SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Explain costing and the viability of an agri-business 
SAQA US ID UNIT STANDARD TITLE
116237  Explain costing and the viability of an agri-business 
ORIGINATOR
SGB Primary Agriculture 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 01 - Agriculture and Nature Conservation Primary Agriculture 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 3  NQF Level 03 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2015-07-01  2018-06-30  SAQA 10105/14 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2019-06-30   2022-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
The learner achieving this unit standard will be able to do a proper costing and understand the viability of an agri-business. In addition the learner will be well positioned to extend their learning and practices into other areas of compiling an integrated budget.

The agri-business owner will benefit from this in the sense that he/she would know at what volume of sales he/she would make a profit.

Learners will understand the importance of the application of business principles in agricultural production with specific reference to finances in an agri-business.

They will be able to operate farming practices as businesses and will gain the knowledge and skills to move from a subsistence orientation to an economic orientation in agriculture. Farmers will gain the knowledge and skills to access mainstream agriculture through a business-orientated approach to agriculture. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
It is assumed that a learner attempting this unit standard will demonstrate competence against the unit standards or equivalent:
  • NQF 2: Illustrate and understand the basic layout of financial statements. 

  • UNIT STANDARD RANGE 
    Whilst range statements have been defined generically to include as wide a set of alternatives as possible, all range statements should be interpreted within the specific context of application.

    Range statements are neither comprehensive nor necessarily appropriate to all contexts. Alternatives must however be comparable in scope and complexity. These are only as a general guide to scope and complexity of what is required. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Identify the various sources of income generation available to the agri-business. 
    OUTCOME RANGE 
    Income sources refer to both on-farm and off-farm income sources. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The ability to identify the various income generation sources/enterprises available to the agri-business is demonstrated. 

    ASSESSMENT CRITERION 2 
    The demand/markets for these products/services are demonstrated. 

    ASSESSMENT CRITERION 3 
    The ability to determine the income for each income source is demonstrated. 

    SPECIFIC OUTCOME 2 
    Identify and budget for the various costs impacting on the agri-business. 
    OUTCOME RANGE 
    Fixed, variable cost and contributions. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    An ability to identify and understand the various fixed costs impacting on the agri-business is demonstrated. 

    ASSESSMENT CRITERION 2 
    An ability to identify and understand the various variable costs impacting on the selected agri-enterprises is demonstrated. 

    ASSESSMENT CRITERION 3 
    The ability to source new prices for the selected cost items (per unit) is demonstrated. 

    SPECIFIC OUTCOME 3 
    Demonstrate an understanding of the utilization of break-even budgets to calculate break-even points. 
    OUTCOME RANGE 
    Gross margin budgets, income statements, break-even budgets, and cash-flow budgets 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The ability to understand and draft a gross margin budget for each enterprise is demonstrated. 

    ASSESSMENT CRITERION 2 
    The ability to draft and understand a budgeted income statement for the whole farm is demonstrated. 

    ASSESSMENT CRITERION 3 
    The ability to draft and understand the a cash-flow budget for the whole farm is demonstrated. 

    ASSESSMENT CRITERION 4 
    An understanding of the use of break-even analysis as a management tool is demonstrated. 

    ASSESSMENT CRITERION 5 
    The ability to determine and apply the break-even point of each commodity as a management tool is demonstrated. 

    SPECIFIC OUTCOME 4 
    Demonstrate the utilisation of whole farm budgets to predict and focus financial outcomes of an agri-business. 
    OUTCOME RANGE 
    Budgeted sales refer to the volume of sales at which an acceptable return on investment is achieved. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The business goals with specific reference to profit maximisation in a business is explained. 

    ASSESSMENT CRITERION 2 
    Return on investment is explained. 

    ASSESSMENT CRITERION 3 
    The utilization of the cash-flow statement to provide an indication of financial outcomes and input to managerial decisions is demonstrated. 

    ASSESSMENT CRITERION 4 
    The break-even analysis is utilised. 

