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

Northern Cape – irrigation

Income and cost budgets for maize, soybeans, groundnuts and sunflower (oil) for the Northern Cape
Area Northern Cape
Crop Maize Soybeans Groundnuts Sunflower
Production system Irrigation

1. Income
Yield: deterministic Ton/ha 13.50 4.00 3.50 3.00
SAFEX simulated price / producer price: 2023 R/ton 4 442 8 836 13 499 9 787
Total deductions R/ton 505 314 63 551
– Transport differential R/ton 429 196 – 458
– Grade differential R/ton 13 – – –
– Handling and commission R/ton 63 63 63 93
– Seed breeding and technology levy R/ton – 55 – –
Price premiums R/ton – – – –
Net farm gate price R/ton 3 938 8 522 14 936 9 236
Gross income R/ha R53 162 R34 087 R53 774 R27 707

2. Variable expenditures
Contracting R/ha 1 100 1 250 3 520 1 250
Crop insurance R/ha 532 2 045 538 831
Fertilizer R/ha 18 012 10 420 13 759 9 782
Lime R/ha 759 – 518 –
Seed R/ha 5 836 2 041 3 874 878
Fuel R/ha 1 387 969 1 512 1 475
Herbicide R/ha 962 925 1 163 882
Insecticide / Fungicides R/ha 3 192 1 534 4 011 300
Marketing costs R/ha – – – –
Repairs and maintenance R/ha 590 276 806 845
Casual labour R/ha 596 – 209 –
Aerial spray R/ha 500 – – –
Irrigation electricity R/ha 4 706 4 706 4 842 3 342
Water R/ha 1 242 1 242 1 278 882
Other expenditure: scheduling/irrigation equipment R&M R/ha 839 839 2 960 629
Total variable expenditure R/ha R40 251 R26 247 R38 990 R21 096
Total variable expenditure R/ton R2 982 R6 562 R11 140 R7 032
3.1 Gross margin R/ha R12 911 R7 841 R14 784 R6 611
3.2 Gross margin R/ton R956 R1 960 R4 224 R2 204
Break-even yield T/ha 10.22 3.08 2.61 2.28
Break-even price R/ton R2 982 R6 562 R11 140 R7 032
Source: BFAP, GSA and GWK – 2022.
Gross margin comparison – baseline: Northern Cape Irrigation
Figure 3.1: Gross margin comparison – Baseline: Northern Cape irrigation

Gross margin per hectare: Northern Cape irrigation

Maize sensitivity analysis
Yield (t/ha)
Producers price 12.00 12.50 13.00 13.50 14.00 14.50 15.00
R3 538 2 204 3 973 5 742 7 511 9 280 11 048 12 817
R3 638 3 404 5 223 7 042 8 861 10 680 12 498 14 317
R3 738 4 604 6 473 8 342 10 211 12 080 13 948 15 817
R3 838 5 804 7 723 9 642 11 561 13 480 15 398 17 317
R3 938 7 004 8 973 10 942 12 911 14 880 16 848 18 817
R4 038 8 204 10 223 12 242 14 261 16 280 18 298 20 317
R4 138 9 404 11 473 13 542 15 611 17 680 19 748 21 817
R4 238 10 604 12 723 14 842 16 961 19 080 21 198 23 317
R4 338 11 804 13 973 16 142 18 311 20 480 22 648 24 817
Soybeans sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.50 3.75 4.00 4.25 4.50 4.75
R8 122 149 2 180 4 210 6 241 8 271 10 302 12 332
R8 222 474 2 530 4 585 6 641 8 696 10 752 12 807
R8 322 799 2 880 4 960 7 041 9 121 11 202 13 282
R8 422 1 124 3 230 5 335 7 441 9 546 11 652 13 757
R8 522 1 449 3 580 5 710 7 841 9 971 12 102 14 232
R8 622 1 774 3 930 6 085 8 241 10 396 12 552 14 707
R8 722 2 099 4 280 6 460 8 641 10 821 13 002 15 182
R8 822 2 424 4 630 6 835 9 041 11 246 13 452 15 657
R8 922 2 749 4 980 7 210 9 441 11 671 13 902 16 132
Groundnuts sensitivity analysis
Yield (t/ha)
Producers price 2.75 3.00 3.25 3.50 4.00 4.50 5.00
R14 436 3 045 6 866 10 688 14 509 22 152 29 795 37 437
R14 636 3 320 7 166 11 013 14 859 22 552 30 245 37 937
R14 736 3 595 7 466 11 338 15 209 22 952 30 695 38 437
R14 836 3 870 7 766 11 663 15 559 23 352 31 145 38 937
R14 936 4 145 8 066 11 988 15 909 23 752 31 595 39 437
R15 036 4 420 8 366 12 313 16 259 24 152 32 045 39 937
R15 136 4 695 8 666 12 638 16 609 24 552 32 495 40 437
R15 236 4 970 8 966 12 963 16 959 24 952 32 945 40 937
R15 336 5 245 9 266 13 288 17 309 25 352 33 395 41 437
Sunflower oil sensitivity analysis
Yield (t/ha)
Producers price 2.25 2.50 2.75 3.00 3.50 4.00 4.50
R8 836 -1 216 993 3 202 5 411 9 829 14 247 18 664
R8 936 -991 1 243 3 477 5 711 10 179 14 647 19 114
R9 036 -766 1 493 3 752 6 011 10 529 15 047 19 564
R9 136 -541 1 743 4 027 6 311 10 879 15 447 20 014
R9 236 -316 1 993 4 302 6 611 11 229 15 847 20 464
R9 336 -91 2 243 4 577 6 911 11 579 16 247 20 914
R9 436 134 2 493 4 852 7 211 11 929 16 647 21 364
R9 536 359 2 743 5 127 7 511 12 279 17 047 21 814
R9 636 584 2 993 5 402 7 811 12 629 17 447 22 264
Soybeans margin above/below maize
Yield Price (R/ton)
R8 222 R8 322 R8 422 R8 522 R8 622 R8 722 R8 822
3.00 -14 492 -14 192 -13 892 -13 592 -13 292 -12 992 -12 692
3.25 -12 436 -12 111 -11 786 -11 461 -11 136 -10 811 -10 486
3.50 -10 381 -10 031 -9 681 -9 331 -8 981 -8 631 -8 281
3.75 -8 325 -7 950 -7 575 -7 200 -6 825 -6 450 -6 075
4.00 -6 270 -5 870 -5 470 -5 070 -4 670 -4 270 -3 870
4.25 -4 214 -3 789 -3 364 -2 939 -2 514 -2 089 -1 664
4.50 -2 159 -1 709 -1 259 -809 -359 91 541
4.75 -103 372 847 1 322 1 797 2 272 2 747
5.00 1 952 2 452 2 952 3 452 3 952 4 452 4 952

Notes

  • Farm gate price for groundnuts is calculated according to assumptions based on the share of the crop that is graded according to selection grade (40/50-60/70 and 70/80), diverse and crush (human and oil).
  • 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 – 286:52:80. Soybeans N:P:K – 105:35:46. Ground nuts N:P:K – 160:45:60. Sunflower N:P:K – 100:30:50.
  • 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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