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High corn prices in full harvest squeeze poultry and hog farmers

The summer corn harvest in Brazil is moving forwards but has not managed to bring down prices in Brazil, squeezing poultry and pork farmers who rely on grain for feed.

In mid-January corn prices peaked, driven by strong exports and the dollar, and since then they have not fallen.

"The price has not fallen at all, even with the corn crop being taken in in southern Brazil," said the market relations adviser at the Brazilian Hog Farmers Association, Valdecir Folador. He says input costs -- corn being the most important-- are well above the prices achieved for animals.

In Rio Grande do Sul, where he works, Folder estimates that the cost of pork production is at R$ 3.80 per kilo, compared to a net return of R$ 2.80.

"For poultry and hog sit is very hard. Here in the west of Santa Catarina the corn crop is already sold out," said the purchasing director at cooperative Aurora, Jacó Ritter, responsible for origination at one of the largest pork and poultry producer in Brazil, with consumption of nearly 1.4 million tons of corn per year.

Information provided by Reuters and adapted by Informa Economics FNP
 

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