Feedlot costs in Brazil showed a divergent pattern in March, rising 11.9% in the Center-West to R$ 13.23 per head per day, while in the Southeast they fell 3.6% to R$ 12.19, according to the ICAP indicator from Ponta Agro.
The increase in the Center-West was driven by higher prices for energy inputs and forages, amid the transition between the summer crop and the safrinha. In contrast, in the Southeast, greater availability of co-products helped ease costs, despite higher forages prices.
In terms of results, the cost per arroba produced was estimated at R$ 192.76 in the Center-West and R$ 193.50 in the Southeast, with very similar margins between regions, creating a “technical tie” in competitiveness.
According to Ponta Agro, this shift raises questions as to whether it reflects a seasonal adjustment or the beginning of a new regional dynamic, depending on how the safrinha corn crop evolves in the coming months. Source: Globo Rural.
