Triticale as an alternative to milling wheat: the case of the Western Cape Province, South Africa

The decline in the profitability of milling wheat is amongst the challenges faced by wheat producers in South Africa. The decline in profitability is hampering the ability of wheat producers to remain financially viable, and as a result, many producers have shifted their production focus to alternatives, which are believed to be more profitable. Producers in the Western Cape Province are, however, not that fortunate with the resource endowments that limit their options. Additionally, no attention has been given to the financial viability of alternatives for wheat production in the Western Cape Province. Therefore, this study examined triticale as an alternative crop. The financial viability of triticale, as compared with milling wheat, was determined by using the Agricultural Products Requirements Optimising (APR_OPT) model, coupled with a budget analysis. Results from the APR_OPT model in the form of demand and successive prices were used as inputs in the budget analysis to determine the financial viability of triticale, compared with milling wheat. Although triticale reported a positive gross margin for the period under review, its financial viability compared with milling wheat will largely depend on the prices of maize and milling wheat, respectively.