Cost of Wheat Production in 2012 ~ 2014

By CnAgri2013-10-23 11:24:25 Print According to the State Development Commission, wheat growers’ a cost of land, material and labor recorded RMB2,135/hectare, RMB5,950/hectare and RMB4,371/hectare respectively in 2012, up 10.12%, 17.25% and 29.12% respectively on the year-on-year basis. While wheat yield dropped 1.65% from the previous year to a level of 5,741kg/hectare, wheat price merely climbed 4.19% to a level of RMB2,166/MT. The returns from wheat were RMB319/hectare, suggesting a bottom low profit/cost ratio since 2004.
 
In 2013, wheat growers’ material and service cost went down to RMB5,765/hectare and the total cost of wheat production went down to RMB11,003/hectare, thanks to fertilizer price decline. On the other hand, wheat price ran high, bringing up profit/cost ratio by a small margin.
 
In 2014, wheat seed price is predicted to go up but fertilizer price is predicted to drop. The cost of wheat production is predicted to be RMB10,962/hectare. Taking into account of the government’s subsidy and wheat price growth, wheat production may generate a profit/cost ratio of 29.48%.




From “China Grains Market Weekly Report”