Management Report 2020 slide image

Management Report 2020

Management Report 2020 Actual cost of production SLC Agrícola TABLE 6. ESTIMATED PRODUCTION COST PER CROP, 2020/21 CROP YEAR % Variable costs Seeds Fertilizers Chemicals Cotton Soybean Corn 20/21 Average 19/20 Average 83.1 77.5 81.8 80.8 79.5 9.8 14.7 18.2 12.4 12.1 21.3 21.3 36.4 22.5 22.1 28.6 24.3 14.5 25.3 23.8 Aerial spraying 1.6 1.0 1.5 1.4 1.7 Fuels and lubrificants 2.9 3.3 3.0 3.0 3.6 Labor 0.9 0.7 0.4 0.6 0.6 Processing 8.3 2.6 2.4 5.8 6.2 Maintenance of machines and implements 3.5 4.3 3.2 3.7 4.1 6.2 5.3 2.2 6.1 5.3 Fixed costs Labor 16.9 22.5 18.2 19.2 20.5 7.3 9.3 7.4 8.0 8.1 Depreciation and amortization 4.5 6.2 4.5 5.1 4.8 Amortization of the right of use - Leases 3.1 4.5 4.3 3.8 5.1 Other 2.0 2.5 2.0 2.3 2.5 TABLE 7. ACTUAL (2019/20) AND ESTIMATED (2020/21) PRODUCTION COST Total (R$/ha) Cotton 1st crop Cotton 2nd crop 2019/2020¹ Actual 2020/2021 Estimated HA 9,362 9,899 5.7% 8,264 9,306 12.6% Soybean 3,015 3,300 9.5% Corn 2nd crop 2,545 2,858 12.3% Custo médio total² 4,735 5,168 9.1% The costs per hectare estimated for the 2020/21 crop year reg- istered an average increase in Brazilian real of 9.1% compared to the actual costs in the 2019/20 crop year, basically due to the depreciation of the Brazilian real against the U.S. dollar in the period, since ap- proximately 60% of costs are denominated in the currency. Other 9,1% average increase in costs per hectare, driven by the increase in the exchange rate between the 2019/2020 and 2020/2021 crops 1. Values may change until the end of the cotton processing and the commercialization of the grains. 2. Weighted by areas of the 2019/2020 Crop Year to avoid changes arising from variations in the product mix. 32 32
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