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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 (Bergville) – irrigation

Income and cost budgets for maize and soybeans for KwaZulu-Natal (Bergrivier)
Area KwaZulu-Natal: Bergrivier
Crop Maize Soybeans
Production system Irrigation

1. Income

Yield: deterministic Ton/ha 12.00 4.00
SAFEX simulated price / producer price: 2020 R/ton 2 610 5 235
Total deductions R/ton 389 141
– Transport differential R/ton 320
– Grade differential R/ton
– Marketing and handling R/ton 69 141
Price premiums R/ton
Net farm gate price R/ton 2 221 5 094
Gross income R/ha R26 649 R20 374

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 1 013 2 852
Fertilizer R/ha 6 443 2 441
Lime R/ha 600
Seed R/ha 3 688 2 015
Fuel R/ha 1 019 820
Herbicide R/ha 1 109 900
Insecticide / Fungicides R/ha 679 715
Marketing costs R/ha
Repairs and maintenance R/ha 714 624
Casual labour R/ha 197
Aerial spray R/ha
Irrigation electricity R/ha 2 049 1 744
Water R/ha 1 936 1 648
Other expenditure: scheduling/irrigation equipment R&M R/ha 532 532
Total variable expenditure R/ha R20 038 R14 291
Total variable expenditure R/ton R1 670 R3 573
3.1 Gross margin R/ha R6 611 R6 083
3.2 Gross margin R/ton R551 R1 521
Break-even yield T/ha 9.02 2.81
Break-even price R/ton R1 670 R3 573
Source: BFAP, GSA and individual farmers – 2019.
Gross margin comparison – baseline: KwaZulu-Natal (Bergrivier)
Figure 3.2: Gross margin comparison – Baseline: KwaZulu-Natal irrigation

Gross margin per hectare: KwaZulu-Natal (Bergville)

Maize sensitivity analysis
Yield (t/ha)
Producers price 10.50 11.00 11.50 12.00 12.50 13.00 13.50
R1 821 -920 -10 901 1 811 2 722 3 632 4 542
R1 921 130 1 090 2 051 3 011 3 972 4 932 5 892
R2 021 1 180 2 190 3 201 4 211 5 222 6 232 7 242
R2 121 2 230 3 290 4 351 5 411 6 472 7 532 8 592
R2 221 3 280 4 390 5 501 6 611 7 722 8 832 9 942
R2 321 4 330 5 490 6 651 7 811 8 971.55 10 132 11 292
R2 421 5 380 6 590 7 801 9 011 10 222 11 432 12 642
R2 521 6 430 7 690 8 951 10 211 11 472 12 732 13 992
R2 621 7 480 8 790 10 101 11 411 12 722 14 032 15 342
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.50 3.75 4.00 4.25 4.50 4.75
R4 694 963 2 136 3 310 4 483 5 656 6 830 8 003
R4 794 1 288 2 486 3 685 4 883 6 081 7 280 8 478
R4 894 1 613 2 836 4 060 5 283 6 506 7 730 8 953
R4 994 1 938 3 186 4 435 5 683 6 931 8 180 9 428
R5 094 2 263 3 536 4 810 6 083 7 356 8 630 9 903
R5 194 2 588 3 886 5 185 6 483 7 781 9 080 10 378
R5 294 2 913 4 236 5 560 6 883 8 206 9 530 10 853
R5 394 3 238 4 586 5 935 7 283 8 631 9 980 11 328
R5 494 3 563 4 936 6 310 7 683 9 056 10 430 11 803
Soybeans margin above/below maize
Yield Price (R/ton)
R4 794 R4 894 R4 994 R5 094 R5 194 R5 294 R5 394
3.00 -6 522 -6 222 -5 922 -5 622 -5 322 -5 022 -4 722
3.25 -5 323 -4 998 -4 673 -4 348 -4 023 -3 698 -3 373
3.50 -4 125 -3 775 -3 425 -3 075 -2 725 -2 375 -2 025
3.75 -2 927 -2 552 -2 177 -1 802 -1 427 -1 052 -677
4.00 -1 728 -1 328 -928 -528 -128 272 672
4.25 -530 -105 320 745 1 170 1 595 2 020
4.50 669 1 119 1 569 2 019 2 469 2 919 3 369
4.75 1 867 2 342 2 817 3 292 3 767 4 242 4 717
5.00 3 065 3 565 4 065 4 565 5 065 5 565 6 065

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 – 240:42:48. Soybeans N:P:K – 20:36:40.
  • Microelements 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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