Evergreen Valley Avocado Estates — Appendices

Appendix A: Detailed Yield Model (Tons per Hectare by Phase)

Evergreen Valley Avocado Estates (Pty) Ltd Business Plan › Appendices

Section 28 · Business Plan

Appendices

Appendix A: Detailed Yield Model (Tons per Hectare by Phase)

Appendix A: Detailed Yield Model (Tons per Hectare by Phase)

Year Phase 1 (60 ha) Phase 2 (50 ha) Phase 3 (40 ha) Total (tons) Revenue (R’000)
Year 1 0 n/a n/a 0 0
Year 2 0 0 n/a 0 0
Year 3 6 t/ha = 360t 0 0 360 7,200
Year 4 12 t/ha = 720t 6 t/ha = 300t 0 1,020 20,400
Year 5 16 t/ha = 960t 12 t/ha = 600t 6 t/ha = 240t 1,800 36,000
Year 6 18 t/ha = 1,080t 16 t/ha = 800t 12 t/ha = 480t 2,360 49,560
Year 7 20 t/ha = 1,200t 18 t/ha = 900t 16 t/ha = 640t 2,740 57,540

Appendix B: Break-Even Analysis

Metric Value
Fixed costs per annum (at maturity) R8,850,000
Variable cost per ton R10,700
Average selling price per ton R20,000
Contribution margin per ton R9,300
Break-even volume 952 tons
Break-even hectares (at 18t/ha) 53 hectares
Break-even as % of total orchard 35%

Appendix C: South African Avocado Industry Statistics

Metric Value
Total SA avocado production 180,000–200,000 tons/annum
Export volume 100,000–120,000 tons/annum
Primary growing regions Limpopo, Mpumalanga, KwaZulu-Natal
Major SA avocado producers Westfalia, ZZ2, Halls, Allesbeste
Industry body SA Avocado Growers’ Association (SAAGA)
Export window March – September
Key export destinations EU (Netherlands, UK, Germany, France)
Regulatory body (exports) PPECB / DALRRD

Appendix D: Glossary of Terms

Term Definition
B-BBEE Broad-Based Black Economic Empowerment
CAGR Compound Annual Growth Rate
DALRRD Department of Agriculture, Land Reform and Rural Development
DBSA Development Bank of Southern Africa
DWS Department of Water and Sanitation
EBITDA Earnings Before Interest, Tax, Depreciation and Amortisation
EPA Economic Partnership Agreement (SA–EU trade agreement)
FOB Free on Board (export pricing term)
GlobalG.A.P. Global Good Agricultural Practices certification standard
HACCP Hazard Analysis and Critical Control Points
IDC Industrial Development Corporation of South Africa
IRR Internal Rate of Return
JSE Johannesburg Stock Exchange
NPV Net Present Value
PPECB Perishable Products Export Control Board
SAAGA South African Avocado Growers’ Association
SIZA Sustainability Initiative of South Africa
WACC Weighted Average Cost of Capital

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