Summary on gross margins

Figures 4.1, 4.2 and 4.3 provide a summary on gross margins for dryland and irrigated summer crops for the 2018/19 production season. It further compares its performance against 2018 gross margin levels. Figure 4.1 indicates the average dryland gross margin for maize, soybeans and sunflower for 9 agro-ecological regions. It is projected that maize will perform better opposed to 2018, driven by higher domestic and international maize prices which is further supported by a weaker exchange rate to the US dollar. Over the medium term, it is anticipated that a continuous shift towards feed related crops will occur. Furthermore, productivity will be critical to counterpart the cost price squeeze effect in low price scenarios.