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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 and canola for Rooi Karoo
Area Rooi Karoo
Crop Wheat Canola
Production system Dryland

1. Income

Yield: deterministic Ton/ha 2.15 1.10
SAFEX simulated / derived price: 2019 R/ton 4 513 5 230
Total deductions R/ton 751 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
Net farm gate price R/ton 3 762 5 748
Gross income R/ha R8 088 R6 323

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 23 21
Fertilizer R/ha 1 572 1 693
Lime R/ha 133 180
Seed R/ha 546 880
Fuel R/ha 501 405
Herbicide R/ha 772 444
Insecticide R/ha 105 188
Fungicides R/ha 269 99
Marketing costs R/ha 37 13
Repairs and maintenance R/ha 591 516
Casual labour R/ha 7 7
Aerial spray R/ha
Other expenditure R/ha 90
Total variable expenditure R/ha R4 645 R4 445
Total variable expenditure R/ton R2 161 R4 041
3.1 Gross margin R/ha R3 442 R1 878
3.2 Gross margin R/ton R1 601 R1 707
Break-even yield T/ha 1.23 0.77
Break-even price R/ton R2 161 R4 041
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 – Rooi Karoo

Wheat sensitivity analysis
Yield (t/ha)
Producers price 1.50 1.75 2.00 2.15 2.25 2.50 2.75
R2 762 -503 188 878 1 292 1 569 2 259 2 949
R3 012 -128 625 1 378 1 830 2 131 2 884 3 637
R3 262 247 1 063 1 878 2 367 2 694 3 509 4 324
R3 512 622 1 500 2 378 2 905 3 256 4 134 5 012
R3 762 997 1 938 2 878 3 442 3 819 4 759 5 699
R4 012 1 372 2 375 3 378 3 980 4 381 5 384 6 387
R4 262 1 747 2 813 3 878 4 517 4 944 6 009 7 074
R4 512 2 122 3 250 4 378 5 055 5 506 6 634 7 762
R4 762 2 497 3 688 4 878 5 592 6 069 7 259 8 449
Canola sensitivity analysis
Yield (t/ha)
Producers price 0.50 0.75 1.00 1.10 1.25 1.50 1.75
R4 748 -2 071 -884 303 778 1 490 2 678 3 865
R4 998 -1 946 -696 553 1 053 1 803 3 053 4 302
R5 248 -1 821 -509 803 1 328 2 115 3 428 4 740
R5 498 -1 696 -321 1 053 1 603 2 428 3 803 5 177
R5 748 -1 571 -134 1 303 1 878 2 740 4 178 5 615
R5 998 -1 446 54 1 553 2 153 3 053 4 553 6 052
R6 248 -1 321 241 1 803 2 428 3 365 4 928 6 490
R6 498 -1 196 429 2 053 2 703 3 678 5 303 6 927
R6 748 -1 071 616 2 303 2 978 3 990 5 678 7 365
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 -6 638 -6 575 -6 513 -6 450 -6 388 -6 325 -6 263
0.50 -5 388 -5 263 -5 138 -5 013 -4 888 -4 763 -4 638
0.75 -4 139 -3 951 -3 764 -3 576 -3 389 -3 201 -3 014
1.00 -2 889 -2 639 -2 389 -2 139 -1 889 -1 639 -1 389
1.10 -2 389 -2 114 -1 839 -1 564 -1 289 -1 014 -739
1.25 -1 639 -1 327 -1 014 -702 -389 -77 236
1.50 -390 -15 360 735 1 110 1 485 1 860
1.75 860 1 297 1 735 2 172 2 610 3 047 3 485
2.00 2 109 2 609 3 109 3 609 4 109 4 609 5 109

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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