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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 Income and Cost Budgets

Western Cape – dryland

Income and cost budgets for wheat, canola and lupins for Darling-vlakte – Hopefield (Sandveld region)
Area Darling-vlakte – Hopefield (Sandveld region)
Crop Wheat Canola Lupins
Production system Dryland

1. Income

Yield: deterministic Ton/ha 2.35 1.20 1.35
SAFEX simulated / derived price: 2019 R/ton 4 513 5 230 3 250
Total deductions R/ton 751 5 5
– Transport differential R/ton 580
– Grade differential R/ton 64
– Marketing, handling and statutory levies R/ton 107 5 5
Price premiums / Canola back-payment (10% of contracted price) R/ton 523
Net farm gate price R/ton 3 762 5 748 3 245
Gross income R/ha R8 840 R6 898 R4 381

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 25 23 14
Fertilizer R/ha 2 062 1 942 459
Lime R/ha 122 148 144
Seed R/ha 577 754 582
Fuel R/ha 529 375 380
Herbicide R/ha 846 444 518
Insecticide R/ha 105 188 72
Fungicides R/ha 269 99 86
Marketing costs R/ha 37 13
Repairs and maintenance R/ha 596 476 505
Casual labour R/ha 7 7 7
Aerial spray R/ha
Other expenditure R/ha 90 90
Total variable expenditure R/ha R5 264 R4 557 R2 768
Total variable expenditure R/ton R2 240 R3 798 R2 050
3.1 Gross margin R/ha R3 576 R2 341 R1 613
3.2 Gross margin R/ton R1 522 R1 950 R1 195
Break-even yield T/ha 1.40 0.79 0.85
Break-even price R/ton R2 240 R3 798 R2 050
Source: Kaap Agri, Overberg Agri, GSA and BFAP, April 2019.
Gross margin comparison – Baseline: Southern Cape (Swartland)
Gross margin comparison – Baseline: Western Cape (Swartland)

Gross margin per hectare: Western Cape – Darling-vlakte – Hopefield

Wheat sensitivity analysis
Yield (t/ha)
Producers price 1.50 1.75 2.00 2.35 2.50 2.75 3.00
R2 762 -1 122 -431 259 1 226 1 640 2 330 3 021
R3 012 -747 6 759 1 813 2 265 3 018 3 771
R3 262 -372 444 1 259 2 401 2 890 3 705 4 521
R3 512 3 881 1 759 2 988 3 515 4 393 5 271
R3 762 378 1 319 2 259 3 576 4 140 5 080 6 021
R4 012 753 1 756 2 759 4 163 4 765 5 768 6 771
R4 262 1 128 2 194 3 259 4 751 5 390 6 455 7 521
R4 512 1 503 2 631 3 759 5 338 6 015 7 143 8 271
R4 762 1 878 3 069 4 259 5 926 6 640 7 830 9 021
Canola sensitivity analysis
Yield (t/ha)
Producers price 0.50 0.75 1.00 1.20 1.50 1.75 2.00
R4 748 -2 183 -996 191 1 141 2 565 3 752 4 939
R4 998 -2 058 -809 441 1 441 2 940 4 190 5 439
R5 248 -1 933 -621 691 1 741 3 315 4 627 5 939
R5 498 -1 808 -434 941 2 041 3 690 5 065 6 439
R5 748 -1 683 -246 1 191 2 341 4 065 5 502 6 939
R5 998 -1 558 -59 1 441 2 641 4 440 5 940 7 439
R6 248 -1 433 129 1 691 2 941 4 815 6 377 7 939
R6 498 -1 308 316 1 941 3 241 5 190 6 815 8 439
R6 748 -1 183 504 2 191 3 541 5 565 7 252 8 939
Canola margin above/below wheat
Yield Price (R/ton)
R4 998 R5 248 R5 498 R5 748 R5 998 R6 248 R6 498
0.25 -6 884 -6 821 -6 759 -6 696 -6 634 -6 571 -6 509
0.50 -5 634 -5 509 -5 384 -5 259 -5 134 -5 009 -4 884
0.75 -4 384 -4 197 -4 009 -3 822 -3 634 -3 447 -3 259
1.00 -3 135 -2 885 -2 635 -2 385 -2 135 -1 885 -1 635
1.20 -2 135 -1 835 -1 535 -1 235 -935 -635 -335
1.50 -636 -261 114 489 864 1 239 1 614
1.75 614 1 051 1 489 1 926 2 364 2 801 3 239
2.00 1 863 2 363 2 863 3 363 3 863 4 363 4 863
2.25 3 113 3 676 4 238 4 801 5 363 5 926 6 488

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.
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