The effective operating cost (COE) for the 2023/24 cotton harvest in Mato Grosso showed a decrease of 8.68% compared to the consolidated cost in the 2022/23 harvest. The first estimate of the production cost by the Mato Grosso Institute of Agricultural Economics (Imea) highlights that despite the decrease, the total cost to sow one hectare remains higher than in previous cycles.
According to the Imea survey, the effective operating cost for the 2023/24 cotton season in Mato Grosso was R$16,849.56 per hectare.
“This decrease was mainly driven by the 28.11% drop in fertilizer costs, since they represent 22.15% of the COE. It is worth noting that the decrease compared to the 2022/23 harvest is a reflection of the high price levels that fertilizers reached in the 2022/23 season”, explains Imea. Imea highlights that, considering the same productivity of the 2022/23 harvest at 115.76 arrobas per hectare, it is necessary for the cotton grower from Mato Grosso to negotiate his lint at R$ 145.56 per arroba at least to cover his effective operational cost.
Total production cost exceeds R$ 19 thousand per hectare
Despite the decline in the effective operational cost, according to Imea, the cost of cotton production remains higher than that observed in previous harvests. For the 2023/24 harvest, the projection points to R$ 19,201.09 per hectare, an amount 1.31% above the R$ 18,951.98 of the 2022/23 season. Imea points out that the increase is “driven by the significant increases observed in the prices of inputs, which should be a point of attention for the cotton grower’s cost management”.
Source: Canal Rural