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Swine crisis in Mato Grosso makes producers selling below production costs

March 27, 2012

 

The state of Mato Grosso stays under an awkward situation. On the bright side, it has a record on corn production on this crop (the current estimation awaits 11 million tons), but on the other hand, swine culture is getting into a crisis period because the lack of corn.
 
Explaining, corn represents 70% of the pork feed and despite of corn's biggest production in the past two years, crops were sold overseas. The swine sector stop buying feed because of the Russian embargo and it made corn producers selling almost the whole crops out of the state.
 
Now just 40% are left for swine and aviculture feed, what made production costs increase. Nowadays, producers are selling for U$ 0,97 per kilo and they spend U$ 1,11 per kilo growing the pork.
 
Producers want government's help at least to ensure a minimum price for this year, because in 2011 a large part of farmers worked the whole year without any gain.

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