Argentina: Analysis of production costs for an onion crop in Santiago del Estero during the 2025 season

Ing. Agr. (M. Sc.) Eve Luz Yñiguez

Vegetable Production Group - Agribusiness INTA EEA Santiago del Estero

Email: yniguez.eve@inta.gob.ar

Introduction

Onion cultivation faces challenges in terms of production costs, soil water use efficiency, and economic sustainability. This analysis seeks to identify the main costs involved and propose optimization strategies.

The costs of labor and inputs required to produce one hectare of onions from planting to harvest were identified and quantified. Costs reported by regional producers were considered, and updated values ​​were established for the current season.

The approximate total cost for the onion campaign up to harvest is $1,018.82 per hectare.

Compared to the 2024 campaign, which was $990 with an average yield of 800 bags/ha, costs for the 2025 campaign would only increase by 3%.

The analysis does not include harvesting or marketing costs, which are key aspects for assessing final profitability.

Conclusions and Recommendations

Increased expected performance : increasing production, which can offset the increase in costs.

Cost optimization : It is recommended to explore alternatives to reduce fertilization and irrigation costs through efficient water management strategies and the use of biofertilizers.

Final profitability analysis : It is necessary to incorporate harvesting and marketing costs to more accurately estimate net profitability.

Market diversification : Evaluate marketing strategies that improve the final price of the product and boost profitability.

This analysis provides a basis for decision-making in onion production in the Rio Dulce irrigated zone of Santiago del Estero and highlights the importance of considering all factors that influence the crop’s ultimate profitability.

Regarding proposals for optimization strategies, the following is suggested:

Efficient use of water : Implementation of irrigation schedules based on the water demand of the crop.

Selective mechanization : Incorporation of technology to reduce labor costs.

Implementing Agriculture 5.0 tools can optimize costs and improve the efficiency of onion cultivation. Some recommended technologies include:

Soil moisture sensors : To monitor irrigation needs in real time and prevent water waste.

Drones with multispectral cameras : To assess crop health and detect nutritional deficiencies or diseases early.

Agricultural management software : To record and analyze data on costs, yields, and input consumption, facilitating decision-making based on accurate information, along with a business plan tailored to the area.

Use of intelligent irrigation systems that dispense water and nutrients according to crop demand.

The use of these technologies allows for cost reduction and optimization of production, and contributes to the sustainability of the production system.