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Kliphoogte Stone Fruit Farm
Transcript of Kliphoogte Stone Fruit Farm
Capacity = Maximum 46 tons/day (2 shifts)
Risks and mitigation
Electrical shutdowns - Generator
2 Packing lines (Identical)
To be Africa’s world-class provider of quality plums and apricots for local and international customers.
Grow, package, and provide high-quality stone fruit products at competitive prices to the consumer market through innovation and value added services.
A commitment to innovation and excellence.
Investment Cost (per year)
Establishment cost per year - R100000/ha
Highest interest rate in South Africa - FNB 5 year fixed deposit at 6.5% EAR
Key Performance Indicators and Visual Management
Total sales (per market)
Return on investment
Enterprise Business Canvas
Yield per hectare
Percentage non-conforming fruit per hectare
Expenses per hectare
A commitment to exceptional product quality.
A commitment to sustainability and following environmentally friendly practices.
A commitment to eliminating waste and creating value addition for all products and services.
Operational cost - R100,000.00/ha
Income - Projected sales
Spread capital investment over 3 year period.
Develop the enterprise over a 4 year period.
Minimises the investor's risk
Return on invest - 16.68% over 15 year period.
Mass Markets: high volume, low margin goods
World plum export percentages
Bio fuel Energy
Waste -> Profit
Expand into further International Markets
Multiple Segments: appealing to wider range of groups
Single Segments: often a specialised product
The nature of the market structure determines the marketing strategy e.g. pricing, branding, product differentiation, direct selling, market penetration etc.
Increased/decreased automation on the lines
Buy second hand equipment (e.g. forklifts)
Mechanical shutdowns - Maintenance plan
Logistical (unreliable transportation companies) - increased storage area
Stone Fruit Farm
Projected cash flow
Projected distributable earnings
Adjusted for inflation
Focus on quality
Value added services
New packing warehouse
Altered packing processes
Return on investment
Projected accumulated profit
ROI - 16.68%
Repay loan in 10 years.
Break even point - 4 years.
Positive cash flow after 7 years.