Customer segments

National retail programmes; regional and independent retail; fresh produce market agents; processors and food service; ginger growers buying certified planting material.

Value proposition

For retail: fresher, traceable, certified local ginger delivered weekly at agreed rand pricing. For growers: certified, indexed planting material that removes the industry’s principal disease vector.

Channels

Direct programme supply to retail distribution centres; direct sales to market agents; direct grower-to-grower sale of seed rhizome supported by agronomic advice.

Customer relationships

Annual retail programmes with quarterly technical review; seasonal seed supply agreements with trial quantities for new growers; agronomic support as a retention mechanism in the seed business.

Revenue streams

Graded fresh ginger (72% of FY2031 revenue); certified seed rhizome (25%); off-grade to processing (3%). Rotation crop output is netted against land cost.

Key resources

Leased land with documented cropping history; water use entitlements; the indexed clean seed block; irrigation, packhouse and cold chain infrastructure; technical and plant health capability.

Key activities

Land screening and rotation management; seed multiplication and indexing; irrigated field production; post-harvest washing, curing, grading and cold storage; programme account management; seed distribution.

Key partners

Landowners in Levubu and Tzaneen; agricultural input suppliers on account terms; a plant pathology laboratory for indexing; certification bodies; logistics providers; the term and seasonal lenders.

Cost structure

Field production 34%; land net of rotation income 7%; post-harvest and conditioning 13%; overheads 16%; depreciation and finance 9%. Highly operationally geared: contribution margin on the marginal kilogram is 87%.

Capital

R36.0m equity in two tranches plus R20.0m term debt, alongside a seasonal facility rising to R40.0m.

Assets and capabilities

R42.55m of irrigation, packhouse, cold store, seed facility and mechanisation, plus leases over 504 hectares and a technical team. Crucially, also R4.98m of purchased first-season rhizome, which is an operating cost but behaves like an asset: it founds the seed block that supplies every subsequent season.

Products and services

112 planted hectares producing 2,752 tonnes of commercial ginger and 691 tonnes of seed rhizome at FY2031.

Customers

Two national retail programmes taking 1,620 tonnes; regional and market channels taking 802 tonnes; approximately 90 hectares of third-party planting supplied with certified seed.

Revenue

R83.7m at FY2031, growing from R11.3m in FY2027 — a compound rate of 65% driven by planted area, not by price.

EBITDA

R25.3m at FY2031, a 30.3% margin, from R(7.2)m in FY2027.

Cash flow

Operating cash flow turns positive in FY2029. Cumulative EBITDA of R44.76m across FY2029 to FY2031 funds R17.65m of capital expenditure and repays R4.29m of term debt, leaving R25.98m of closing cash.

Investor return

Exit at FY2031 on 5.25 times EBITDA gives an enterprise value of R133.0m, an equity value of R143.3m after net cash, and R88.4m of proceeds on a 61.7% holding — 2.45 times money and a 27.5% internal rate of return.