Cotton production cost is higher in Mato Grosso


Image: Pixabay



Cotton sowing in Mato Grosso is coming to an end. According to the Mato-Grossense Institute of Agricultural Economics (Imea), until last Friday (19), it reached 95.45% of the planned areas. The delay in planting is still a point of attention this week, as field work had already been completed in the same period last year.

What is also worrying is the higher production cost for the 21/22 harvest. In January the total effective operating cost (TOC) increased by R$ 290.53/ha for the month, estimated at R$ 12,200/ha. Imea estimates that this increase is linked to the increase in the prices of fertilizers and correctives (+3.53%) and pesticides (+1.20%), inputs quoted in dollars.

Furthermore, producers who use seeds as a form of payment to benefit their production will see an increase in expenses with classification and processing (+3,69%) in the monthly comparison. “In order for the cotton farmer to be able to cover his cost (COT), he must sell his plume at an average of R$ 104.72/@. On the other hand, the producer has so far managed to balance the “accounts”, due to attractive future prices and strong demand, which consequently increases revenue”, says the bulletin. 

In the 2020/21 harvest, the TOC was R$ 10,091/ha and in the 2019/20 harvest, R$ 9,088/ha. In the two previous harvests, pesticides and fertilizers were also those that weighed most on the price.

By: Eliza Maliszewski | agrolink

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