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
On this page

  • 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.

Revenue by product across the five seasons, with the certified seed share of total revenue marked
Figure 11. Revenue by product across the five seasons, with the certified seed share of total revenue marked.

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.

Seed block output split between rhizome retained for the next season's planting and surplus available for sale
Figure 12. Seed block output split between rhizome retained for the next season's planting and surplus available for sale.

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.