Corn Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

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.

Land is one of the major factors in the overall costs associated while offering a product or service. Therefore, if a company is offering its services at reasonable pricing, it must decide if the focus category should be kept in-house or outsourced. Before choosing a supplier and creating a bargaining strategy, the firm that decides to outsource must comprehend the variations in the compensation structures of suppliers.

According to our research, processing manager at ADM receive a 5% - 10% higher base salary compared to the salary received by processing manager working in companies such as Cargill and Bayer AG. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the corn category over the last two years:

• 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.