Cost increases squeeze commercial farmers
Fin24 - Dec 5th 2011, 08:04
Cape Town – South Africa's commercial farmers' income has hardly been great, especially for those planting crops. Stock farmers have suffered heavily from stock theft and job opportunities dried up.
Gross farm income in the year to end-February last year amounted to R121.766bn, 2.2% more than the previous year. Current revenue was 3.1% up at R89.286bn, according to the latest figures from Statistics South Africa (SSA).
Revenue from crops fell 4.3%, but the other branches of farming computed by SSA grew, even if in some instances very little.
Income from animal products rose 4.4%, that from horticultural products 2.1% and that from animals 1.2%. The contribution of crops to total gross farm revenue declined from 23.4% to 21.9%.
Horticultural products still make up 24.5% of the total, animals 40.4% and animal products 11.5%.
Electricity costs shot up – from R2.1bn to R2.8bn. There was also a considerable increase in expenditure on maintenance and repairs (from R6.5bn to R7.4bn).
But the cost of fertiliser was down (R7.8bn compared with R8.3bn).
Capital expenditure on new assets was lower, but more was spent on land and construction.
The agricultural sector suffered significantly larger losses – R316.5m compared with the previous year's R206.9m.
A farmer's most valued possessions are his land and buildings. Their combined value is estimated at R81bn. The book value of agricultural assets in 2009 was R118.3bn. In 2010 there was a reduction in the book value of vehicles and tractors, in particular, as well as that of other assets. Almost half of farmers' R64bn debt is short term. Of this, 44.4% is owed to commercial banks, 32% to private individuals and only 2.9% to the Land Bank.
Although the number of jobs in the agricultural sector fell from 874?877 to 866?417, the wages account rose from R13.5bn to R15.2bn.
Cashbuild flags tough environment amid rationalisation strategy
03/09/2019 - 12:51
Building materials retailer Cashbuild weathered a tough trading environment to deliver 3% growth in operating profit for the year to end-June, boosted by an extra trading week and the addition of 11 new stores.
Dis-Chem reports double-digit sales growth
28/08/2019 - 09:28
Dis-Chem Pharmacies says sales grew 13.5% to R9.9bn in the first five months of its 2020 financial year, thanks partly to better wholesale revenues.
Wool sector on edge over Chinese ban due to foot-and-mouth
21/08/2019 - 08:57
SA’s wool industry is on tenterhooks as exporters seek clarity on a Chinese ban on imports of the fibre following an outbreak of foot-and-mouth disease earlier this year in the world’s second-biggest producer.
Walmart Q2 revenue grows 1.8% year on year
20/08/2019 - 14:13
Total revenue of Walmart for its second quarter (Q2) of Financial Year 2020 (FY20) ending July 31 hit $130.4 billion, up 1.8 percent year on year, while the net sales of Walmart International decreased 1.1 percent year on year to $29.1 billion, the company reported.
Product mix boosts revenue of Denny owner Libstar
13/08/2019 - 08:36
Consumer goods group Libstar said it managed solid volume growth for its core product offerings in the six months to end-June, but accounting changes will weigh somewhat on its interim headline earnings per share (Heps) growth.