Two Seasons Garlic Business Plan — Operating Model
The two-season planting calendar across two provinces, curing and grading, and why saleable share rises from 61% to 84%.
Operating Model
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- Overview & contents
- 1. Executive Summary
- 2. Investment Thesis
- 3. Company and Business Overview
- 4. Problem, Customer Need and Value Proposition
- 5. Products and Services
- 6. Industry Analysis
- 7. Market Analysis
- 8. Customer Analysis
- 9. Market and Competitive Landscape
- 10. Business Model
- 11. Go-to-Market Strategy
- 12. Operating Model
- 13. Management and Organisation
- 14. Strategic Plan
- 15. SWOT Analysis and Strategic Implications
- 16. Risk Analysis
- 17. ESG and Sustainability
- 18. Implementation Roadmap
- 19. Financial Model and Revenue Build
- 20. Projected Income Statement
- 21. Projected Balance Sheet
- 22. Projected Cash Flow
- 23. Capital Expenditure and Working Capital
- 24. Funding Requirement and Structure
- 25. Break-Even Analysis
- 26. Investment Case and Returns
- 27. Debt Serviceability
- 28. Sensitivity and Scenario Analysis
- 29. Key Performance Indicators and Management Dashboard
- 30. Conclusion
- A. Appendix A: Assumption Register
- B. Appendix B: Conditions Precedent to the Seed Subscription
- C. Appendix C: Glossary
- 12.1 Seed multiplication and the build path
- 12.2 Facilities, equipment and technology
- 12.3 Operating processes, quality, supply chain and compliance
- 12.4 Operational capabilities required to deliver the plan
Two blocks, one packhouse, one seed bank: the operating model is built for a 92-hectare, 1,100-tonne business from the first season, with capacity added in steps that track planted area.
12.1 Seed multiplication and the build path
|
Tonnes unless stated |
FY2027 |
FY2028 |
FY2029 |
FY2030 |
FY2031 |
|---|---|---|---|---|---|
|
Hectares planted |
12 |
28 |
48 |
70 |
92 |
|
Seed required at 1.6 t/ha |
19 |
45 |
77 |
112 |
147 |
|
Harvest |
114 |
291 |
528 |
805 |
1,086 |
|
Retained for next season |
45 |
77 |
112 |
147 |
176 |
|
Retained share of harvest |
39% |
26% |
21% |
18% |
16% |
|
Saleable crop |
69 |
214 |
416 |
658 |
910 |
|
Market value of retained seed (R m) |
2.60 |
4.53 |
6.83 |
9.13 |
11.09 |
Table 23. Seed multiplication and the build path. FY2031 retention supports a 110 ha planting in FY2032.
The seed retained in FY2031 would have been worth R11.1m had it been sold. It does not appear as a cost in the income statement, because it is a transfer of inventory rather than a cash expense, but it is real economic value withheld from the market to fund expansion. Only the first season’s planting stock is purchased, at R62/kg. Thereafter the company is self-supplying, which removes an import dependency and a phytosanitary risk but also means a serious disease event in one season compromises the next season’s planting material as well as the current crop.
12.2 Facilities, equipment and technology
|
Asset |
Location |
Capacity |
Commissioned |
Capex (R m) |
|---|---|---|---|---|
|
Irrigation and land development |
Both blocks |
92 ha drip and pivot |
Phased FY2027–31 |
7.80 |
|
Curing and drying sheds |
Both blocks |
1,200 t per season forced-air |
FY2027; expanded FY2029 |
6.35 |
|
Packhouse, grading and cold store |
Limpopo |
1,500 t/yr grading; 400 t cold store |
FY2028 |
8.60 |
|
Peeling and processing line |
Limpopo |
300 t input/yr single shift |
FY2029 |
6.90 |
|
Mechanisation |
Both blocks |
Planters, lifters, tractors, sprayers |
Phased |
7.90 |
|
Buildings, workshop and systems |
Both blocks |
Offices, workshop, traceability and ERP |
Phased |
3.15 |
Table 24. Facilities and equipment.
12.3 Operating processes, quality, supply chain and compliance
- Procurement. Fertiliser, crop protection and fuel procured annually on forward contracts where available; irrigation equipment and mechanisation via tender with two suppliers; seed self-supplied from FY2028.
- Production and quality control. Agronomic protocols per block; weekly scouting for rust and white rot; curing to neck moisture below 65%; calibre grading to retailer specification; pack-out and cull rates reported weekly.
- Logistics. Karoo harvest trucked to Limpopo packhouse (one 30-tonne load per week in season) or graded at a satellite line for regional wholesale; retail deliveries to distribution centres; export by road to SADC borders with phytosanitary certificates.
- Inventory and working capital. Cured garlic stored up to five months; inventory days rise from 60 to 80 as the Karoo crop is marketed into autumn; receivable days 30–35; payable days 30.
- IT systems. Lot-level traceability from field to pack; farm-management software; cloud accounting with monthly management accounts.
- Compliance and health and safety. GFSI-benchmarked food-safety certification of the packhouse ahead of listing; ethical-trade audit; sectoral determination compliance; chemical handling and machinery safety programmes. Budget R0.42m rising to R1.18m.
12.4 Operational capabilities required to deliver the plan
Delivering 1,086 tonnes in FY2031 requires: 92 hectares under irrigation with verified water; a curing capacity of 1,200 tonnes per season; grading capacity of 1,500 tonnes a year on a single shift; peeling capacity of 300 tonnes of input; 142 field staff at seasonal peak; and an agronomic team of ten. Each is in place at least one season before it is needed, as the roadmap in Section 19 shows. The packhouse and peeling line are deliberately sized with 30–40% headroom above FY2031 requirements because the incremental cost of capacity is low and the cost of a bottleneck in harvest season is a lost programme.