Page 45 - GSA Annual Report / Jaarverslag 2013

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Bedryfsdienste

Industry Services

Budgeted income and cost analysis

The budgeted income and costs for the 2013/2014 winter and summer production seasons were drawn

up again. Winter crop production budgets were drawn up for several regions in March 2013, while the

summer crop budgets were finalised in August 2013.

Producers can use the appropriate budgets as basis for their own planning. This will help producers to

decide which crop would be the most profitable and what its minimum price should be to break even.

Producers can also decide for themselves whether it is worth the risk and effort to plant or not.

Table 1

gives the projected production cost and break even prices for dryland maize for the

2013/2014 production season for various production areas. According to the table, the production

costs per hectare for maize (variable and overhead cost) are the lowest in the North West Province,

while Mpumalanga has the highest production cost figures. Regarding a 4,0 ton yield the break even

price for maize ranges from R1 701 to R2 798 per hectare and highlights the difficulty producers have

to break even with current producer prices.

Production costs (continued)

Table 1: The projected production cost and break even prices of dryland maize for the

2013/2014 production season in the various production areas.

Tabel 1: Die geprojekteerde produksiekoste en gelykbreekpryse vir droëlandmielies

vir die 2013/2014-produksieseisoen vir verskillende produksie-areas.

North West

Province

(Lichtenburg)

North Western

Free State

(Bothaville)

Eastern Free

State (Reitz/

Bethlehem)

Mpumalanga

Total production

cost per hectare

6 803,38

9 085,5

10 708,09

11 193,56

Yield per hectare

Break even price (R per ton)

1 361

1 817

2 142

2 239

4,5

1 512

2 019

2 380

2 487

1 701

2 271

2 677

2 798

3,5

1 944

2 596

3 059

3 198

2 268

3 029

3 569

3 731

3 402

4 543

5 354

5 597

Noordwes

Provinsie