Karoo Crown Beef Group — Operations & Production Plan

The operations and production plan — the abattoir, the 15,000-head feedlot, the processing operation, capacity and throughput, and the operational performance metrics.

Karoo Crown Beef Group Business PlanSection 8 › Operations & Production Plan

Section 8 · Business Plan

Operations & Production Plan

The operations and production plan — the abattoir, the 15,000-head feedlot, the processing operation, capacity and throughput, and the operational performance metrics.

8.1 Site & Facility Specification

The primary operating site has been pre-identified in the Eastern
Cape interior on a 280-hectare parcel that combines suitable topography
for abattoir and feedlot construction, sufficient water rights,
three-phase electricity reticulation, suitable distance from population
centres for hygiene and biosecurity, and good road and rail access to
both the Coega and Durban port complexes. A second site option in the
Free State has been retained as a contingency.

The facility complex comprises:

  • Abattoir building (8,400 m²) — dual-line slaughter floor,
    deboning, primal cutting and chilling rooms; designed to EU-export
    hygiene zoning specification.
  • Packaging and value-add facility (3,200 m²) — vacuum packing, MAP
    packaging, frozen pack lines and retail-ready portioning.
  • Chilled and frozen storage (4,800 m² combined) — capacity to hold
    12 days of full-throughput production for export staging.
  • By-product processing (1,400 m²) — offal washing, hide salting,
    blood and tallow processing.
  • Feedlot facility — 15,000-head capacity with paddocks, feed mill,
    water reticulation, veterinary facility and animal welfare
    infrastructure.
  • Effluent treatment plant — biological treatment of process
    effluent designed to discharge or re-use standards.
  • Solar PV plant — 2.5 MW installation providing approximately 40%
    of steady-state daytime energy demand.
  • Administration and worker amenities — offices, change rooms,
    canteen, training facility, clinic and emergency response.
  • Animal-arrival and lairage facilities — designed to RSPCA welfare
    standards and accessible for routine animal-welfare auditing.

8.2 Production Capacity & Throughput

Designed annual throughput at full ramp is 50,000 head per year,
equating to approximately 14,000 tonnes of beef. The plant is designed
for single-shift operation with capacity to upgrade to extended-shift
operation in Phase II without major capital expenditure. The production
ramp profile is:

Period Head slaughtered Tonnes beef produced Capacity utilisation
Year 1 (2026) 12,000 3,360 24%
Year 2 (2027) 24,000 6,720 48%
Year 3 (2028) 36,000 10,080 72%
Year 4 (2029) 46,000 12,880 92%
Year 5 (2030) 50,000 14,000 100%

8.3 Quality, Hygiene and Certifications

The plant will be built and operated to the following certification
standards from inception:

  • SAMIC (South African Meat Industry Company) — domestic premium
    grading.
  • EU Approval Number — for export of fresh and chilled beef to all
    27 EU member states.
  • UK BRC export approval — for retail-branded supply.
  • Halal certification (SANHA + JAKIM-recognised) — for global halal
    markets.
  • ISO 22000 Food Safety Management.
  • BRCGS Food Safety Issue 9.
  • HACCP — full hazard analysis and critical control points
    compliance.
  • Phase II: GACC (China), MAFF (Japan), MUIS (Singapore)
    certifications.

8.4 Workforce and Skills

Permanent FTE headcount at full ramp is 268, comprising 32
management, 168 production, 28 quality and veterinary, 14 logistics and
26 commercial staff. An additional 30-45 seasonal contractors are
employed during peak periods. The Group will commission a dedicated
training centre on-site, partnering with the Eastern Cape Department of
Education and the Agricultural Sector Education and Training Authority
(AgriSETA) to support employee skills development. A targeted
apprenticeship programme will train 28 emerging artisan butchers, food
technologists and veterinary assistants per year by Year 3.

8.5 Operational KPIs

Figure 19.
Figure 19. Key operational KPIs — five-year trajectory

Operational performance against the six headline KPIs above will be
tracked weekly by executive management and reported monthly to the
board. Threshold and target ranges for each KPI are defined in the
board-approved operational management framework, with linked
variable-compensation triggers for relevant management positions.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Karoo Crown Beef Group (Pty) Ltd.