Cost of Early Indica Production in 2012 & 2013

By CnAgri2013-03-11 11:26:58 Print From December of 2011 to July of 2012, fertilizer price moved up 7.96% in major farming regions on average. Specifically, urea, potassium chloride and NPK prices went up 11.46%, 5.4% and 8.44% respectively. Diesel oil price went up 4.22% in the meantime.
 
According to the State Development Commission, the cost of early indica seeds, fertilizer and fuel was about RMB779/hectare, RMB2,056/hectare and RMB2,642/hectare respectively in 2012, up 25%, 8.96% and 10.77% respectively on the year-on-year basis. Taking into account of the cost of labor, land use fee and other materials and services, the cost of early indica added up to RMB13,782/hectare in 2012, up 11.68% on the year-on-year basis.
 
It is predicted that the total cost of paddy production may be RMB14,707/hectare in 2013, up 6.71% on the year-on-year basis, a slow growth rate in ten years, conducive to paddy production.
 
Calculating at the current farm material price trend, the cost of seeds, fertilizer and fuel is predicted to be RMB841/hectare, RMB2,044/hectare and RMB2,825/hectare respectively this year, up 8%, down 0.59% but up 6.94% respectively on the year-on-year basis.
 
Early indica yield grew 1.35% in 2012 over the previous year. The government’s protective procurement price rose 17.65% in the meantime to a level of RMB2,400/MT. Thus, the returns from early indica were RMB17,166/MT in 2012, an increase of 10.6% on the year-on-year basis. The crop generated a net profit of RMB3,874/hectare, up 6.42% on the year-on-year basis.
 
The government raised early indica protective procurement price to RMB2,640/MT in early 2013, up 10% on the year-on-year basis. This may lead to a net profit of RMB4,346/hectare.
 
Planted early indica acreage was 3.734 million hectares in 2012. The crop’s output value was estimated to be RMB98.4 billion, up 10.31% on the year-on-year basis. The crop generated a profit of RMB25.4 billion, up 6.14% on the year-on-year basis. Commodity early indica sales volume and value were estimated to be 28.18 million MT and RMB83.9 billion, up 10.04% and 23.64% respectively on the year-on-year basis.
 
Farmers’ consumption of early indica seeds, fertilizer and plastic film were about 256 million kilograms, 1.87 million MT (nutrient) and 257 million kilograms respectively, valuing RMB4.904 billion, RMB11.922 billion and RMB3.493 billion respectively, up 24.67%, 8.67% and 2.73% respectively on the year-on-year basis.
 
Planted early indica acreage is predicted to expand slightly to 5.833 million hectares in 2013. The crop may generate an output value of RMB111.1 billion and a profit of RMB25.354 billion respectively, up 12.91% and 30.64% respectively on the year-on-year basis.
 
Farmers’ consumption of early indica seeds, fertilizer and plastic film are estimated to be 256 million kilograms, 1.905 million MT and 24,400 MT respectively in 2013, up 1.87%, up 0.27% but down 5.18% respectively on the year-on-year basis. Farmers’ expenses on indica seeds, fertilizer and pesticides are predicted to go up 1.12%, 9.86% and 4.77% respectively on the year-on-year basis.

From “China Grains Market Weekly Report”