Evergreen Valley Avocado Estates (Pty) Ltd Business Plan › Company Overview

2.1 Company Information

2.2 Business Model

The company will develop and operate a large-scale commercial avocado orchard focused exclusively on export markets. The business model centres on producing high volumes of GlobalG.A.P.-certified, Class 1 avocados and supplying them to established export packhouses under long-term offtake agreements. This model reduces marketing risk and provides reliable revenue channels once production commences.

Revenue streams include the sale of export-grade avocados (approximately 70–75% of production), supply to the domestic market for Class 2 fruit (20–25%), and potential future revenue from avocado oil processing of reject and undersized fruit (5–10%). The phased orchard development plan allows the company to manage capital deployment and operational risk across a three-year establishment window.

2.3 Location Advantages – Tzaneen, Limpopo

Tzaneen is internationally recognised as one of South Africa’s premier avocado-producing regions, offering the following strategic advantages:

• Subtropical climate with average temperatures of 18–28°C, ideal for avocado cultivation

• Rainfall of 800–1,200mm per annum, supplemented by reliable dam and borehole water sources

• Deep, well-drained red laterite soils with optimal pH (5.5–6.5) for avocado root systems

• Established avocado industry cluster with access to packhouses, nurseries, and technical support

• Proximity to the N1 corridor and Durban harbour (export gateway to Europe and Asia)

• Skilled agricultural labour pool with experience in subtropical fruit farming

• Lower land costs compared to Mpumalanga and KwaZulu-Natal avocado regions

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