AGRICULTURAL MANAGEMENT PRACTICES
GRADE 12
MEMORANDUM
NSC EXAMINATIONS
NOVEMBER 2021

SECTION A
QUESTION 1

1.1 Multiple choice
1.1.1 C ✓✓
1.1.2 B✓✓
1.1.3 A ✓✓
1.1.4 B ✓✓
1.1.5 D ✓✓
1.1.6 A ✓✓
1.1.7 B ✓✓
1.1.8 D ✓✓
1.1.9 A ✓✓
1.1.10 B ✓✓ (10 x 2)
(20)
1.2 Matching items
1.2.1 H ✓✓
1.2.2 L✓✓
1.2.3 G✓✓
1.2.4 A ✓✓
1.2.5 I ✓✓
1.2.6 D ✓✓
1.2.7 J ✓✓
1.2.8 K ✓✓
1.2.9 C ✓✓
1.2.10 B ✓✓ (10 x 2)
(20)
1.3 Agricultural terms
1.3.1 Diversification ✓
1.3.2 Soil conservation ✓
1.3.3 Communication ✓
1.3.4 Liabilities ✓
1.3.5 Receipt ✓ (5 x 1)
(5)
1.4 Underlined words
1.4.1 Deposit ✓
1.4.2 Design ✓
1.4.3 Processing ✓
1.4.4 Supply ✓
1.4.5 Smoking ✓ (5 x 1)
(5)
TOTAL SECTION A:50

QUESTION 2: PHYSICAL FARM PLANNING
2.1 Resources – Water
2.1.1 Main source of water for farmer
Rainfall ✓ (1)
2.1.2 Factors that determine the effectiveness of rainfall

  • Rainfall intensity/tempo of rainfall/how hard it rain ✓
  • Tempo of evaporation ✓
  • Seasonal distribution ✓
  • Reliability during season ✓
  • Soil condition ✓
  • Topography (slope) ✓
  • Soil type (structure & texture (sand/clay)) ✓
  • Frequency of rainfall ✓
  • Amount of rain ✓(Any 4) (4)

2.2 Veld deterioration
2.2.1 Effect of trampling on feed available in a camp

  • Feed/grazing damage✓thus less feed/grazing will be available✓
  • Decreasing in the carrying capacity ✓and less animals can be kept✓
    (Any combination of the above 2) (4)

2.2.2 Methods to overcome the feed factor during the calving season

  • Give extra feed to animals✓
  • Reduce the number of breeding animals ✓
  • Storing of feed ✓
  • Remove animals earlier (wean calves while enough feed is available) ✓
    (Any 2) (2)

2.3 Law of diminishing return
2.3.1 Agricultural term for the relationship illustrated on the graph
Law of diminishing return✓ (1)
2.3.2 Description of the term marginal yield

  • The profitable income obtained ✓
  • Above the normal yield increase ✓
  • For each of the extra input✓ (3)

2.3.3 Implications of the point marked A on the graph

  • Point where the amount of inputs ✓
    Will result in no extra profitable income ✓
  • From this point on, the farmer will start to lose money ✓
    Even with higher/increased yields✓ (4)

2.4 Planning utilization of camps
2.4.1 G ✓ (1)
2.4.2 C ✓ (1)
2.4.3 F ✓ (1)
2.4.4 A ✓ (1)
2.5 Resources – Capital
2.5.1 The main sources of capital for a farm business

  • Production capital ✓ – capital quickly obtained ✓ when goods are sold✓
  • Savings ✓ – farming profits of previous seasons ✓ that accumulate in a bank and are used as capital ✓
  • Credit ✓ – overdraft, loans or credit facility ✓ that must be paid back within a certain time ✓
  • External sources ✓ – investors, inheritance, grants etc. ✓
    (Any 2 + explanation) (6)

2.5.2 Problems related to capital as a production factor

  • Capital is scarce ✓
  • Capital is expensive, because of high interest rates ✓
  • High risks involved ✓
  • Over capitalisation can occur ✓
  • Under capitalisation can occur ✓
  • Insufficient collateral ✓
  • Additional expenditure for capital ✓ (Any 3) (3)

2.6 Comparison of planters

ASPECT CONVENTIONAL PLANTER  NO-TILL PLANTER
Cost of planter Cheaper/Lower cost ✓ Expensive/Higher cost ✓
Cultivation costs High cultivation costs ✓ Lower cultivation costs✓
Traction required Less traction/smaller tractor needed ✓ Greater pull/bigger tractor needed ✓

(6)
2.7 Factors that influence drift of spray

  • Droplet size ✓
  • Pressure ✓
  • Wind speed ✓
  • Temperature ✓
  • Humidity ✓
  • Speed of implement ✓
  • Applicator height from crop ✓ (Any 3) (3)

