AgriFeed Holdings — Customers & Go-to-Market Strategy

The customer segments across poultry, livestock, dairy and aquaculture, the go-to-market and distribution strategy, pricing, and customer acquisition and retention.

Section 5 · Business Plan

Customers & Go-to-Market Strategy

The customer segments across poultry, livestock, dairy and aquaculture, the go-to-market and distribution strategy, pricing, and customer acquisition and retention.

5.1 Customer Segments

AgriFeed will serve three principal customer segments, balanced
across volume, margin, and credit risk to optimise the blended unit
economics of the platform.

Segment	Profile	% Revenue (Y5)	Avg. Margin	Key Buying Criteria
Tier 1: Commercial Integrators	Vertically integrated poultry, dairy and pork producers; multi-site, technically sophisticated	45%	16–18%	Consistency; landed cost; technical service; traceability
Tier 2: Mid-sized Commercial Farmers	Independent broiler, layer, dairy and feedlot operations; 200–5,000 LSU equivalent	30%	20–22%	Reliability; on-farm advisory; bag/bulk flexibility; credit terms
Tier 3: Emerging & Smallholder Farmers	DALRRD- and IDC-supported emerging commercial farmers; cooperatives and aggregators	20%	22–25%	Affordability; training; financing partnership; bag size
Tier 4: SADC Export (Y4+)	Zambian, Zimbabwean and Mozambican integrators and traders	5%	23–26%	Quality consistency; reliable cross-border logistics; FX terms

5.2 Customer Acquisition Strategy

Anchor Customer Programme

AgriFeed has commenced advanced commercial discussions with two Tier
1 anchor customers — a national poultry integrator and a regional dairy
cooperative — covering combined indicative offtake of approximately
65,000 tons in Year 1, scaling to 130,000 tons by Year 3. Anchor
agreements are structured as 24-month volume-banded supply contracts
with cost-plus-margin pricing, escrowed performance bonds, and joint
product-development clauses. Final binding contracts are conditional on
financial close and are scheduled for execution in Q4 2026.

Mid-Market Sales Force

A 14-person regional sales force will be recruited and trained ahead
of commercial launch, organised across four territories: Highveld
(Mpumalanga, Gauteng), Northern (Limpopo, North West), Eastern (KZN,
eastern Free State), and Lowveld (Eastern Cape interior). Each Account
Manager carries a portfolio of 30–50 mid-market customers. The sales
force is supported by a centrally managed Technical Advisory team of
qualified animal nutritionists who conduct on-farm feed trials,
productivity audits, and ration optimisation.

Emerging-Farmer Programme — “AgriFeed Grow”

AgriFeed Grow is the Company’s flagship emerging-farmer integration
programme. Eligible smallholder and emerging-commercial farmers receive
a combined package of: (i) discounted bagged feed; (ii) on-farm
technical training; (iii) production-record templates and digital
tracking; (iv) access to a third-party micro-credit facility (R2,500 to
R75,000) underwritten by a partner financial institution; and (v)
guaranteed offtake routing for production into approved commercial
buyers. The programme targets 1,400 enrolled farmers by Year 5 and 3,200
by Year 7, with measurable B-BBEE Enterprise and Supplier Development
credits to participating customers.

5.3 Pricing Strategy

Pricing is structured on a cost-plus-margin basis with monthly index
reset against SAFEX maize and ZAR/USD soybean meal benchmarks. Headline
pricing tiers (indicative, ZAR per ton, ex-mill basis, Year 2):

Product	Tier 1 Price (R/t)	Tier 2 Price (R/t)	Tier 3 Price (R/t)
Broiler starter (crumble)	8,950	9,250	9,650
Broiler grower / finisher	8,450	8,750	9,100
Layer mash / pellet	7,950	8,250	8,580
Dairy concentrate	8,200	8,500	8,820
Beef / feedlot finisher	6,850	7,150	7,450
Pig grower	8,650	8,950	9,280

Note: Prices are indicative for Year 2 ex-mill, exclude VAT, and
are subject to monthly raw-material indexation. Tier 1 reflects volume
contracts above 12,000 t/yr per customer; Tier 2 covers 1,500–12,000
t/yr; Tier 3 covers under 1,500 t/yr including bagged-feed retail and
AgriFeed Grow participants.

5.4 Brand & Marketing

AgriFeed’s marketing budget will be deliberately disciplined — set at
0.7–0.9% of revenue, materially below industry FMCG comparators given
the B2B character of the business. Spend is concentrated in: (i)
industry trade — AFMA Symposium, NAMPO, Africa’s Big Seven, regional
poultry and dairy expos; (ii) technical content marketing — case
studies, FCR-improvement white papers, monthly nutrition bulletin in
three languages; (iii) digital — paid search and trade-publication
banners targeting commercial farmers; (iv) on-the-ground — branded silos
at customer sites, mill open days, and emerging-farmer training
caravans.

5.5 Distribution & Channel Strategy

AgriFeed will operate a hub-and-spoke distribution model from the
Phase 1 Mpumalanga mill, supplemented by three secondary depots in
KwaZulu-Natal (Pietermaritzburg), Eastern Cape (East London hinterland),
and Northern Cape / Free State (Bloemfontein). Bulk deliveries (≥24
tons) are made by a mixed in-house and third-party tipper-and-blower
fleet on dedicated routes. Bagged product (25 kg / 50 kg) is delivered
through a network of approximately 110 independent agri-retailers and
farmers’ cooperatives across the country. The distribution model is
calibrated to keep delivered cost premium versus ex-mill below 8% in
core markets and below 14% in outlying provinces.

Customer Acquisition Bottom Line

The blended customer model — 45% Tier 1 volume anchor, 30% Tier 2
mid-market margin, 20% Tier 3 emerging-farmer growth, and 5% SADC export
— produces a defensible book that combines volume security, margin
resilience, and ESG credentials simultaneously. Customer concentration
risk is explicitly capped: no single Tier 1 customer will exceed 18% of
total revenue at steady state.

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 AgriFeed Holdings (Pty) Ltd.