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Corn Production Costs for the 2022/23 Crop Are 27.6% Higher Than Last Season. The Total Cost of Planting One Hectare of Cereal in Mato Grosso Is R$ 5,610.78.
Only the costs that directly affect effective operational costs (EOC) have increased by 39.52%. These figures refer to the production cost of high-tech corn for the 2022/23 crop.
According to a survey by the Mato Grosso Institute of Agricultural Economics (Imea), producers paid R$ 4,395.84 to plant one hectare in the 2021/22 crop.
Mato Grosso is expected to plant 7.42 million hectares for the 2022/23 corn crop. The outlook indicates a production of 104.29 sacks per hectare and a record yield of 46.41 million tons.
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Corn Fertilizer Increased Almost 60%
The survey also highlighted that, looking only at cost indicators, the cost of chemical fertilizers increased by 56.25%, the cost of mechanized operations increased by 47.76%, and the cost of soil improvement increased by 39.37%.
“This increase is tied to the continuous rise in input prices in the previous crop. Proof of this is the average price increase of urea in Mato Grosso between January and December 2022 compared to the same period in 2021 of 42.50%, diesel rising 45.13%, and dolomitic limestone with a rise of 43.92%,” emphasizes Imea.
Numbers of Corn Production in Brazil
Brazil produces about 80% of its corn and soybean grains. The difference between the two crops is that soybeans have characteristics of “bulk commodities” in the international market and have instant liquidity, while corn production is primarily based on internal supply, although it has been exported in large quantities recently, which helps provide higher domestic prices.
Despite this, corn has evolved into a commercial crop, with a productivity growth rate of 3.0% per year and planted area growth of 0.4% per year over recent decades.
Brazil is the third-largest corn producer in the world, after the United States and China, with a production of 100 million tons in the 2019/2020 crop, according to the United States Department of Agriculture (USDA). The country exported 38 million tons of corn in 2020, representing 19.8% of the total exported of this product. Cereal production is growing worldwide due to the importance of corn in various production chains.
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