AGRICULTURAL MANAGEMENT PRACTICES
GRADE 12
MEMORANDUM
NATIONAL SENIOR CERTIFICATE 
NOVEMBER 2017 

SECTION A
QUESTION 1
1.1 Multiple Choice
1.1.1 C ✓✓
1.1.2 B ✓✓
1.1.3 A ✓✓
1.1.4 A ✓✓
1.1.5 D ✓✓
1.1.6 D ✓✓
1.1.7 C ✓✓
1.1.8 B ✓✓
1.1.9 C ✓✓
1.1.10 C ✓✓ (10 x 2) (20)
1.2 Matching items
1.2.1 D ✓✓
1.2.2 H ✓✓
1.2.3 G ✓✓
1.2.4 E ✓✓
1.2.5 J ✓✓
1.2.6 C ✓✓
1.2.7 A ✓✓
1.2.8 B ✓✓
1.2.9 K ✓✓
1.2.10 F ✓✓ (10 x 2)(20)
1.3 Correct agricultural terms
1.3.1 Fixed capital ✓
1.3.2 Calibration /Calibrate✓
1.3.3 Enterprise budget /Branch budget /Micro budget ✓
1.3.4 Sweet veld ✓
1.3.5 Entrepreneurship ✓
1.3.6 Time register/Time sheet ✓
1.3.7 Expiry date / sell by date / best before date / Expiring ✓
1.3.8 Planning ✓
1.3.9 Standardisation ✓
1.3.10 Invoice ✓ (10 x 1)(10)
TOTAL SECTION A: 50

SECTION B
QUESTION 2: PHYSICAL AND FINANCIAL PLANNING
2.1 Irrigation
2.1.1 THREE basic requirements of soil for irrigation purposes

• Adequate infiltration/absorption ✓
• Internal drainage/soil depth ✓
• Incline/slope/topography ✓
• Water holding capacity ✓ (Any 3) (3)

2.1.2 THREE methods to control water runoff

• Develop stable waterways ✓
• Apply contour ploughing ✓
• Develop contour ridges/terracing ✓
• Improve the plant coverage on the soils ✓
• Improve surface infiltration ✓ (Any 3) (3)

2.2 Physical effects of addition organic matter to soil

(4)
2.3 Natural pastures
2.3.1 FOUR reasons for a camp system

• To make rotational grazing possible ✓
• To make regrowth possible during resting period ✓
• To divide livestock in different herds/separate different type of animals ✓
• To prevent overgrazing due to moving animals between camps ✓
• Different veld types with the same properties can be grouped together making it easier to manage ✓
• To adhere to the veld carrying capacity ✓
• Herd health management ✓
• To manage breeding systems easier ✓ (Any 4) (4)

2.3.2 FOUR practices that lead to deterioration of veld

• Over grazing ✓
• Incorrect burning of veld ✓
• Poor veld management/ ploughing of veld ✓
• Too many vehicle movement ✓
• Poor parasite(termite) control ✓
• Allowing invader species ✓
• Ill-considered use of herbicides ✓ (Any 4) (4)

2.4 Define between the sources of capital
2.4.1 Own capital:

• Money that the farmer has saved or from the farmers’ investments ✓
• Money obtained from inheritance, grants, sponsorships ✓ (Any 1) (1)

2.4.2 Credit:

• Money borrowed/loan obtained from a financial institution and paid back with interest ✓
• Account opened at different agricultural service suppliers or agricultural organisations ✓ (Any 1) (1)

2.4.3 Production capital:
Money obtained from the selling of produced agricultural products ✓ (1)
2.5 Graph on law of diminishing return
2.5.1 The economic characteristic of soil shown in the graph
Law of diminishing returns ✓ (1)
2.5.2 Reason for the graph not starting at a yield of 0 ton/ha

• Even if no fertiliser is added to the soil ✓
• The crop will still produce a yield ✓
• From the nutrients that is naturally in soils ✓ (3)

2.6 FOUR methods to increase productivity and sustainable production on a specific land

• Adapt production to scientific methods ✓
• Make use of technology ✓
• Irrigate the land ✓
• Increase nutrient level of the land ✓
• Choose the type of farming that suits the nature of the soil ✓
• Obtain information on effective production methods ✓
• Improve the physical characteristics of the soil✓ (Any 4) (4)

2.7 Labour
2.7.1 THREE functions of a hired employee

• Physical labour functions ✓
• Supervisory functions ✓
• Management functions ✓ (3)

2.7.2 FOUR methods of improving the conditions of health and safety

• Workplace must be free of dangerous substances ✓
• Workplace must be organised in such a manner to prevent injuries ✓
• All dangerous zone must be indicated or marked ✓
• Provide training to the workers on the correct methods and use of equipment ✓
• Cover all dangerous moving parts on equipment ✓
• Indicate where safety equipment is situated ✓
• Provide a fully equipped first aid kit ✓
• Train workers on basic first aid ✓
• Provide contact number in case of emergency ✓ (Any 4) (4)

