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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

Northern Cape – irrigation

Income and cost budgets for wheat, barley and canola for Northern Cape
Area Northern Cape
Crop Wheat Barley Canola
Production system Irrigation

1. Income

Yield: deterministic Ton/ha 8.00 7.50 4.00
SAFEX simulated / derived price: 2019 R/ton 4 513 4 513 5 230
Total deductions R/ton 645 520 135
– Transport differential R/ton 467 467 130
– Grade differential R/ton 72
– Marketing, handling and statutory levies R/ton 107 53 5
Price premiums / Canola back-payment (10% of contracted price) R/ton 75 523
Net farm gate price R/ton 3 867 3 825 5 618
Gross income R/ha R30 939 R28 686 R22 473

2. Variable expenditures

Contracting R/ha 1 300 1 300 1 300
Crop insurance R/ha 2 506 2 324 899
Fertilizer R/ha 8 956 7 237 4 629
Lime R/ha 1 307 1 307
Seed R/ha 1 461 1 472 684
Fuel R/ha 882 883 882
Herbicide R/ha 270 270 1 370
Insecticide R/ha 1 096 173 630
Fungicides R/ha 184 1 369
Marketing costs R/ha
Repairs and maintenance R/ha 642 642 642
Casual labour R/ha
Irrigation: Water R/ha 912 866 866
Irrigation: Electricity R/ha 2 742 2 605 2 605
Aerial spray R/ha
Other expenditure: Scheduling / Irrigation Equipment R&M R/ha 532 532 532
Total variable expenditure R/ha R22 605 R20 818 R16 007
Total variable expenditure R/ton R2 826 R2 776 R4 002
3.1 Gross margin R/ha R8 334 R7 867 R6 467
3.2 Gross margin R/ton R1 042 R1 049 R1 617
Break-even yield T/ha 5.85 5.44 2.85
Break-even price R/ton R2 826 R2 776 R4 002
Source: GWK, GSA and BFAP, April 2019.
Gross margin comparison – Baseline: Northern Cape
Gross margin comparison – Baseline: Northern Cape irrigation

Gross margin per hectare: Northern Cape

Wheat sensitivity analysis
Yield (t/ha)
Producers price 7.25 7.50 7.75 8.00 8.25 8.50 8.75
R2 867 -1 816.62 -1 100 -383 334 1 051 1 768 2 484
R3 117 -4 775 1 555 2 334 3 113 3 893 4 672
R3 367 1 808 2 650 3 492 4 334 5 176 6 018 6 859
R3 617 3 621 4 525 5 430 6 334 7 238 8 143 9 047
R3 867 5 433 6 400 7 367 8 334 9 301 10 268 11 234
R4 117 7 246 8 275 9 305 10 334 11 363 12 393 13 422
R4 367 9 058 10 150 11 242 12 334 13 426 14 518 15 609
R4 617 10 871 12 025 13 180 14 334 15 488 16 643 17 797
R4 867 12 683 13 900 15 117 16 334 17 551 18 768 19 984
Barley sensitivity analysis
Yield (t/ha)
Producers price 6.75 7.00 7.25 7.50 7.75 8.00 8.25
R2 825 -1 751 -1 045 -339 367 1 074 1 780 2 486
R3 075 -64 705 1 474 2 242 3 011 3 780 4 549
R3 325 1 624 2 455 3 286 4 117 4 949 5 780 6 611
R3 575 3 311 4 205 5 099 5 992 6 886 7 780 8 674
R3 825 4 999 5 955 6 911 7 867 8 824 9 780 10 736
R4 075 6 686 7 705 8 724 9 742 10 761 11 780 12 799
R4 325 8 374 9 455 10 536 11 617 12 699 13 780 14 861
R4 575 10 061 11 205 12 349 13 492 14 636 15 780 16 924
R4 825 11 749 12 955 14 161 15 367 16 574 17 780 18 986
Canola sensitivity analysis
Yield (t/ha)
Producers price 3.25 3.50 3.75 4.00 4.25 4.50 4.75
R4 618 -997 157 1 312 2 467 3 621 4 776 5 930
R4 868 -185 1 032 2 249 3 467 4 684 5 901 7 118
R5 118 628 1 907 3 187 4 467 5 746 7 026 8 305
R5 368 1 440 2 782 4 124 5 467 6 809 8 151 9 493
R5 618 2 253 3 657 5 062 6 467 7 871 9 276 10 680
R5 868 3 065 4 532 5 999 7 467 8 934 10 401 11 868
R6 118 3 878 5 407 6 937 8 467 9 996 11 526 13 055
R6 368 4 690 6 282 7 874 9 467 11 059 12 651 14 243
R6 618 5 503 7 157 8 812 10 467 12 121 13 776 15 430
Canola margin above/below wheat
Yield Price (R/ton)
R4 868 R5 118 R5 368 R5 618 R5 868 R6 118 R6 368
3.00 -9 736 -8 986 -8 236 -7 486 -6 736 -5 986 -5 236
3.25 -8 519 -7 706 -6 894 -6 081 -5 269 -4 456 -3 644
3.50 -7 302 -6 427 -5 552 -4 677 -3 802 -2 927 -2 052
3.75 -6 084 -5 147 -4 209 -3 272 -2 334 -1 397 -459
4.00 -4 867 -3 867 -2 867 -1 867 -867 133 1 133
4.25 -3 650 -2 588 -1 525 -463 600 1 662 2 725
4.50 -2 433 -1 308 -183 942 2 067 3 192 4 317
4.75 -1 216 -29 1 159 2 346 3 534 4 721 5 909
5.00 1 1 251 2 501 3 751 5 001 6 251 7 501

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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