the sector. Truly the light is red," he said.