VISIT THE SOUTH AFRICAN RESOURCE PORTAL FOR IMPORTANT COVID-19 CORONA VIRUS INFO

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

North West (Koster) – dryland

Income and cost budgets for maize, soybeans and sunflower for North West in the Koster region
Area North West: Koster
Crop Maize Soybeans Sunflower
Production system Dryland

1. Income

Yield: deterministic Ton/ha 4.75 2.00 2.00
SAFEX simulated price / producer price: 2019 R/ton 2 624 5 235 5 258
Total deductions R/ton 231 141 304
– Transport differential R/ton 162 180
– Grade differential R/ton
– Marketing and handling R/ton 69 141 124
Price premiums R/ton
Net farm gate price R/ton 2 393 5 094 4 954
Gross income R/ha R11 366 R10 187 R9 907

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 239 1 140 288
Fertilizer R/ha 2 225 1 022 1 145
Lime R/ha 300
Seed R/ha 792 696 498
Fuel R/ha 993 660 832
Herbicide R/ha 848 488 159
Insecticide / Fungicides R/ha 409 66 16
Marketing costs R/ha
Repairs and maintenance R/ha 959 545 667
Casual labour R/ha 171 171
Aerial spray R/ha
Other expenditure R/ha
Total variable expenditure R/ha R6 936 R4 617 R3 775
Total variable expenditure R/ton R1 460 R2 309 R1 888
3.1 Gross margin R/ha R4 430 R5 570 R6 132
3.2 Gross margin R/ton R933 R2 785 R3 066
Break-even yield T/ha 2.90 0.91 0.76
Break-even price R/ton R1 460 R2 309 R1 888
Source: BFAP, GSA, NWK and individual farmers – 2019.
Gross margin comparison – baseline: North West (Koster and Lichtenburg)
Gross margin comparison - Baseline: North West: Koster and Lichtenburg

Gross margin per hectare: North West (Koster)

Maize sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.75 4.25 4.75 5.25 5.75 6.25
R1 993 -459 537 1 534 2 530 3 527 4 523 5 520
R2 093 -134 912 1 959 3 005 4 052 5 098 6 145
R2 193 191 1 287 2 384 3 480 4 577 5 673 6 770
R2 293 516 1 662 2 809 3 955 5 102 6 248 7 395
R2 393 841 2 037 3 234 4 430 5 627 6 823 8 020
R2 493 1 166 2 412 3 659 4 905 6 152 7 398 8 645
R2 593 1 491 2 787 4 084 5 380 6 677 7 973 9 270
R2 693 1 816 3 162 4 509 5 855 7 202 8 548 9 895
R2 793 2 141 3 537 4 934 6 330 7 727 9 123 10 520
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R4 694 1 250 2 423 3 596 4 770 5 943 7 117 8 290
R4 794 1 375 2 573 3 771 4 970 6 168 7 367 8 565
R4 894 1 500 2 723 3 946 5 170 6 393 7 617 8 840
R4 994 1 625 2 873 4 121 5 370 6 618 7 867 9 115
R5 094 1 750 3 023 4 296 5 570 6 843 8 117 9 390
R5 500 2 258 3 633 5 008 6 383 7 758 9 133 10 508
R5 750 2 570 4 008 5 445 6 883 8 320 9 758 11 195
R6 000 2 883 4 383 5 883 7 383 8 883 10 383 11 883
R6 250 3 195 4 758 6 320 7 883 9 445 11 008 12 570
Sunflower sensitivity analysis
Yield (t/ha)
Producers price 1.25 1.50 1.75 2.00 2.25 2.50 2.75
R4 554 1 917 3 055 4 193 5 332 6 470 7 609 8 747
R4 654 2 042 3 205 4 368 5 532 6 695 7 859 9 022
R4 754 2 167 3 355 4 543 5 732 6 920 8 109 9 297
R4 854 2 292 3 505 4 718 5 932 7 145 8 359 9 572
R4 954 2 417 3 655 4 893 6 132 7 370 8 609 9 847
R5 250 2 787 4 100 5 412 6 725 8 037 9 350 10 662
R5 500 3 100 4 475 5 850 7 225 8 600 9 975 11 350
R5 750 3 412 4 850 6 287 7 725 9 162 10 600 12 037
R6 000 3 725 5 225 6 725 8 225 9 725 11 225 12 725
Soybeans margin above/below maize
Yield Price (R/ton)
R4 794 R4 894 R4 994 R5 094 R5 194 R5 294 R5 394
0.50 -6 651 -6 601 -6 551 -6 501 -6 451 -6 401 -6 351
0.75 -5 452 -5 377 -5 302 -5 227 -5 152 -5 077 -5 002
1.00 -4 254 -4 154 -4 054 -3 954 -3 854 -3 754 -3 654
1.25 -3 056 -2 931 -2 806 -2 681 -2 556 -2 431 -2 306
2.00 540 740 940 1 140 1 340 1 540 1 740
1.75 -659 -484 -309 -134 41 216 391
2.00 540 740 940 1 140 1 340 1 540 1 740
2.25 1 738 1 963 2 188 2 413 2 638 2 863 3 088
2.50 2 936 3 186 3 436 3 686 3 936 4 186 4 436

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 – 81:18:8. Soybeans N:P:K – 10:15:8. Sunflower N:P:K – 54:9:0.
  • 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.
Subscribe: receive ICBs via e-mail