Management Report 2020 slide image

Management Report 2020

Management Report 2020 SLC Agrícola Second-crop cotton | Second-crop cotton also was affected by water scarcity during the crop's planting and the cotton-ball development phase, manly in the region of Mato Grosso state. The final yield was 1,705 kg/ha of cotton lint, 2.5% lower than the projected volume and 5.7% higher than yield registered in 2018/19 crop year. Second-crop corn | Second-crop corn ended the period with a yield 3.0% higher than in 2018/19 crop year and 0.7% lower than the projected rate, of 7,333 kg/ha. Compared to the national average, the yield was up 34.4% (Feb/2021 estimate from CONAB). TABLE 2. ACTUAL YIELDS, 2018/19 vs. 2019/20 A. B. Yields (kg/ha) 2018/2019 Crop Year (actual) 2019/2020 Crop Year (estimated) 2019/2020 HA HA HA Crope Year (C/A) (B/A) (C/B) (actual) 1,688 1,842 1,779 5.4% 9.1% -3.4% 1,613 1,749 1,705 5.7% 8.4% -2.5% Cotton seed 2,090 2,261 Soybean (com. + seeed) Corn 2nd crop 3,739 3,607 7,121 7,385 2,175 4.1% 8.2% -3.8% 3,900 4.3% -3.5% 8.1% 7,333 3.0% 3.7% -0.7% Cotton lint 1st crop Cotton lint 2nd crop Actual cost of production The actual cost per hectare was 5.2% above the estimate, mainly due to the higher USD/BRL ex- change rate compared to the assumption adopted in the budget. The increase was fully offset by rev- enue, in accordance with the company's hedge policy. TABLE 3. ESTIMATED AND ACTUAL COST OF PRODUCTION 2019/2020 Total (R$/ha) Cotton 1st crop Cotton 2nd crop Soybean Corn 2nd crop Total average cost² Estimated 2019/2020 Actual 2019/2020¹ HA 8,397 9,362 11.5% 7,727 8,264 6.9% 2,901 3,015 3.9% 2,410 2,545 5.6% 4,368 4,597 5.2% 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. 29 29
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