Corn Cost and Pricing Analysis
In this corn procurement intelligence report, we have estimated the pricing of the key cost components. Land, seeds, and transportation cost form the largest cost component of corn category implementation. Land account for 60-65% of the total cost. Seeds are a significant cost component in the corn market, as they are a seed-propagated crop. The cost of seeds varies based on variety, seed quality, and market conditions. Transportation is another significant cost component, as corn is a bulky crop that can be expensive to transport. The cost of transportation depends on distance, mode, and market conditions. Throughout the first quarter of 2023, total landed expenses for shipping corn through the Gulf route were USD 389 per metric ton (mt). The total transportation cost was USD 132.00 per metric ton for shipping corn through ocean from Minneapolis to Japan in the last quarter of 2022.
Order your copy of the Corn category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis
Operational Capabilities - Corn
Industries Served - 25%
Employee Strength - 25%
Years in Service - 20%
Key Clients - 10%
Geographical Presence - 10%
Revenue Generated - 10%
Functional Capabilities - Corn
Precision Farming - 20%
Fertilizers - 20%
Pesticides - 20%
Drip Irrigation - 20%
Harvesting Robots - 20%
Rate Benchmarking
Labor costs in the US are higher than in China due to factors like higher living costs, stronger labor unions, and higher minimum wage. Land costs are also higher in the US due to higher demand, limited availability, and higher productivity. Environmental regulations are stricter in the US, requiring farmers to spend more money to comply. Large companies like ADM and Cargill invest heavily in research and development to improve agricultural efficiency and productivity, while China has less investment in these areas. Brazil has higher land costs, labor costs, transportation costs, and weather conditions compared to Argentina. Land demand, limited availability, and higher productivity contribute to these higher costs. Labor costs are higher in Brazil due to higher living costs, stronger unions, and higher minimum wage. Transportation costs are higher due to Brazil's larger size, lower infrastructure development, and higher fuel costs. Brazil's more variable weather conditions require farmers to take more precautions. Government subsidies to agricultural producers are lower in Brazil, resulting in higher costs for inputs like seed, fertilizer, and pesticides.
List of Key Suppliers
- Bayer AG
- Corteva Agriscience
- Groupe Limagrain
- Bunge
- Syngenta Group
- Satake
- Glencore
- Cargill
- Groupe Limagrain
- ADM
Supplier Newsletter
- In July 2023, Cargill and John Deere have established a partnership to provide new revenue streams for farmers who use sustainable techniques. This will save farmers time, provide improved data accuracy, and provide the most up-to-date, consistent, and complete view of their operation.
- In June 2023, Bunge of the United States and Viterra, which is funded by Glencore, are merging to become a USD 34 billion agricultural trading behemoth. The transaction brings the merged business closer to global rivals ADM and Cargill, with Bunge and Viterra valued at approximately USD 17 billion each.
- May 2022: The Government of India's Minister of Agriculture and Farmers Welfare, Narendra Singh Tomar, declared that the government intends to increase corn production in India through various programs such as corn MSP.
Browse through Grand View Research’s collection of procurement intelligence studies:
- Office Supplies Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
- Media Buying and Planning Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
Corn Procurement Intelligence Report Scope
- Corn Category Growth Rate : CAGR of 3.1% from 2023 to 2030
- Pricing Growth Outlook : 3% - 5% (Annually)
- Pricing Models : Volume-based pricing model and cost-plus pricing model
- Supplier Selection Scope : Cost and pricing, past engagements, productivity, geographical presence
- Supplier Selection Criteria : Sustainability, price, quality, reliability, flexibility, technical specifications, operational capabilities, regulatory standards and mandates, category innovations, and others.
- Report Coverage : Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structue, competitive landscape, growth factors, trends, engagement, and operating model
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.
Our services include (not limited to):
- Market Intelligence involving – market size and forecast, growth factors, and driving trends
- Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
- Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
- Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
