Levubu Root Business Plan — Products and Services
Fresh market ginger and certified seed rhizome, and the specification and grading behind each line.
Products and Services
Jump to section
- 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 and Sizing
- 8. Customer Analysis
- 9. Competitive Landscape
- 10. Business Model
- 11. Go-to-Market Strategy
- 12. Operating Model
- 13. Management and Organisation
- 14. Strategic Plan
- 15. SWOT Analysis
- 16. Risk Analysis
- 17. ESG and Sustainability
- 18. Implementation Roadmap
- 19. Financial Plan
- 20. Assumptions Framework
- 21. Funding Requirement and Structure
- 22. Break-Even and Debt Serviceability
- 23. Investment Case and Valuation
- 24. Sensitivity and Scenario Analysis
- 25. Key Performance Indicators and Management Dashboard
- 26. Conclusion
- A. Appendix A: Assumption Register
- B. Appendix B: Conditions Precedent to Drawdown
- C. Appendix C: Index of Exhibits and Tables
- D. Appendix D: Glossary
- 5.1 Product portfolio
- 5.2 Why the seed block is managed as a separate production system
- 5.3 Capacity and scalability
The company sells three products from two production systems. The commercial ginger blocks produce graded fresh ginger and off-grade material; the clean seed block produces certified seed rhizome, of which the majority is retained internally and only the surplus is sold.
5.1 Product portfolio
|
Product |
Customer need |
FY2031 price |
FY2031 volume |
FY2031 revenue |
Gross margin characteristics |
|---|---|---|---|---|---|
|
Graded fresh ginger |
Fresh, traceable, retail-ready product with usable shelf life |
R25.00/kg |
2,422 t |
R60.6m |
Absorbs the full field and post-harvest cost; margin driven by yield and marketable share |
|
Certified seed rhizome |
Disease-tested, indexed planting material at commercial volume |
R76.00/kg |
271 t |
R20.6m |
Highest margin per hectare in the plan despite a 22% field cost premium and R5.00/kg conditioning cost |
|
Off-grade and processing ginger |
Bulk ginger of consistent quality for paste, juice, extract and seasoning |
R7.80/kg |
330 t |
R2.6m |
Loss-limiting rather than profitable; recovers value from the 12% of output that fails retail specification |
|
Rotation crop output |
Maize, soya and cover crop production from resting ground |
— |
392 ha |
R2.0m |
Recovers approximately 26% of the lease cost on resting land; shown as a cost offset rather than revenue |
Table 9. Product portfolio at FY2031. Rotation crop output is netted against land cost throughout this plan.
5.2 Why the seed block is managed as a separate production system
The clean seed block is not simply a portion of the crop set aside. It is agronomically different and it costs 22% more per hectare to run. Spacing is wider to reduce plant-to-plant transmission and to allow inspection. Plant health monitoring is continuous rather than periodic. Mother material is indexed, tested for Ralstonia, Fusarium and nematode load, with results recorded per block. Harvest is timed for rhizome maturity and bud viability rather than for maximum fresh weight, which costs roughly 8% of yield. Sanitation between the seed block and the commercial blocks is one-directional: equipment, footwear and people move from seed to commercial, never the reverse.
|
Clean seed block |
FY2027 |
FY2028 |
FY2029 |
FY2030 |
FY2031 |
|---|---|---|---|---|---|
|
Seed block area (hectares) |
8 |
12 |
16 |
20 |
24 |
|
Yield (tonnes per hectare) |
23.9 |
25.8 |
27.6 |
29.4 |
31.3 |
|
Seed block output (tonnes) |
168 |
275 |
397 |
536 |
691 |
|
Retained for next season’s planting |
138 |
198 |
264 |
336 |
420 |
|
Surplus sold as certified seed |
30 |
77 |
133 |
200 |
271 |
|
Seed revenue (R million) |
2.07 |
5.40 |
9.61 |
14.79 |
20.57 |
|
Share of total revenue |
18% |
23% |
25% |
25% |
25% |
|
Share of planted area |
29% |
26% |
24% |
23% |
21% |
Table 10. Seed block output, retention and surplus. Retention equals the following season’s total planted area at 3 tonnes per hectare.
5.3 Capacity and scalability
Packhouse throughput is sized ahead of demand. The first line is commissioned in FY2027 with a nominal capacity of 1,600 tonnes a season against a first-season crop of 458 tonnes, because a packhouse cannot be commissioned in the harvest window and because the alternative, outsourcing the first two seasons, would forfeit control of exactly the post-harvest handling that determines marketable share. A second line and a cold store extension are added in FY2029 and FY2030, taking capacity to approximately 3,600 tonnes.
Scalability is constrained by rhizome, not by capacity. The seed block supports 140 hectares in FY2032 against 112 in FY2031, a 25% expansion, and that rate is the ceiling regardless of how much capital is available or how much packhouse capacity is installed. Growing faster requires buying in third-party planting material, which reintroduces the disease exposure the whole model is designed to remove. The board reserves that decision for exactly that reason.