Die koste- en kosprysontleding tot en met katoenveselproduksie in die katoennywerheid in Suid-Afrika met spesiale verwysing na Natal

Abstract

The crucial question of the 1970 is whether or not enough cotton will be produced to meet the increasing fibre demands of a rising population at price levels competitive with synthetics on a continuing basis. Cotton has gradually lost ground and since 1968 the total world production of man- made fibres exceeded that of cotton. The success of man-made fibres can be ascribed inter alia to : a A notable characteristic of the man- made fibre industry is that it marshals huge funds for the research and promotion of the product. b In controlling quality, man- made fibres have an advantage over cotton because man- made fibres are produced by a relatively small number of highly capitalized, mechanized and strictly controlled firms while cotton producers amount to millions and are spread over more than 70 countries. c Some of the success of the man-made fibre industry can be at tributed to its ability to adjust to changing market conditions and to secure a continuous supply. d The success which producers of man- made fibres have achieved in their s ales can also be attributed to a flexible price policy .

e Man- made fibres have the added advantage over cotton of being able to reduce production cost with the application of mass production. The success of the man-made fibre has caused certain problems and bottle-necks in the cotton industry. Cotton prices have also remained virtually unchanged over the past ten years while production costs have tended to rise each year. The purpose of this survey is to calculate and analyse the production costs of seed cotton and cotton lint in Natal. Comparisons are made with other cotton producing areas in South Africa and with other countries. Eighteen farmers participated in the survey while three ginneries supplied information to ascertain the ginning cost. The production cost of seed cotton planted under irrigation and on dry-land was calculated separately. In CHAPTER 1 a synoptic picture is given of relative factors and problems in connection with cotton production in the world with special reference to steps taken by various countries to overcome certain bottle-necks. CHAPTER 2 deals with cotton production in the Republic of South Africa. Particular attention is given to the most important factors which can influence cotton production; the distinctive areas where cotton is produced as well as a description of the area where the survey of this study was done . In conclusion the marketing and fixation of cotton lint prices, in terms of the Voluntary Marketing Agreement, are discussed . CHAPTER 3 deals with previous surveys made in connection with the production cost of seed cotton.

In CHAPTER 4 certain aspects of farm management with special reference to cost accounting and the analysis of operating results, are discussed. CHAPTER 5 deals with the analysis of material costs. In CHAPTER 6 the labour costs in the production of seed cotton, cotton lint and cotton seed are discussed. Particular reference is also made to the better utilization and control of labour in the farming enterprise. CHAPTER 7 deals with overhead costs with special reference to depreciation and interest on capital. The problems of how to ascertain depreciation and interest on capital are examined and the opinion is held that the latter must be regarded as cost. In CHAPTER 8 a synoptic picture is given of the total production cost of seed cotton, cotton lint and cotton seed, while the capital investment and profitability of the enterprises concerned, are also being dealt with . In CHAPTER 9 one of the most important aids for management namely the break-even analysis, is discussed and applied. Particular attention is given to ascertain the minimum production of seed cotton and cotton lint that is required to recover the total cost of production. CHAPTER 10 deals with the final conclusions that were drawn and the recommendations that were made.