A Stepwise Analysis of Production Returns and Cost Distribution for Chinese Cabbage Produced Under Irrigation in South Africa

B Taruvinga,P Ndou,C P Du Plooy,K Seetseng,T D Ramusandiwa

doi:10.5539/jas.v13n1p88

Abstract

Cultivation of indigenous crops for food and nutritional security has emerged as a topic of interest in South Africa. Commercial cultivation of indigenous crops is promoted especially among smallholder farmers because of their nutritional value and their ability to adapt to marginal soil and climatic conditions. Support for commercial production of specific crops among farmers necessitates the need for optimum use of inputs in production. In order to evaluate optimum input use in production, this study established the profitability and production costs of one of the indigenised leafy vegetables in South Africa, Chinese cabbage, using gross margin analysis. Production costs and profitability evaluations are fundamental tools for analysing cash flow and investment options. The study was based on field trials on different levels of fertilizer (NPK application). The results of the study show that at low production level (10.1 t ha-1), gross income is less than total variable costs (TVC), resulting in a negative gross margin. A movement from low production to medium production (26.1 t ha-1) results in an increase in gross margin, from -R16,664.19 to R29,091.99. The highest gross margin of R82,807.07 is obtained at high production level (44.5 t ha-1). The study supports an interdisciplinary evaluation approach (agronomy and economics) when analysing field trials.

Highlights

The global agricultural sector faces increasing pressure to produce additional volumes of food to meet the rising demand, resulting from growth in population, urbanisation and rising per capita incomes
At low production levels (10.1 t ha-1), gross income is less than total variable costs (TVC), resulting in a negative gross margin of -R16,664.19
Nitrogen results in lower fresh leaf yield, which leads to negative gross margins

Summary

Introduction

The global agricultural sector faces increasing pressure to produce additional volumes of food to meet the rising demand, resulting from growth in population, urbanisation and rising per capita incomes. Two options that are available for increasing food production are clearing additional land for agriculture or intensifying production on existing land. The former is not always preferred because it is not always feasible and is associated with several high ecological and social trade-offs (Tilman et al, 2011). Several approaches for increasing food production and productivity to meet rising food demands have always been under discussion (Dobermann & Nelson, 2013; Ebert, 2014; Tilman et al, 2011). Commercial production of indigenous crops (grains, vegetables and fruit crops) is promoted in the country (DAFF, 2013; Macaskill, 2017)

Methods

Results

Conclusion