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Porto Alegre, March 1, 2021 - This year's wheat harvest in Rio Grande do Sul will start with an increase of 21.77% in production costs compared to 2020. This is what the first survey of wheat production costs for 2021 carried out indicates by the Federation of Agricultural Cooperatives of the State of Rio Grande do Sul (FecoAgro/RS). In the entity's assessment, the exchange ratio could be better if values did not increase beyond inflation.
According to FecoAgro/RS, to cover these expenses, including the acquisition of inputs, maintenance of machinery and equipment, fuel, among others, it will be necessary to disburse R$ 3,997.10 for each hectare produced, considering an average productivity of 60 bags per hectare. In other words, the cost of producing a bag is R$ 66.62 per 50-kilo bag and the producer will need to harvest 52.96 bags to pay for all farming costs. In the previous harvest the cost was R$ 3,282.38, representing a cost per bag of R$ 54.71.
According to the economist at FecoAgro/RS, Tarcísio Minetto, among the items that make up the basic costs and that make up farming, inputs and machines are the biggest, in addition to the increases in fuel in recent weeks that should also have an impact. “Despite the cost increases, the exchange ratio improved with the rise in grain prices in general. This scenario appears to be favorable, but in the case of wheat it could be better as costs have increased significantly, with exchange rate variations also being passed on to these costs”, he notes.
For the president of FecoAgro/RS, Paulo Pires, the increase in costs is a concern, as this reduces the producer's results. The director highlights that, even with the increase in costs, the Cooperative Technical Network projects an increase of 10% in the wheat area in Rio Grande do Sul. This means that 1.02 million hectares will be planted this year. “We hope there will be no weather problems and that we can have a record wheat harvest, which is very good for the producer and the economy”, he highlights.
The information is from AgroEffective.
By: Gabriel Nascimento | Crops & Market
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