43 Source: Grain SA Grain SA member services 1. Actual production cost Grain SA collected or bought data and information during December 2024 and January 2025 to determine the major maize production areas’ actual income and production costs for the 2023/2024 production season. Determining and gathering the historical actual income and production cost figures is important to the industry as it identifies the actual cost for various inputs and provides insight into the profitability of a crop. Data was collected from various associations, regularly updated, and shared with key stakeholders in the maize industry. The actual income and production cost analysis for dry land maize for the 2023/2024 production season can be seen in Table 1.1 below. The table shows that variable input costs increase from the western to the eastern parts of the country. Variable input cost in the North West province is calculated at R11 959/ton per hectare, while it is around R22 819/ton in KwaZulu-Natal. Costs of crops provides insight on profitability Income and production cost Production cost per hectare North West North West Free State Eastern Free State KwaZulu-Natal Eastern Highveld 1. Variable cost Seed 1 698,90 1 327,50 2 427 3 893 Fertiliser and lime 3 299,05 4 566 4 299 7 734 Weed and pest control 1 392,68 1 488 1 664 4 854 Fuel 1 116,66 1 377 1 670 1 675 Repairs and parts 932,44 854 1 701 1 670 Crop insurance 338,72 112,50 345 749 Casual labour 250,30 38 18 127 Permanent labour 398,39 462,50 1 235 1 486 License and insurance - - - 685 Marketing cost 288,95 115 382 - Drying and cleaning cost - 23,50 224 - Interest on production credit 126,39 521 1 200,68 951 Contract work 196,90 382 381 672 Other costs 752,07 598 1 547,20 - Total variable cost 10 791,45 11 868 17 093,88 24 496,00 2. Capital cost 1 181,91 1 486,50 1 263,30 1 049,27 Total cost per hectare 11 973,36 13 354,50 18 357,18 25 545,27 Yield (ton/ha) 2,40 3,95 6,80 9,60 3. Income Producer price (R/ton) 3 777,78 3 912,50 3 901 3 867 Producer price (R/ha) 9 066,67 15 454,38 26 526,80 37 123,20 Profit/loss/ha -2 906,69 2 099,88 8 169,62 1 206,03 Table 1.1: Actual income & production cost figures for dry land maize (2023/2024 year).
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