Costs and losses put pressure on soybean prices in MS

Farmers must register insurance problems with Aprosoja (MS)

08.02.2022 | 15:10 (UTC -3)
Diego Silva

The current price for a 60-kilo bag of soybeans in Mato Grosso do Sul, R$165,45, is far from representing the profit of the Mato Grosso do Sul farmer. In addition to production costs that rose 60% compared to the last cycle, according to Aprosoja/MS - Association of Soy and Corn Producers, it is also necessary to consider the weighted average of prices paid and the losses caused by the drought in the current harvest.

“There is an impression that high prices paid today for soybeans or corn bags represent very high profits for the producer, which is far from correct information. It is worth remembering that the producer makes his sales based on production cost inputs”, explains the president of Aprosoja/MS, André Dobashi. “The producer is unable to sell all of his production at the best price, because he starts back there, locking the inputs that he uses in bags of soybeans and, consequently, he does not get the highest price for the production, nor the lowest. , he creates an interesting exchange relationship for him and, with this, he is able to back his cost in his currency, which is the bag of soybeans and corn produced, taking less risk,” he adds.

A bag of soybeans, which currently costs R$ 165,45, began to be sold in February 2021 at R$ 151,06, reaching an average of R$ 155,08, a value that would be closer to the reality of the which is paid to the producer. From this average, costs are also removed, which correspond to 41 bags per hectare. According to Aprosoja/MS, the estimated soybean productivity is 50,6 bags per hectare, leaving just over 9 bags per hectare for the producer.  

“The soy bag is priced at this price because there is no product on the market, no one is making money from it. The product is valued to stimulate what little it has to be sold, and not necessarily meaning profit for the farmer”, explains Dobashi. “Mato Grosso do Sul is facing a very severe drought and causing productivity to fall day after day, he will harvest little, and the little he has to be harvested needs to pay the bill he made last year. So, he won’t be able to take advantage of these amounts that are being paid”, he laments. 

Regarding the inputs mentioned by the president, the economist at Aprosoja/MS, Renata Farias, points out that they all had an increase, including: soybean seed which increased by 73%, soybean corrective which increased by 110%, fertilizers which represented an increase of 91% and insecticide 54%, in addition to other products. In addition to these, there are also private costs, such as those who took out crop insurance, among other bills.

Insurance

Aprosoja/MS and the Famasul System have received several complaints from the producing class about the insurance companies, which were not carrying out inspections within the agreed time, as well as the delay in issuing reports and, consequently, in the payment of insurance premiums. According to the Association, there are late payments for corn in the second harvest of 2021, when several losses were recorded due to the cold and drought. 

Regarding this, Aprosoja/MS is collecting information from producers, and remains in constant contact with the Ministry of Agriculture, which, through Minister Tereza Cristina, is mobilizing to help with the situation.

“Together with Famasul, we work to provide assistance to producers, mainly in the legal sphere, but to do so it is necessary to make the complaint official, hence the importance of the farmer registering it with Aprosoja/MS”, concludes André Dobashi.

Cultivar Newsletter

Receive the latest agriculture news by email