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Cover of Oilseeds Focus Vol 5 No 2 March 2019
INCOME AND COST BUDGETS 2018/2019 SUMMER CROPS SUMMARY Summary of dryland and irrigation crops
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 SUMMARY OF DRYLAND AND IRRIGATION CROPS
2018/2019 Income and Cost Budgets

Summary on gross margins

Figures 4.1, 4.2 and 4.3 provide a summary on gross margins for dryland and irrigated summer crops for the 2018/19 production season. It further compares its performance against 2018 gross margin levels. Figure 4.1 indicates the average dryland gross margin for maize, soybeans and sunflower for 9 agro-ecological regions. It is projected that maize will perform better opposed to 2018, driven by higher domestic and international maize prices which is further supported by a weaker exchange rate to the US dollar. Over the medium term, it is anticipated that a continuous shift towards feed related crops will occur. Furthermore, productivity will be critical to counterpart the cost price squeeze effect in low price scenarios.

Figure 4.1: Dryland – Deterministic gross margin comparison: 2017/18 vs 2018/19
Dryland - deterministic gross margin comparison: 2017/18 vs 2018/19
Figure 4.2: Dryland – Deterministic regional gross margin comparison: 2017/18 vs 2018/19
Dryland - deterministic regional gross margin comparison: 2017/18 vs 2018/19
Figure 4.3: Irrigation – Deterministic regional gross margin comparison: 2017/18 vs. 2018/19
Irrigation - deterministic regional gross margin comparison: 2017/18 vs 2018/19
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