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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 Southern Swartland
Area Southern Swartland
Crop Wheat Canola
Production system Dryland

1. Income

Yield: deterministic Ton/ha 3.30 1.65
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 R12 414 R9 485

2. Variable expenditures

Contracting R/ha
Crop insurance R/ha 35 31
Fertilizer R/ha 2 742 2 498
Lime R/ha 180 180
Seed R/ha 668 880
Fuel R/ha 528 404
Herbicide R/ha 995 565
Insecticide R/ha 105 131
Fungicides R/ha 554 272
Marketing costs R/ha 37 13
Repairs and maintenance R/ha 757 658
Casual labour R/ha 7 7
Aerial spray R/ha
Other expenditure R/ha 90 90
Total variable expenditure R/ha R6 697 R5 728
Total variable expenditure R/ton R2 029 R3 472
3.1 Gross margin R/ha R5 717 R3 756
3.2 Gross margin R/ton R1 732 R2 277
Break-even yield T/ha 1.78 1.00
Break-even price R/ton R2 029 R3 472
Source: SSK, 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 – Swartland

Wheat sensitivity analysis
Yield (t/ha)
Producers price 2.50 2.75 3.00 3.30 3.50 3.75 4.00
R2 762 207 898 1 588 2 417 2 969 3 659 4 350
R3 012 832 1 585 2 338 3 242 3 844 4 597 5 350
R3 262 1 457 2 273 3 088 4 067 4 719 5 534 6 350
R3 512 2 082 2 960 3 838 4 892 5 594 6 472 7 350
R3 762 2 707 3 648 4 588 5 717 6 469 7 409 8 350
R4 012 3 332 4 335 5 338 6 542 7 344 8 347 9 350
R4 262 3 957 5 023 6 088 7 367 8 219 9 284 10 350
R4 512 4 582 5 710 6 838 8 192 9 094 10 222 11 350
R4 762 5 207 6 398 7 588 9 017 9 969 11 159 12 350
Canola sensitivity analysis
Yield (t/ha)
Producers price 1.00 1.25 1.50 1.65 1.75 2.00 2.25
R4 748 -980 207 1 394 2 106 2 581 3 768 4 955
R4 998 -730 519 1 769 2 519 3 019 4 268 5 518
R5 248 -480 832 2 144 2 931 3 456 4 768 6 080
R5 498 -230 1 144 2 519 3 344 3 894 5 268 6 643
R5 748 20 1 457 2 894 3 756 4 331 5 768 7 205
R5 998 270 1 769 3 269 4 169 4 769 6 268 7 768
R6 248 520 2 082 3 644 4 581 5 206 6 768 8 330
R6 498 770 2 394 4 019 4 994 5 644 7 268 8 893
R6 748 1 020 2 707 4 394 5 406 6 081 7 768 9 455
Canola margin above/below wheat
Yield Price (R/ton)
R4 998 R5 248 R5 498 R5 748 R5 998 R6 248 R6 498
0.75 -7 696 -7 509 -7 321 -7 134 -6 946 -6 759 -6 571
1.00 -6 447 -6 197 -5 947 -5 697 -5 447 -5 197 -4 947
1.25 -5 197 -4 885 -4 572 -4 260 -3 947 -3 635 -3 322
1.50 -3 948 -3 573 -3 198 -2 823 -2 448 -2 073 -1 698
1.65 -3 198 -2 785 -2 373 -1 960 -1 548 -1 135 -723
1.75 -2 698 -2 261 -1 823 -1 386 -948 -511 -73
2.00 -1 448 -948 -448 52 552 1 052 1 552
2.25 -199 364 926 1 489 2 051 2 614 3 176
2.50 1 051 1 676 2 301 2 926 3 551 4 176 4 801

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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