2.8 Effect of incorrect calibration on degradation

• Pollution of soil and water sources increases with too high concentration ✓
• Too high concentration can kill the natural enemies or beneficial insects ✓
• Too low concentration can increase competition amongst plants and weeds ✓
• Too high concentration destroys soil microbial population ✓
• Too high concentration can affect plant growth ✓ (Any 3) (3)

2.9 Budget
2.9.1 Identify the type of budget

• Whole farm budget/animal and crop enterprise budget ✓

Motivation

• It incorporates the budget of all enterprises on the farm/incorporates the budget for livestock and crops ✓ (2)

2.9.2 TWO reasons for compiling a budget for a farm enterprise

• Predict the expenses and revenues/predict the possible profit or loss ✓
• As a financial control measure/prevent over or under spending ✓
• To indicate areas/time of cost constrains ✓
• To determine credit needs ✓
• Use as an aid in management ✓ (Any 2) (2)

2.9.3 Calculate of items from the data given in the budget

1. Total costs of livestock enterprise
   • Total costs = R553 000 ✓ (1)
2. Total returns of livestock
   • Total returns = R1 016 000 ✓ (1)
3. Total costs for the crops enterprise
   • Total costs = R128 000 ✓ (1)
4. Total returns for crop enterprise
   • Total returns = R167 000 ✓ (1)

2.9.4 Net profit or loss

• Profit/loss = total income – total expenditure
  = R1 016 000 + R167 000 – R553 000 – R128 000 ✓/
  or (R1 016 000 + R167 000) – (R553 000 + R128 000)
  = R502 000 ✓
• It is a profit ✓

OR

• Returns = R1 016 000 + R167 000
  = R1 183 000
• Costs = R553 000 + R128 000
  = R681 000
• Profit/loss = total income – total expenditure
  = R1 183 000 – R681000 ✓
  = R502 000 ✓
• It is a profit ✓
  (NB: - Use values of 2.9.3 (a) – (d) for calculation of profit or loss)
  - If cost or return is calculated wrongly only marks for profit or loss if calculated according to cost and return. (3)

[50]

QUESTION 3: ENTREPRENEURSHIP, RECORDING, MARKETING, BUSINESS PLANNING AND ORGANISED AGRICULTURE
3.1 Entrepreneur
3.1.1 Definition of an entrepreneur

• A person who see an opportunity in the market ✓
• Take the risk in starting a new business ✓
• Using the resources available ✓
• To deliver a product or service ✓ (4)

3.1.2 FOUR criteria that should be considered

• The time it takes for the product to be ready for consumers. ✓
• The value of the product✓
• The risk involved ✓
• The uniqueness of the product✓
• Whether the business venture matches the personal skills and goals of the entrepreneur ✓
• Available resources ✓
• Markets available ✓
• The profits and returns to be made ✓ (Any 4) (4)

3.2 SWOT analyses and an example

(8)
3.3 Product of choice - All activities should relate to product of choice
Rearrange activities with reason (e.g. Milk)

• Harvesting ✓ and appropriate reason e.g. Cows being milked ✓
• Storage ✓ and appropriate reason e.g. Milk is stored in cooling tank✓
• Grading ✓ and appropriate reason e.g. Sample is taken for grading✓
• Specialised transport ✓ appropriate reason e.g. Cooling truck transport milk to processor✓
• Processing✓ appropriate reason e.g. Milk processed into various products ✓
• Packaging ✓ and appropriate reason e.g. After processing milk is bagged, bottled etc. ✓
  (Any 5 in correct order for mentioned product)

Note 

• The first activity is harvesting
• Mark according to the product
• Reason must link to the product
• Storage position is the most likely to change
• Specialised transport indicates bulk, cold storage or specialised most likely to change (10)

3.4 TWO pricing objectives which are guiding the pricing decisions

• To make profit ✓
• To have more stable prices✓
• To maintaining sale volumes ✓
• To increase the market share ✓ (Any 2) (2)

3.5 Scenario on marketing costs
3.5.1 TWO main factors determining price

• Demand ✓
• Supply ✓ (2)

3.5.2 Calculate profit at Market A

• Produce=total×risk
  =2 000×70% ✓
  =1 400 ✓
• Profit=income−expenditure
  =1 400×R40✓−50 km×R12,50×2 =R56 000−R1 250,00 =R54 750✓
  
  OR (profit calculation)

• Income=1 400×R40
  =R56 000 ✓
• Expenditure=50 km×R12,50×2
  =R1 250 ✓
• Profit=income−expenditure
  =R56 000−R1 250,00 =R54 750✓ (5)

3.5.3 Calculate profit at Market B

• Profit=income−expenditure
  =2 000×R30✓−70 km×R12,50×2 ✓ =R60 000−R1 750,00
  =R58 250 ✓
  
