Cost of Corn Production in 2013

By CnAgri2013-11-18 11:08:59 Print

China’s corn yield is estimated to drop 2.5% this year, a result of adverse weather. Corn price averaged RMB2,178/MT in Aug. ~ Oct., down 2% on the year-on-year basis. Per hectare corn output value is RMB16,118 this year, down 4.22% on the year-on-year basis.
 
Corn price is affected by large quantities of corn imports and soft demand from the livestock industry and grain-processing industry.
 
The fertilizer cost of corn production was RMB2,045/hectare this year, down 5.46% on the year-on-year basis. Diesel oil price dropped 2.25%. But seed cost, land cost and labor went up 10%, 8.71% and 4.99% respectively over last year, reaching RMB780/hectare, RMB6,274/hectare and RMB2,955/hectare respectively. Corn production generated a net profit of RMB1,673/hectare, suggesting a low profit/cost ratio of 11.23%.
 
The cost of corn seeds, fertilizer, pesticides, plastic film and agricultural service are estimated to be RMB34.096 billion, RMB73.746 billion, RMB7.91 billion, RMB169 million and RMB62.328 billion respectively this year, up 24.76%, down 1.71%, up 9.17%, up 7.23% and up 2.54% respectively on the year-on-year basis.
 
BOABC predicts that planted corn acreage may drop 2 ~ 3% next year but corn price may rise more than 10%. Corn seed, fertilizer and plastic film consumption are predicted to be 1.096 million MT, 12.05 million MT (nutrient) and 162,900 MT respectively in 2014, down 1.29%, up 6.43% and up 11.64% respectively on the year-on-year basis.





From “China Grains Market Weekly Report”