Cattle Baron Master Business Plan — Funding

R2.20m founder equity, a R3.40m targeted Blended Finance grant and R13.07m of Land Bank and asset finance across the build.

Funding

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12.1 Sources and applications
12.2 Use of funds
12.3 Year 1 capital
12.4 Year 2 capital
12.5 Year 3 capital
12.6 Year 4 capital
12.7 Year 5 capital

Figure 11. Funding by year and type. Grants carry a substantial share of the early build; Land Bank facilities carry the later expansion.

Instrument	What it provides	How to approach it
Blended Finance Scheme (DALRRD and Land Bank)	Conditional grant combined with a loan. Smallholders may receive up to 60% of the blended amount as non-repayable grant. Requires at least 20 of 50 points on DALRRD’s Economic Benefits Criteria scorecard, and the grant cannot be approved standalone.	Through Land Bank, the IDC or a participating commercial bank. Apply a full year ahead.
Land Bank production and expansion facilities	Working capital and expansion finance for established agricultural operations.	Requires demonstrated production history, which is why these facilities sit in Years 2 to 5 rather than Year 1.
Livestock and asset finance	Foundation herd, vehicles, handling equipment.	Secured on the asset. Livestock finance is available but lenders will want the herd branded, insured and traceable.
Founder equity	R2.20 million at inception.	Lenders expect meaningful own contribution in agriculture, particularly where the primary asset is mobile.

A warning about the Blended Finance Scheme

In June 2026 Parliament’s Portfolio Committee on Agriculture reported that the scheme requires roughly R1.5 billion a year but was allocated only R613 million for 2026/27, and that Land Bank had over-committed available funds. Government has separately reported R7.8 billion provided to black producers through the scheme in partnership with Land Bank and commercial banks, so the instrument is real and substantial — but it is heavily oversubscribed. This plan depends on it for R3.40 million across Years 1 and 3, and the return analysis in Section 20 shows that without the grant the founder’s five-year return is negative. Apply early, apply through more than one participating institution, and hold a commercial fallback. Be prepared to hold the herd at its current size rather than over-borrow: a herd of 250 cows that is fully funded is a better business than one of 450 that is not.

12.1 Sources and applications

Source	R’000	Share	Character
Founder equity	2 200	11.8%	At inception; the credibility test for every subsequent application
Blended Finance grant	3 400	18.2%	Non-repayable; competitive and not committed
Loans and asset finance	13 070	70.0%	Livestock finance, Land Bank production and expansion facilities
Total funding raised	18 670	100.0%	Against R11 195k of capital deployed

R’000	Year 1	Year 2	Year 3	Year 4	Year 5	Total
Founder equity	2 200	—	—	—	—	2 200
Grants received	1 800	—	1 600	—	—	3 400
Loans drawn	1 670	1 800	2 500	3 500	3 600	13 070
Total funding drawn	5 670	1 800	4 100	3 500	3 600	18 670
Capital deployed	(4 320)	(870)	(1 570)	(1 990)	(2 445)	(11 195)

Total funding of R18.67 million exceeds capital deployed of R11.20 million by R7.47 million. That difference is not a surplus: it funds the operating deficit across Years 1 to 4, during which cash EBITDA is negative in every year while the herd is built, and it services the interest on the debt that funds it.

12.2 Use of funds

Figure 12. Capital deployed over five years.

12.3 Year 1 capital

Item	R’000	Treatment	Share of year
Foundation herd, 120 pregnant heifers and cows	1 740	Biological asset	40.3%
Breeding bulls, 5 head	240	Biological asset	5.6%
Perimeter and camp fencing	640	Capitalised and depreciated	14.8%
Water: boreholes, solar pumps, tanks and troughs	520	Capitalised and depreciated	12.0%
Handling facility, crush, scale and loading ramp	285	Capitalised and depreciated	6.6%
Bakkie and livestock trailer	420	Capitalised and depreciated	9.7%
Registration, brand, veterinary setup and training	95	Capitalised and depreciated	2.2%
Working capital, first twelve months	380	Working capital	8.8%
Total Year 1	4 320		100.0%

12.4 Year 2 capital

Item	R’000	Treatment	Share of year
Additional camp fencing	320	Capitalised and depreciated	36.8%
Second water point and reticulation	210	Capitalised and depreciated	24.1%
Breeding bulls, 2 head	104	Biological asset	12.0%
Handling and quarantine camp	130	Capitalised and depreciated	14.9%
Working capital	106	Working capital	12.2%
Total Year 2	870		100.0%

12.5 Year 3 capital

Item	R’000	Treatment	Share of year
Camp fencing to 250 cows	430	Capitalised and depreciated	27.4%
Third water point and solar pump	290	Capitalised and depreciated	18.5%
Breeding bulls, 3 head	162	Biological asset	10.3%
Fodder store and lick storage	180	Capitalised and depreciated	11.5%
Vehicle and equipment	320	Capitalised and depreciated	20.4%
Working capital	188	Working capital	12.0%
Total Year 3	1 570		100.0%

12.6 Year 4 capital

Item	R’000	Treatment	Share of year
Camp fencing to 350 cows	560	Capitalised and depreciated	28.1%
Water storage and reticulation upgrade	380	Capitalised and depreciated	19.1%
Breeding bulls, 4 head	228	Biological asset	11.5%
Handling facility expansion	290	Capitalised and depreciated	14.6%
Vehicle and equipment	290	Capitalised and depreciated	14.6%
Working capital	242	Working capital	12.2%
Total Year 4	1 990		100.0%

12.7 Year 5 capital

Item	R’000	Treatment	Share of year
Camp fencing to 450 cows	700	Capitalised and depreciated	28.6%
Fourth water point and solar pump	420	Capitalised and depreciated	17.2%
Breeding bulls, 4 head	244	Biological asset	10.0%
Drought fodder reserve infrastructure	380	Capitalised and depreciated	15.5%
Vehicle, equipment and staff housing	405	Capitalised and depreciated	16.6%
Working capital	296	Working capital	12.1%
Total Year 5	2 445		100.0%

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