  OR
  
  
• Income=2 000×R30
  =R60 000 ✓
• Expenditure=70 km×2×R12,50
  =R1 750,00✓
• Profit=income−expenditure
  =R60 000−R1 750,00 =R58 250✓ (3)

3.5.4 Recommendation to farmer

• Sell produce of week 3 at Market B if not stored/highly perishable ✓
• If possible store the produce of week 3 to week 4 ✓
• Sell produce of week 4 and stored produce at Market B to obtain the highest profit ✓

OR

• Sell produce of week 3 at Market B if not stored/highly perishable ✓
• Harvest everything in week 4 for a higher profit ✓✓ (3)

3.6 Balance sheet
3.6.1 ITEMS

(6)
3.6.2 Type of a farm record prepared from assets and liabilities
Balance sheet✓(1)
3.6.3 Net worth
Net worth = Total value of assets – Total value of liabilities
= R 2 900 000,00 – R 1 200 000,00✓
= R 1 700 000,00 (2)
[50]

QUESTION 4: HARVESTING, PROCESSING, MANAGEMENT AND AGRITOURISM
4.1 Food legislation
4.1.1 FIVE specifications regarding labelling regulations

• Trade mark ✓
• Description of the product content ✓
• Pictorial representation of the contents or serving suggestions ✓
• Contact details of the manufacturer of the product ✓
• List of ingredients ✓
• The nutritional information ✓
• Quantity of produce ✓
• Possible allergies not related to product ✓ (Any 5) (5)

4.1.2 FOUR important aspects of the National Health Act, 2003 (Act 61 of 2003)

• Minimum requirements for processing premises ✓
• Transportation and handling of food ✓
• Control and prevention of notifiable diseases (food poisoning) ✓
• Regulations concerning inspections and investigations ✓ (4)

4.2 Distinguish between fermentation and decomposition
4.2.1 Fermentation

• A process facilitated by man to produce value added products ✓
• Good microbes are activated/added ✓ (2)

4.2.2 Decomposition

• A process of food spoilage (food decay) ✓
• Unwanted microbes activated ✓(2)

4.3 THREE examples of food processed through filtration

• Wine ✓
• Beer ✓
• Fruit juices ✓
• Gelatine ✓
• Vinegar ✓
• Oils✓ (Any 3) (3)

4.4 Name and describe THREE factors influencing processing

• Perishability (shelf life)✓– the more perishable the product the quicker processing must take place ✓
• Mass or raw products✓– higher masses need more sophisticated equipment for processing ✓
• Distance from markets✓– the longer distance products must travel, the more preserved the product must be ✓
• Infrastructure✓– infrastructure on the farm will determine possibility of processing and/or type of processing ✓
• Cost of processing facilities✓– capital available for processing unit or credit needed to supplement available capital ✓
• Cost of processing method✓– additional costs and the corresponding profit to the higher input ✓ (Any 3 x 2) (6)

4.5 A typical agricultural organogram structure

Rubric

• If all four is mentioned in the correct order – 2 marks ✓✓
• All four mentioned in the correct order, directions and levels clearly visible with blocks but without line or arrows – 3 marks ✓✓✓
• Correct organogram/ correct order, direction and levels with arrows/lines – 4 marks ✓✓✓✓ (4)

4.6 Control as a managerial principle
4.6.1 Definition
Supervision of activities✓ according to present schedule/planning✓ (2)
4.6.2 Method

• Regular inspections ✓
• To make sure activities are being undertaken as planned ✓ (2)

4.6.3 Quality assurance
Compare to a set of standards ✓ (1)
4.7 FOUR reasons for planning

• Important in decision making ✓
• Important to quantify future risks and uncertainties such as changes in:
  • patterns the resources ✓
  • technological and biological relationship ✓
  • prices of inputs ✓
• Risks and uncertainties ✓ (Any 4) (4)

4.8 THREE factors of decision making

• The speed with which the decisions are made ✓
• The degree of accuracy with which the decisions are taken ✓
• The acceptability of the decisions for those who are affected by them ✓ (3)

4.9 Name and describe TWO aspects of organisation

• Organising the business ✓
  • Management activities like administration and financial aspects ✓
• Organising the farming activities ✓
  • Correct combination (mix) ✓
  • and application of resources ✓ (5)

4.10 FIVE activities of agritourism

• Place of interest for agricultural exposure ✓
• An agricultural or association enterprise farm ✓
• Point of sale of products /self-harvesting of products✓
• Working holiday✓
• Farm accommodation ✓
• Game drives/off road routes ✓
• Product routes ✓
• Hunting / Fishing/ Bird watching ✓
• Hiking trials ✓ (Any 5) (5)

4.11 TWO roles of a farmer in agritourism.

• To promote the enterprise and its product ✓
• To motivate youth and women not to abandon country side ✓
• Preserving nature✓ (Any 2) (2)

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