    ASSESSMENT CRITERION 5 
    The gross margin analysis technique is utilised. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    The assessment of qualifying learners against this standard should meet the requirements of established assessment principles.

    It will be necessary to develop assessment activities and tools, which are appropriate to the contexts in which the qualifying learners are working. These activities and tools may include an appropriate combination of self-assessment and peer assessment, formative and summative assessment, portfolios and observations etc.

    The assessment should ensure that all the specific outcomes, critical cross-field outcomes and essential embedded knowledge are assessed.

    The specific outcomes must be assessed through observation of performance. Supporting evidence should be used to prove competence of specific outcomes only when they are not clearly seen in the actual performance.

    Essential embedded knowledge must be assessed in its own right, through oral or written evidence and cannot be assessed only by being observed.

    The specific outcomes and essential embedded knowledge must be assessed in relation to each other. If a qualifying learner is able to explain the essential embedded knowledge but is unable to perform the specific outcomes, they should not be assessed as competent. Similarly, if a qualifying learner is able to perform the specific outcomes but is unable to explain or justify their performance in terms of the essential embedded knowledge, then thy should not be assessed as competent.

    Evidence of the specified critical cross-field outcomes should be found both in performance and in the essential embedded knowledge.

    Performance of specific outcomes must actively affirm target groups of qualifying learners, not unfairly discriminate against them. Qualifying learners should be able to justify their performance in terms of these values.
  • Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines in the relevant qualification and the agreed ETQA procedures. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    The person is able to demonstrate a basic knowledge of:
  • Fixed and variable costs.
  • Break-even analysis.
  • Cash-flow budgets.
  • Gross margin analysis.
  • Budgeted sales.
  • Demand driven production.
  • The purpose and importance of:
    - Cash in a business.
    - Profit.
    - Correct amount of income to be a viable business.
    - A basic understanding of capital in agri-business. 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Problem solving relates to all specific outcomes. 

    UNIT STANDARD CCFO ORGANISING 
    Self-organisation and management relates to all specific outcomes. 

    UNIT STANDARD CCFO COLLECTING 
    Information evaluation relates to all specific outcomes. 

    UNIT STANDARD CCFO SCIENCE 
    Use science and technology relates to all specific outcomes. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Inter-relatedness of systems relates to all specific outcomes. 

    UNIT STANDARD CCFO CONTRIBUTING 
    Self-development relates to all specific outcomes. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  49048   National Certificate: Animal Production  Level 3  NQF Level 03  Reregistered  2018-06-30  AgriSETA 
    Core  49052   National Certificate: Plant Production  Level 3  NQF Level 03  Reregistered  2018-06-30  AgriSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Atom Agric and Training (Pty) Ltd 
    2. Balemi Consulting Pty Ltd 
    3. Bathopele HR and Management Consultants 
    4. Boikgantsho Consulting & Events 
    5. Bumunhu Services Providers Cc 
    6. Cedara College of Agriculture 
    7. Elsenburg Agricultural Training Institute 
    8. Impact Plus Training Consultants 
    9. KayDee Project Management Cc 
    10. KMK Training Services (PTY) Ltd 
    11. Laezonia Horticulture (Pty) Ltd 
    12. Leruo ke Matla Training and Enterprise Development Services 
    13. Mananthatshema Skills Dev. Centre 
    14. Matotomana Training & Gen Trading 
    15. Mobile Agri Skills Development and Training NPC 
    16. Morwa Agri-development cc 
    17. Mvelo Consultant 
    18. National Institute For The Deaf 
    19. SA Agri Academy 
    20. Sekhukhune FET College - Central Office 
    21. Setlakala Business Development 
    22. Skills Fusion 
    23. Suidwes Beleggings Eiendoms Beperk 
    24. Tompi Seleka Agricultural College 
    25. TPN Training and Recruitment cc 
    26. Tripple R Training Provider 
    27. Vari Consulting 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.