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OPDT   OIL & PROTEIN SEEDS DEVELOPMENT TRUST
OAC   OILSEEDS ADVISORY COMMITTEE

OPDT
OIL & PROTEIN SEEDS DEVELOPMENT TRUST

OAC
OILSEEDS ADVISORY COMMITTEE


2019/2020 Income and Cost Budgets

KwaZulu-Natal – dryland

Income and cost budgets for maize and soybeans for KwaZulu-Natal (Bloedrivier region)
KwaZulu-Natal: Bloedrivier
Crop Maize Soybeans
Production system Dryland

1. Income

Yield: deterministic Ton/ha 7.00 2.65
SAFEX simulated price / producer price: 2020 R/ton 2 610 5 235
Total deductions R/ton 407 141
– Transport differential R/ton 338
– Grade differential R/ton
– Marketing and handling R/ton 69 141
Price premiums R/ton
Net farm gate price R/ton 2 203 5 094
Gross income R/ha R15 419 R13 498

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 586 1 647
Fertilizer R/ha 3 585 1 557
Lime R/ha 613
Seed R/ha 2 561 1 159
Fuel R/ha 1 102 654
Herbicide R/ha 1 109 900
Insecticide / Fungicides R/ha 679 715
Marketing costs R/ha
Repairs and maintenance R/ha 714 447
Casual labour R/ha 171
Aerial spray R/ha
Other expenditure R/ha
Total variable expenditure R/ha R11 120 R7 079
Total variable expenditure R/ton R1 589 R2 671
3.1 Gross margin R/ha R4 300 R6 419
3.2 Gross margin R/ton R614 R2 422
Break-even yield T/ha 5.05 1.39
Break-even price R/ton R1 589 R2 671
Source: BFAP, GSA and individual farmers – 2019
Gross margin comparison – baseline: KwaZulu-Natal (Bloedrivier region)
Gross margin comparison - Baseline: KwaZulu-Natal (Bloedrivier Region)

Gross margin per hectare: KwaZulu-Natal (Bloedrivier)

Maize sensitivity analysis
Yield (t/ha)
Producers price 5.50 6.00 6.50 7.00 7.50 8.00 8.50
R1 803 -1 204 -303 598 1 500 2 401 3 303 4 204
R1 903 -654 297 1 248 2 200 3 151 4 103 5 054
R2 003 -104 897 1 898 2 900 3 901 4 903 5 904
R2 103 446 1 497 2 548 3 600 4 651 5 703 6 754
R2 203 996 2 097 3 198 4 300 5 401 6 503 7 604
R2 303 1 546 2 697 3 848 5 000 6 151 7 303 8 454
R2 403 2 096 3 297 4 498 5 700 6 901 8 103 9 304
R2 503 2 646 3 897 5 148 6 400 7 651 8 903 10 154
R2 603 3 196 4 497 5 798 7 100 8 401 9 703 11 004
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 2.00 2.25 2.50 2.65 3.00 3.25 3.50
R4 694 2 308 3 482 4 655 5 359 7 002 8 175 9 349
R4 794 2 508 3 707 4 905 5 624 7 302 8 500 9 699
R4 894 2 708 3 932 5 155 5 889 7 602 8 825 10 049
R4 994 2 908 4 157 5 405 6 154 7 902 9 150 10 399
R5 094 3 108 4 382 5 655 6 419 8 202 9 475 10 749
R5 194 3 308 4 607 5 905 6 684 8 502 9 800 11 099
R5 294 3 508 4 832 6 155 6 949 8 802 10 125 11 449
R5 394 3 708 5 057 6 405 7 214 9 102 10 450 11 799
R5 494 3 908 5 282 6 655 7 479 9 402 10 775 12 149
Soybeans margin above/below maize
Yield Price (R/ton)
R4 794 R4 894 R4 994 R5 094 R5 194 R5 294 R5 394
1.65 -3 469 -3 304 -3 139 -2 974 -2 809 -2 644 -2 479
1.90 -2 271 -2 081 -1 891 -1 701 -1 511 -1 321 -1 131
2.15 -1 072 -857 -642 -427 -212 3 218
2.40 126 366 606 846 1 086 1 326 1 566
2.65 1 324 1 589 1 854 2 119 2 384 2 649 2 914
2.90 2 523 2 813 3 103 3 393 3 683 3 973 4 263
3.15 3 721 4 036 4 351 4 666 4 981 5 296 5 611
3.40 4 919 5 259 5 599 5 939 6 279 6 619 6 959
3.65 6 118 6 483 6 848 7 213 7 578 7 943 8 308

Notes

  • The cost items reflect the input allocation based on the target yield for the respective crops.
  • Although some expenditure items are zero, it is reflected in the budgets to allow for individual inclusion.
  • Fertiliser assumptions (kg/ha): Maize N:P:K – 140:22:22. Soybeans N:P:K – 10:18:36.
  • Micro-elements such as calcium, magnesium and zinc are included in the fertiliser costs.
  • The cost of fuel includes pre-harvest and harvesting costs with the assumption that own machinery is used.
  • The cost for soybean seed reflects a combination of own and purchased seed.
  • There will be large fluctuations for insurance cost (hail) based on the associated risk in respective areas. It is advised that producers adjust this cost based on their individual premiums.
  • It is important to note that overhead costs are not included and should be accounted for.
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