2.8 Challenges of agritourism in rural areas

  • Low returns on high development cost ✓
  • Low demand ✓
  • Lack of essential skills ✓
  • Dominance of mass tourism operators ✓
  • Poor infrastructure ✓ (Any 3) (3)

2.9 Niche markets

  • Small market segment✓
  • Target specific clients/customers ✓
  • Higher price range ✓
  • Specialised product ✓ (Any 3) (3)

2.10 Aspects to consider in buying used implements

  • Price in relation to a new one ✓
  • Condition of the implement ✓
  • Cost to repair or maintain the implement✓
  • Possible expansion ✓
  • Does it fit in with existing equipment/conditions ✓ (Any 3) (3)

[50]

QUESTION 3: BUSINESS PLANNING, ENTREPRENEURSHIP, MARKETING, PRICE DETERMINATION AND THE MANAGEMENT PROCESS
3.1 Main types of resources on business plan

  • Human resources✓
    The human resources available/needed in the new business venture should be mentioned ✓
  • Financial resources ✓
    • Fixed capital/infrastructure needed/available ✓
    • Floating capital needed/available ✓
    • Own capital available to help you start your business✓ (Any 1)
  • Natural resources ✓
    Availability of water and land will determine the size of your enterprise ✓

3.2 Farming system and entrepreneurship

  • Commercial farming ✓

Reasons

  • Food productions need to be increased as the world population keep on increasing ✓✓
  • Ecological agriculture needs to be taken into account as resources need to be protected ✓✓
  • Precision production as more food need to be produced from a smaller area ✓✓
  • Diversification of production and products are important as it decrease the risk ✓✓
  • Greater global competition provides the opportunity to export products✓✓
    (Any 2)

3.3 Production costs
3.3.1 Value of the break-even-point (2)
B=        R650       
    R3500 - R1000
= 2,6 ton/ha
3.3.2 Break-even-point

  • It is the number of units that must be sold at a given price ✓
  • That the total income of the farm/enterprise is equal to the total expenditure of the farm/enterprise ✓
  • If sales are higher than the break-even-point, the farm makes a profit ✓
  • If sales are lower than the break-even-point, the farm makes a loss ✓
    (Values of QUESTION 3.3.1 can be used in the explanation) (4)

3.3.3 Profit

  • profit = (yield x price) - (BEP x price)
    = (4 x R3500 ) - (2,6 x R3500)
    = R4900/ha
  • selling = 4 x R3500
    = R14000
  • cost = 2,6 x R3500
    =R9100
  • profit = R14000 - R9100
    = R4 900/ha (3)

3.4 Amount of product bought

  • The price of the product ✓
  • The need for the product ✓
  • The preferences of consumers / quality of product✓
  • The buying power of consumers ✓
  • The number of consumers ✓
  • The range of products available to the consumer ✓
  • The price of competitive products ✓
  • External factors like pandemonium among consumers ✓ (Any 4) (4)

3.5 Reasons for advertising

  • To inform people about the product and services available/rendered ✓
  • To persuade people to buy the product or use the services ✓
  • To offer special offers ✓ (3)

3.6 Marketing strategies
3.6.1 Target market
The specific customers you intend to attract/target ✓✓(2)
3.6.2 Competition
Producers selling the same product / rendering the same service ✓✓ (2)
3.6.3 Distribution

  • How to get the product from the producer to the customer marketing goals ✓✓
  • Plan how far you intend to grow with regard to sales, profits and customer satisfaction ✓✓
  • Give information on methods and timeframe of distribution ✓✓ (Any 1) (2)

3.7 Distinguish between diversification and specialisation

  DIVERSIFICATION SPECIALIZATION
Implements More implements of different kinds needed
More expenses to buy and maintain different implements
Less implements of different kinds needed
Less expenses to buy and maintain different implements
Management Difficult – knowledge of more than one production areas/Difficult to become an expert Simple – knowledge of only one production area needed/Easy to be an expert

(4)
3.8 Labour legislation
3.8.1 Worker conduct and action
Compensation for Occupational Injury and Diseases act ✓
3.8.2 Action taken against worker
Disciplinary action ✓
3.8.3 THREE disciplinary steps

  • Workers must know the actions to be taken against them ✓
  • Must refer to the offence and not to the worker ✓
  • Taken as soon as possible after the offence ✓
  • Must always be consequent / consistent ✓
  • Action must be related to the offence ✓
  • Should not interfere with the working relationship ✓ (Any 3)

3.9 Achievements made through motivation of farm workers by the farm manager

  • Leads to higher productivity ✓
  • Builds self confidence ✓
  • Promote feeling of well-being✓
  • Workers feel more appreciated ✓
  • Workers feel part of the management team ✓ (Any 3) (3)

