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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 oats for Moorreesburg, Malmesbury and Porterville
Area Moorreesburg, Malmesbury and Porterville
Crop Wheat Canola Oats
Production system Dryland

1. Income

Yield: deterministic Ton/ha 3.00 1.50 2.70
SAFEX simulated / derived price: 2019 R/ton 4 513 5 230 3 144
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
Price premiums / Canola back-payment (10% of contracted price) R/ton 523 5
Net farm gate price R/ton 3 762 5 748 3 139
Gross income R/ha R11 285 R8 622 R8 476

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 32 28 28
Fertilizer R/ha 2 446 2 220 1 747
Lime R/ha 149 148 148
Seed R/ha 637 754 398
Fuel R/ha 519 448 488
Herbicide R/ha 994 565 419
Insecticide R/ha 105 131 83
Fungicides R/ha 438 272 302
Marketing costs R/ha 37 13 37
Repairs and maintenance R/ha 750 658 694
Casual labour R/ha 7 7 7
Aerial spray R/ha
Other expenditure R/ha 90 90 90
Total variable expenditure R/ha R6 204 R5 333 R4 440
Total variable expenditure R/ton R2 068 R3 556 R1 644
3.1 Gross margin R/ha R5 082 R3 289 R4 036
3.2 Gross margin R/ton R1 694 R2 193 R1 495
Break-even yield T/ha 1.65 0.93 1.41
Break-even price R/ton R2 068 R3 556 R1 644
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 – Moorreesburg, Malmesbury and Porterville

Wheat sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 2.75 3.00 3.25 3.50 3.75
R2 762 10 701 1 391 2 082 2 772 3 462 4 153
R3 012 573 1 326 2 079 2 832 3 584 4 337 5 090
R3 262 1 135 1 951 2 766 3 582 4 397 5 212 6 028
R3 512 1 698 2 576 3 454 4 332 5 209 6 087 6 965
R3 762 2 260 3 201 4 141 5 082 6 022 6 962 7 903
R4 012 2 823 3 826 4 829 5 832 6 834 7 837 8 840
R4 262 3 385 4 451 5 516 6 582 7 647 8 712 9 778
R4 512 3 948 5 076 6 204 7 332 8 459 9 587 10 715
R4 762 4 510 5 701 6 891 8 082 9 272 10 462 11 653
Canola sensitivity analysis
Yield (t/ha)
Producers price 0.75 1.00 1.25 1.50 1.75 2.00 2.25
R4 748 -1 772 -585 602 1 789 2 976 4 163 5 350
R4 998 -1 585 -335 914 2 164 3 414 4 663 5 913
R5 248 -1 397 -85 1 227 2 539 3 851 5 163 6 475
R5 498 -1 210 165 1 539 2 914 4 289 5 663 7 038
R5 748 -1 022 415 1 852 3 289 4 726 6 163 7 600
R5 998 -835 665 2 164 3 664 5 164 6 663 8 163
R6 248 -647 915 2 477 4 039 5 601 7 163 8 725
R6 498 -460 1 165 2 789 4 414 6 039 7 663 9 288
R6 748 -272 1 415 3 102 4 789 6 476 8 163 9 850
Canola margin above/below wheat
Yield Price (R/ton)
R4 998 R5 248 R5 498 R5 748 R5 998 R6 248 R6 498
0.50 -7 916 -7 791 -7 666 -7 541 -7 416 -7 291 -7 166
0.75 -6 666 -6 479 -6 291 -6 104 -5 916 -5 729 -5 541
1.00 -5 417 -5 167 -4 917 -4 667 -4 417 -4 167 -3 917
1.25 -4 167 -3 855 -3 542 -3 230 -2 917 -2 605 -2 292
1.50 -2 918 -2 543 -2 168 -1 793 -1 418 -1 043 -668
1.75 -1 668 -1 230 -793 -355 82 520 957
2.00 -418 82 582 1 082 1 582 2 082 2 582
2.25 831 1 394 1 956 2 519 3 081 3 644 4 206
2.50 2 081 2 706 3 331 3 956 4 581 5 206 5 831

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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