The National Agricultural Marketing Council last month published its first report on agricultural input costs for the period 1996 to 2006. Fertiliser and lime contributed between 21% and 27% to total variable maize input costs over the period. Maintenance and repair costs contributed just over 10%, seed costs increased, the cost of herbicides remained at more or less 5%, and fuel and labour contributed on average 24%. A number of fertilisers were included in the report. Price increases between 1996 and 2006 were: MAP 87,8%; LAN (28) 122,4%; urea prill 108,5%; and potassium chloride granular 120,4 %.
Fertiliser prices follow biofuel demand
Most local fertiliser prices remained firm after 2002 and this trend is set to continue, mainly due to high demand from China and the US for the production of grain for the biofuel industry. Tractor sales represent 60% of all machinery sold in South Africa, and 97% of models sold are imported. The price index for tractors increased by 73,9% from 1997 to 2006. According to the report, producer prices for maize increased by 252,6% between 1990 and 2006, and the price indices for All Field Crops and Agricultural Products increased by 224% and 229,4% respectively. During the same period, the All Farming Requisites Index increased by 255,7%. – Robyn Joubert
