Analysis of Grain Planting Profit in 2013

By CnAgri2013-12-24 09:21:36 Print Planting profit: in 2013, due to normal weather condition and intensive effort of government’s support to grain production, the unit yield in major production areas increased by 1.41% YOY to 6887Kg/hectare. As for price, according to monitoring, average price increased 2.24% from May to October. Price from farmers was RMB2451/MT and unit output value was RMB17221/hectare.
　　
Planting cost: from Sept. 2012 to Aug. 2013, costs for agricultural materials such as fertilizer and pesticide etc. Declined, of which, average price for fertilizer, ABC, urea, potassium chloride and NPK declined 2.45%, 2.85%, 4.16%, 3.89% and 2.48% respectively; price for diesel fuel increased 0.37%; though surplus, price for seed increased by 10% to RMB843/hectare; cost for material and service, land and labor was RMB6008/hectare, RMB2802/hectare and RMB5861/hectare respectively, up 0.56%, 12.39% and 5.05% respectively YOY. Unit net profit was RMB1673/hectare with profit and cost rate of 17.39%, basically the same with 2011, lowest since 2004. Grain production will be worse influenced without policy support from government.
　　
Grain production: in 2012, grain planting acreage registered 111.205 million hectares, up 9.45% from 2004 and up 0.57% from 2011 with annual growth rate of 1.13%; grain output value was 1.8429 trillion yuan, up 105% from 2004 and up 6.64% from 2011with annual growth rate of 9.34%; planting cost was 1.562 trillion yuan, up 159% from 2004 and up 12.70% from last year with annual growth rate of 12.64%; farmers’ planting profit was only 252.6 billion yuan, down 6.20% from 2004 with annual growth rate of -0.8%. The decline of farmers’ planting profit has serious influences on China’s grain safety.
　　
In 2013, grain planting acreage was 111.952 million hectares, up 0.67% from last year; based on average price since new grain list, grain output value totaled 1.928 trillion yuan, planting cost was 1.6424 trillion yuan and farmers’ profit totaled 285.6 billion yuan, up 4.61%, 5.14% and 1.67% respectively on year-on-year basis.
　　
As for cost for material and service, in 2012, net quantity(hereinafter the same) of fertilizer and agricultural film was 50.51 million MT, up 27.41% from 2004 and up 1.54% from 2011 with annual growth rate of 3.07%, of which. Consumption of seeds, fertilizer, agriculture film registered 11.44 million MT, 38.73 million MT and 333,600 MT respectively, up 12.56%, 32.78% and 9.45% from 2004 and up 1.91%, 1.40% and 5.86% from 2011 with annual rowth rate of 1.49%, 3.61% and 1.13% respectively. In 2013, agricultural material consumption totaled 51.93 million MT, up 2.80% from 2012, of which, consumption of seeds, fertilizer and agricultural film was 11.54 million MT, 40.04 million MT and 347,500 MT, up 0.81%, 3.38% and 4.17% respectively from 2012.
　　
As for market value, in 2012, the market value of seeds, fertilizer, pesticide, agricultural film and agricultural services (including land leasing, technical service, insurance and sales) registered 86.8 billion yuan, 239.2 billion yuan, 43.7 billion yuan, 4.7 billion yuan and 300.2 billion yuan, up 171%, 120%, 148%, 87% and 179% from 2004 and up 13.25%, 10.34%, 12.04%, 8.16% and 13.16% from 2011 with annual growth rate of 13.25%, 10.34%, 12.04%, 8.16% and 13.69% respectively. In 2013, the market value of seeds, fertilizer, pesticide, agricultural film and agricultural services registered 94.4 billion yuan, 227.5 billion yuan, 45.3 billion yuan, 4.8 billion yuan and 312.8 billion yuan, up 12.7%, 12.43%, 12.7%, 7.1% and 13.51% from 2012 respectively.

From “China Grains Market Weekly Report”