GrainCore — Operational Strategy & Production
The phased capacity build, the milling process flow and the procurement and input strategy underpinning GrainCore.
Section 7 · Business Plan
Operational Strategy & Production
The phased capacity build, the milling process flow and the procurement and input strategy underpinning GrainCore.
7.1 Phased Capacity Build
Phase 1 establishes an integrated flagship facility in Gauteng with
two milling lines: a 180,000 tonne/annum maize line (commissioning in
Year 1) and a 120,000 tonne/annum wheat line (commissioning in Year 2).
This phasing front-loads the higher-margin, faster-to-market maize
business while the wheat line is procured and installed, smoothing the
capital and commissioning burden.
Throughput ramps deliberately toward full utilisation — the single
most important determinant of unit cost in milling. The model assumes
maize utilisation rising from 55% in Year 1 to 92% by Year 5, and wheat
from 50% in Year 2 to 85% by Year 5.
| Throughput (tonnes p.a.) | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Maize milled | 99,000 | 126,000 | 147,600 | 162,000 | 165,600 |
| Maize utilisation | 55% | 70% | 82% | 90% | 92% |
| Wheat milled | 0 | 60,000 | 81,600 | 96,000 | 102,000 |
| Wheat utilisation | 0% | 50% | 68% | 80% | 85% |
Table 7.1 — Throughput and capacity-utilisation
assumptions.
7.2 Milling Process Flow
The production process follows the standard modern roller-milling
sequence, instrumented end-to-end for quality and traceability:
- Intake & grading — grain received, sampled, graded, and
weighed at the silo intake. - Cleaning & conditioning — removal of foreign matter via
optical sorters and screens; tempering to optimal moisture. - Milling — progressive size reduction through roller-mill break
and reduction passages. - Sifting & purification — separation into flour/meal,
semolina, samp, grits, and bran streams. - Fortification & blending — micronutrient dosing and grade
blending to specification. - Packaging — automated filling into consumer and industrial
packs. - Warehousing & dispatch — palletisation, storage, and
distribution.
7.3 Procurement & Input Strategy
Grain is the dominant cost, representing the large majority of cost
of sales. GrainCore’s procurement strategy is designed to secure supply
while managing price risk:
- SAFEX-linked maize buying with forward contracts and selective
hedging to lock in conversion margins. - Direct farmer-contract programmes near the mill to reduce inbound
logistics cost — mirroring the industry trend of “milling close to
farmers.” - Blended wheat sourcing combining local supply with imports to
balance quality and cost, with FX hedging on import exposure. - Strategic grain storage in owned silos to exploit seasonal price
troughs and buffer supply disruptions.
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 GrainCore Milling & Foods (Pty) Ltd.