August 16, 2010

Brazil incurs higher cattle farming costs in Q1

Brazilian cattle production costs increased 4.9% during the first three months of 2010, according to the University of Sao Paulo.

Among all major production inputs, restocker cattle registered the largest increase during the period at 6.9%. Pasture mineral fertilisers posted the second largest cost rise at 6.8%. Overall, total operational costs rose 1.8% during the period.

Brazil's economy is booming, with GDP growing 9% on-year during the first half of 2010, driven by increased domestic demand and industrial production.

However, the strong growth in consumption has contributed to a rise of 10.75% in interest rate, as the consumer price index has risen above the central bank's 4.5% per annum target.