Management Report 2020

Management Report 2020 Cost of goods sold TABLE 12. COST OF GOODS SOLD (R$'000) Cost of goods sold Cotton lint Cotton seed Soybean Corn Other 2019 2020 HA (1,733,206) (762,874) (61,257) (2,051,786) 18.4% (945,782) 24.0% (644,331) (198,182) (66,562) (98,128) 60.2% (697,641) 8.3% (230,112) 16.1% (80,123) 20.4% TABLE 13. REALIZATION OF FAIR VALUE OF BIOLOGICAL ASSETS (R$'000) Realization of fair value of biological assets Cotton lint Cotton seed Soybean Corn Other SLC Agrícola In 2020, cost of goods sold increased 18.4% in relation to 2019, reflecting the higher vol- umes invoiced and the higher unit costs, mainly due to the Brazilian real depreciation. This increase was partially offset by the higher yields in the 2019/20 crop year com- pared to the 2018/19 crop year. 2019 2020 HA (524,266) (750,996) 43.2% (254,413) (281,368) 10.6% (15,898) (21,114) 32.8% (217,389) (317,382) 46.0% (19,593) (63,591) 224.6% (16,973) (67,541) 297.9% The Realization of Fair Value of Biological As- sets (RFVBA) is the corresponding entry to Variation in Fair Value (calculated upon har- vest) and is recognized as products are in- voiced. In 2020, RFVBA was 43.2% higher than in 2019, due to the higher margin esti- mated upon the recording of fair value of bi- ological assets. 35 55

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