Epagri indicates reduction in fertilizer prices for the winter harvest in Santa Catarina

This week, data from the new survey of the reference production cost calculated by the Center for Socioeconomics and Agricultural Planning (Epagri/Cepa) was made available. In this update, the numbers cover the main products grown in Santa Catarina in the winter harvest: garlic, onion, oats and wheat. In general, the costs of fertilizers and pesticides were reduced compared to last year, in terms of nominal values ​​(without correction for inflation in the period).

The reference production costs are based on a survey carried out by Epagri/Cepa of the prices of inputs, services and other components necessary for agricultural production. Three times a year, in the months of April, July and October, the team of market agents, distributed throughout all regions of Santa Catarina, raises the prices of more than 700 items. It is based on data from the last collection, carried out in April, that the reference production costs for winter crops were calculated.

Wheat and oats

The reference production cost for wheat, the main winter cereal grown in Santa Catarina, showed a reduction compared to those recorded in the last harvest. This is due to the reduction in input prices (-11%), a category that covers fertilizers (-26%), pesticides and seeds. In the case of oats, although fertilizers and pesticides also registered lower prices than in the previous harvest, the increase in the price of seeds caused the total cost to increase.

According to the Socioeconomics and Rural Development analyst at Epagri/Cepa, João Alves, even though the cost of wheat production has shown a reduction, the value received by the producer per bag has fallen significantly compared to the same period last year. As a result, the exchange ratio, that is, how many bags of product are needed to purchase a bag of fertilizer, for example, is not advantageous to producers.

Garlic and onion

The reference production cost for vegetables (garlic and onion) increased. In the case of garlic, when comparing data collected in April 2024 with April 2023, the main components of the production cost had an increase in prices. Inputs, labor, mechanical services and production insurance showed an increase in value.

In the case of onion, although inputs have reduced in price compared to the last harvest, labor, mechanical services and production insurance have increased, which has meant that, overall, the cost of reference production would be higher in April 2024, when compared to the same period of the previous year. One fact that draws attention is that labor became the main component of the production cost of onion cultivation this year, surpassing inputs, which until then were the item in which producers spent the most investment.

Reference cost

As João Alves explains, the reference cost is different from the real cost, which is the one that each producer records throughout the harvest. The reference cost is calculated based on technical coefficients that take into account the state average productivity for each crop. In other words, it is the estimated cost of adopting appropriate technical procedures for the producer to reach the state average productivity. Therefore, the cost calculated by Epagri/Cepa works as a guide. “For the producer to assess whether its real cost is far below or above the reference production cost”, explains João.

The prices of individual inputs and calculated production costs are available on the Observatório Agro Catarinense website, in the panels in the Agricultural Market thematic area. It also details previous surveys that, for some products, have been carried out since 2019. Data from the latest survey is also available on the Infoagro website.