Investor Presentaiton
THE YEAR OF
RESILIENCE
The year of 2021 was a challenging period for the sector. It would be fair to
call it "the year of resilience". Shaken by the global economic crisis triggered
by the onset of the pandemic in 2020, poultry and pig farmers as well as
agribusinesses throughout Brazil did not spare any efforts to keep their
operations running.
Faced with a delicate economic environment, our producers not only had
to adapt to the new pandemic scenario, but they were also challenged by
historical price spikes of inputs, which severely affected their production costs
and competitive edge.
(R$/ 60kg bale)
2015
2016
2017
2018
2019
2020
2021
PPPPP
Corn
Soybean
29.05
68.34
44.48
77.43
30.47
66.20
38.49
78.55
39.40
76.79
58.69
115.86
91.83
165.60
The price of corn and soybean meal, which together
account for approximately 70% of farm expenses,
reached levels never before witnessed in Brazil. On
average, from 2015 to 2021, the price of soy has
increased more than 140%. Corn, in turn, showed an
even higher leap, exceeding 200%.
Unfortunately, not only the prices of inputs needed
for animal nutrition have risen. Climbing costs for
rigid and flexible packaging and fuel have also
heavily penalized producers, who sometimes had to
cope with negative margins in their production.
Amidst the uncertainties that affected domestic
production, the export sector was also put to the test.
Initially, during the critical period of the pandemic,
the pace of global trade became sluggish.
Then, with the subsequent and gradual resumption
of business after the lockdown measures, the
reopening of global economies generated an
unprecedented worldwide imbalance between the
supply and demand of ship containers. Cargo ships
were redirected to higher demand routes - which
do not include Brazil - and this mismatch resulted
in skyrocketing maritime freight prices, which more
than tripled over this period.
However, even amidst so much hardship, our
producers, upholding food security, persevered
in their honorable commitment to feed Brazil
and the world!
Cepea/Esalq Soy Indicator - Paraná | Corn Indicator Esalq/Bm&Fbovespa
Source: CEPEA
Brazilian Association of Animal Protein - ABPA
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