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 Income and Cost Budgets

Southern Cape – dryland

Income and cost budgets for wheat, barley, canola, oats and lupins for Southern Cape (Riversdal / Albertinia)
Area Southern Cape: Riversdal / Albertinia
Crop Wheat Barley Canola Oats Lupins
Production system Dryland

1. Income

Yield: deterministic Ton/ha 2.70 2.80 1.50 2.20 1.50
SAFEX simulated / derived price: 2019 R/ton 4 513 4 513 5 230 3 144 3 250
Total deductions R/ton 751 633 135 5 5
– Transport differential R/ton 580 580 130
– Grade differential R/ton 64
– Marketing, handling and statutory levies R/ton 107 53 5 5 5
Price premiums / Canola back-payment (10% of contracted price) R/ton 75 523
Net farm gate price R/ton 3 762 3 837 5 618 3 139 3 245
Gross income R/ha R10 157 R10 742 R8 427 R6 906 R4 868

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 28 35 28 23 16
Fertilizer R/ha 1 299 1 299 1 734 1 049 662
Lime R/ha 107 107 107 107 107
Seed R/ha 833 400 629 371 984
Fuel R/ha 522 533 533 521 499
Herbicide R/ha 1 154 959 671 468 819
Insecticide R/ha 195 233 658 143 112
Fungicides R/ha 555 1 047 284 527 181
Marketing costs R/ha 37 47 13
Repairs and maintenance R/ha 657 696 634 579 579
Casual labour R/ha 7 7 7 7 7
Aerial spray R/ha
Other expenditure R/ha
Total variable expenditure R/ha R5 394 R5 363 R5 296 R3 795 R3 966
Total variable expenditure R/ton R1 998 R1 915 R3 531 R1 725 R2 644
3.1 Gross margin R/ha R4 763 R5 379 R3 132 R3 111 R902
3.2 Gross margin R/ton R1 764 R1 921 R2 088 R1 414 R601
Break-even yield T/ha 1.43 1.40 0.94 1.21 1.22
Break-even price R/ton R1 998 R1 915 R3 531 R1 725 R2 644
Source: SSK, GSA and BFAP, April 2019.
Gross margin comparison – Baseline: Southern Cape (Riversdal / Albertinia)
Gross margin comparison – Baseline: Southern Cape (Riversdal / Albertinia)

Gross margin per hectare: Southern Cape – Riversdal / Albertinia

Wheat sensitivity analysis
Yield (t/ha)
Producers price 2.00 2.25 2.50 2.70 3.00 3.25 3.50
R2 762 130 820 1 510 2 063 2 891 3 582 4 272
R3 012 630 1 383 2 135 2 738 3 641 4 394 5 147
R3 262 1 130 1 945 2 760 3 413 4 391 5 207 6 022
R3 512 1 630 2 508 3 385 4 088 5 141 6 019 6 897
R3 762 2 130 3 070 4 010 4 763 5 891 6 832 7 772
R4 012 2 630 3 633 4 635 5 438 6 641 7 644 8 647
R4 262 3 130 4 195 5 260 6 133 7 391 8 457 9 522
R4 512 3 630 4 758 5 885 6 788 8 141 9 269 10 397
R4 762 4 130 5 320 6 510 7 463 8 891 10 082 11 272
Barley sensitivity analysis
Yield (t/ha)
Producers price 2.00 2.25 2.50 2.80 3.00 3.25 3.50
R2 837 310 1 019 1 728 2 579 3 147 3 856 4 565
R3 087 810 1 582 2 353 3 279 3 897 4 668 5 440
R3 337 1 310 2 144 2 978 3 979 4 647 5 481 6 315
R3 587 1 810 2 707 3 603 4 679 5 397 6 293 7 190
R3 837 2 310 3 269 4 228 5 379 6 147 7 106 8 065
R4 087 2 810 3 832 4 853 6 079 6 897 7 918 8 940
R4 337 3 310 4 394 5 478 6 779 7 647 8 731 9 815
R4 587 3 810 4 957 6 103 7 479 8 397 9 543 10 690
R4 837 4 310 5 519 6 728 8 179 9 147 10 356 11 565
Canola sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R4 618 -1 832 -678 477 1 632 2 786 3 941 5 095
R4 868 -1 645 -428 790 2 007 3 224 4 441 5 658
R5 118 -1 457 -178 1 102 2 382 3 661 4 941 6 220
R5 368 -1 270 72 1 415 2 757 4 099 5 441 6 783
R5 618 -1 082 322 1 727 3 132 4 536 5 941 7 345
R5 868 -895 572 2 040 3 507 4 974 6 441 7 908
R6 118 -707 822 2 352 3 882 5 411 6 941 8 470
R6 368 -520 1 072 2 665 4 632 5 849 7 441 9 033
R6 618 -332 1 322 2 977 4 632 6 286 7 941 9 595
Canola margin above/below wheat
Yield Price (R/ton)
R4 868 R5 118 R5 368 R5 618 R5 868 R6 118 R6 368
0.50 -7 624 -7 499 -7 374 -7 249 -7 124 -6 999 -6 874
0.75 -6 407 -6 220 -6 032 -5 845 -5 657 -5 470 -5 282
1.00 -5 190 -4 940 -4 690 -4 440 -4 190 -3 940 -3 690
1.25 -3 973 -3 661 -3 348 -3 036 -2 723 -2 411 -2 098
1.50 -2 756 -2 381 -2 006 -1 631 -1 256 -881 -506
1.75 -1 539 -1 102 -664 -227 211 648 1 086
2.00 -322 178 678 1 178 1 678 2 178 2 678
2.25 895 1 458 2 020 2 583 3 145 3 708 4 270
2.50 2 112 2 737 3 362 3 987 4 612 5 237 5 862

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.
  • The cost of fuel includes pre-harvest and harvesting costs with the assumption that own machinery is used.
  • The costs for wheat, barley and oats seeds reflect a combination of own and purchased seed.
  • It is important to note that overhead costs are not included and should be accounted for. Overhead costs such as interest on production loans, labour, management and administration will vary to a large extent from producer to producer. Producers will therefore have to deduct the farm business' overhead cost from the gross margins as stipulated in the tables and figures to calculate the net income per crop.
Subscribe: receive ICBs via e-mail