The Ukrainian climate for growing corn is better than in Brazil and Argentina, yet the profitability is lower. Experts shared how to increase the profitability of corn production in Ukraine.
Original content
Even with the climatic fluctuations of recent years — droughts in the South and heavy rains in the West — the conditions for growing corn in Ukraine are better than those of its competitors (Brazil, Argentina, Canada), as evidenced by higher yields. However, the margin remains lower compared to the competitor countries. Oksana Bobrova, head of the Agrohub Benchmarking division, spoke about this and ways to increase the margin in her author's blog on Latifundist.com. "The 2023 season revealed a paradox. Corn in Ukraine yielded about 10.1 t/ha, but the break-even point is 9.6 t/ha. In Brazil, the yield is lower (≈7.6 t/ha), but the return threshold is 6.1 t/ha; in Argentina, it is 5.8 t/ha with 4.8 t/ha, respectively. Why is this? One of the answers is the cost structure," explains the expert. Taking the example of 2023, when about $1,285/ha was the highest figure among the analyzed countries for corn and significantly higher than the ≈$998/ha in Brazil and Argentina. The situation ...
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