3.10 Reasons for training farm workers

  • It can lead to promotion / more tasks ✓
  • Can do different/more tasks✓
  • To increase the knowledge and skills of the workers ✓
  • Time saving as workers can do the required job quicker ✓
  • Saves on repairs as workers know how to correctly use equipment ✓
  • Leads to higher productivity/efficiency ✓ (Any 3) (3)

3.11 Psychological needs of farm workers

  • Acceptance by others ✓
  • Being appreciated ✓
  • Being acknowledged ✓
  • Self-fulfilment ✓ (Any 2) (2)

[50]

QUESTION 4: FINANCIAL PLANNING, RECORDING, HARVESTING, VALUE ADDING, AND PACKAGING
4.1 Draw-up a budget

EXPECTED EXPENSES
ITEM QUANTITY PRICE PER UNIT (R) TOTAL PRICE (R)
Seed 2kg 400,00 800,00
Fertilizer 850kg 80,000/50kg 1360,000
Transport  17bags 5,00/50kg 85,00
Wages 2 workers 400,00 800,00
Packaging material 1500 1,50 2250,00
Transport to market 6 trips 300,00 1800.00
Total expenses     7095,00

 

EXPECTED INCOME
ITEM QUANTITY PRICE PER UNIT (R) TOTAL PRICE (R)
Product 1 500 boxes 15,00 22 500,00 
       
Total income     22 500,00 
Expected profit     15 405,00 

(10)
4.2 Balance sheet
4.2.1 Terminology

  1. Fixed Assets
    • The assets purchased for long-term use ✓ and
    • are not likely to be converted quickly into cash, ✓
  2. Depreciation
    • A reduction in the value of an asset over time✓
    • due to usage or age ✓
  3. Creditor
    A person or company to whom the farm owes money ✓✓(6)

4.2.2 Analysing income statement

  • To determine if the business is profitable ✓
  • To determine if the business runs at a loss ✓
  • If it runs at a loss – determine why and try to rectify the situation ✓
  • It runs at a profit – determine how the profit can be increased ✓
  • To compare budgeted values and to make changes to the budget ✓
    (Any 2) (2)

4.3 THREE reasons for buying processed products

  • Have a longer shelf life ✓
  • Ease of handling ✓
  • Ease of transportation ✓
  • Easier to prepare for eating ✓
  • Available out of season ✓
  • Consumer preference ✓ (Any 3) (3)

4.4 The importance of grading the products

  • To add value to the product ✓
  • To obtain better prices at the market ✓
  • To prepare product of uniform quality ✓
  • To gain trust from the consumers ✓
  • To standardize quality ✓
  • Consumer preference✓ (Any 3) (3)

4.5 Risk management
4.5.1 Manage the risk

  • It extend the original product shelf life ✓
  • Value is added to product ✓
  • Less chances of damage to the original product ✓
  • More profit could be obtained ✓ (Any 3) (3)

4.5.2 Amount of profit per bottle
Profit = selling price – break-even point
= R116,00 – R82,00 ✓
= R34,00 ✓ (2)
4.5.3 Exporting of fruit juice
OR value = R16/€1✓x €12 ✓
= R192,00 ✓ (3)
4.5.4 Influence of exchange rate on profit

  • Because of a weaker Rand, the income will increase ✓
  • With a higher income it becomes more possible to expand ✓
  • Less risk financing the expansion ✓ (Any 2) (2)

4.6 Harvesting of crops
4.6.1 Harvesting

  • Is the process whereby the produced products are removed/cut✓
  • and collected from the field/animal ✓ (2)

4.6.2 Advantages of harvesting by hand

  • Relatively cheap ✓
  • Less maintenance ✓
  • Less damage ✓
  • Products can be selected, ripe vs. non ripe products✓ (Any 3)(3)

4.6.3 Purposes for which crops are used for:

  • For selling ✓
  • Food for animals/people✓
  • Ingredients in … (medicine/cosmetics/household product) ✓
  • Manufacturing✓
  • Processing✓ (Any 4) (4)

4.7 Aspects considered when designing packaging material for agricultural products

  • Cost effective✓
  • Type of the material ✓
  • Protection of the product✓
  • Provide information to the consumers✓
  • Features to make it easy to handle✓
  • Easy to print on✓
  • Attract people’s attention (trademark/product recognition✓
  • Characteristics of the product ✓ (Any 3) (3)

4.8 Main causes of food spoilage

  • Living micro-organisms on the food✓
  • The presence of enzymes in the food ✓
  • Damage caused by insects/rodents ✓
  • Wrong handling and harvesting of the products ✓
  • Inadequate storage facilities/temperature ✓
  • Exposure to air (oxidation) ✓ (Any 4) (4)

[50]
TOTAL SECTION B: 150
GRAND TOTAL: 200

Last modified on Thursday, 08 September 2022 13:43