Cost of Producing One Sack of Rice 32,000 Won... Fertilizer Price Surge Raises Cost by 3,000 Won

Statistics Korea, 2022 Rice Production Cost Survey Results
Sharp Decline in Net Profit Due to Increased Production Costs and Falling Rice Prices

The production cost of a 20kg bag of rice from the 2022 harvest increased by 3,000 won compared to the previous year. This was due to a more than 70% surge in fertilizer costs.

On the 30th, Statistics Korea announced the results of the "2022 Paddy Rice Production Cost Survey," which included this information.

According to the report, the production cost of paddy rice per 10a (1,000㎡) was 854,000 won, an increase of 62,000 won (7.9%) from the previous year. This was because fertilizer purchase costs surged by 37,099 won (71.4%), from 51,984 won in 2021 to 89,083 won, due to the Russia-Ukraine conflict. Including this, direct production costs rose by 68,053 won (13.6%). On the other hand, indirect production costs such as land service fees decreased by 5,856 won (-2.0%).

The production cost per 20kg of rice increased by 2,689 won (9.3%), from 28,942 won in 2021 to 31,631 won. Rice yield per 10a decreased by 12kg (-2.3%) compared to the previous year.

The net income from paddy rice per 10a sharply declined by 185,000 won (-36.8%) to 317,000 won. While total revenue decreased by 123,000 won (-9.5%) due to falling rice prices at production sites, production costs increased by 62,000 won (7.9%). The net income rate per 10a was 27.1%, down 11.7 percentage points from the previous year, and the income rate was 51.7%, a decrease of 9.0 percentage points.

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