OPDT   OIL & PROTEIN SEEDS DEVELOPMENT TRUST
OAC   OILSEEDS ADVISORY COMMITTEE

OPDT
OIL & PROTEIN SEEDS DEVELOPMENT TRUST

OAC
OILSEEDS ADVISORY COMMITTEE

2022/2023 SUMMER CROPS  //  Income and Cost Budgets

KwaZulu-Natal (Bergville) – irrigation

Income and cost budgets for maize and soybeans for KwaZulu-Natal (Bergrivier)
Area KwaZulu-Natal: Bergrivier
Crop Maize Soybeans
Production system Irrigation

1. Income
Yield: deterministic Ton/ha 12.00 4.00
SAFEX simulated price / producer price: 20202322 R/ton 4 442 8 836
Total deductions R/ton 462 310
– Transport differential R/ton 389 196
– Grade differential R/ton 13 –
– Handling and commission R/ton 60 59
– Seed breeding and technology levy R/ton – 55
Price premiums R/ton – –
Net farm gate price R/ton 3 981 8 526
Gross income R/ha R47 771 R34 103

2. Variable expenditures
Contracting R/ha – –
Crop insurance R/ha 1 815 4 161
Fertilizer R/ha 13 620 4 867
Lime R/ha 655 –
Seed R/ha 4 669 1 956
Fuel R/ha 1 827 1 838
Herbicide R/ha 1 596 1 564
Insecticide / Fungicides R/ha 959 390
Marketing costs R/ha – –
Repairs and maintenance R/ha 858 579
Casual labour R/ha 530 –
Aerial spray R/ha – –
Irrigation electricity R/ha 2 749 2 340
Water R/ha 1 604 1 365
Other expenditure: scheduling/irrigation equipment R&M R/ha 608 534
Total variable expenditure R/ha R31 489 R19 594
Total variable expenditure R/ton R2 624 R4 899
3.1 Gross margin R/ha R16 282 R14 509
3.2 Gross margin R/ton R1 357 R3 627
Break-even yield T/ha 7.91 2.30
Break-even price R/ton R2 624 R4 899
Source: BFAP, GSA and individual farmers – 2022.
Gross margin comparison – baseline: KwaZulu-Natal (Bergrivier)
Figure 3.2: Gross margin comparison – Baseline: KwaZulu-Natal irrigation

Gross margin per hectare: KwaZulu-Natal (Bergville)

Maize sensitivity analysis
Yield (t/ha)
Producers price 10.50 11.00 11.50 12.00 12.50 13.00 13.50
R3 581 6 111 7 901 9 691 11 482 13 272 15 063 16 853
R3 681 7 161 9 001 10 841 12 682 14 522 16 363 18 203
R3 781 8 211 10 101 11 991 13 882 15 772 17 663 19 553
R3 881 9 261 11 201 13 141 15 082 17 022 18 963 20 903
R3 981 10 311 12 301 14 291 16 282 18 272 20 263 22 253
R4 081 11 361 13 401 15 441 17 482 19 522 21 563 23 603
R4 181 12 411 14 501 16 591 18 682 20 772 22 863 24 953
R4 281 13 461 15 601 17 741 19 882 22 022 24 163 26 303
R4 381 14 511 16 701 18 891 21 082 23 272 25 463 27 653
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.50 3.75 4.00 4.25 4.50 4.75
R8 126 6 815 8 846 10 878 12 909 14 940 16 972 19 003
R8 226 7 140 9 196 11 253 13 309 15 365 17 422 19 478
R8 326 7 465 9 546 11 628 13 709 15 790 17 872 19 953
R8 426 7 790 9 896 12 003 14 109 16 215 18 322 20 428
R8 526 8 115 10 246 12 378 14 509 16 640 18 772 20 903
R8 626 8 440 10 596 12 753 14 909 17 065 19 222 21 378
R8 726 8 765 10 946 13 128 15 309 17 490 19 672 21 853
R8 826 9 090 11 296 13 503 15 709 17 915 20 122 22 328
R8 926 9 415 11 646 13 878 16 109 18 340 20 572 22 803
Soybeans margin above/below maize
Yield Price (R/ton)
R8 226 R8 326 R8 426 R8 526 R8 626 R8 726 R8 826
3.00 -11 199 -10 899 -10 599 -10 299 -9 999 -9 699 -9 399
3.25 -9 142 -8 817 -8 492 -8 167 -7 842 -7 517 -7 192
3.50 -7 086 -6 736 -6 386 -6 036 -5 686 -5 336 -4 986
3.75 -5 029 -4 654 -4 279 -3 904 -3 529 -3 154 -2 779
4.00 -2 973 -2 573 -2 173 -1 773 -1 373 -973 -573
4.25 -916 -491 -66 359 784 1 209 1 634
4.50 1 140 1 590 2 040 2 490 2 940 3 390 3 840
4.75 3 197 3 672 4 147 4 622 5 097 5 572 6 047
5.00 5 253 5 753 6 253 6 753 7 253 7 753 8 253

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.
  • Fertiliser assumptions (kg/ha): Maize N:P:K – 212:49:56. Soybeans N:P:K – 20:36:40.
  • Other macro- and microelements such as calcium, magnesium and zinc are included in the fertiliser costs.
  • The cost of fuel includes pre-harvest and harvesting costs with the assumption that own machinery is used.
  • The cost for soybean seed reflects a combination of own and purchased seed.
  • There will be large fluctuations for insurance cost (hail) based on the associated risk in respective areas. It is advised that producers adjust this cost based on their individual premiums.
  • It is important to note that overhead costs are not included and should be accounted for.
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