Green Master Vegetables Business Plan — Key Performance Indicators
The yield, price, water use and cost indicators monitored per crop cycle, with thresholds that trigger intervention.
Key Performance Indicators
Jump to section
- Overview & contents
- i. Important Notice
- 1. Executive Summary
- 2. Why Limpopo
- 3. The Market and the Commission Problem
- 4. Water: The Binding Constraint
- 5. Open Field Versus Tunnels
- 6. Crop Plan and Rotation
- 7. SWOT and Competitive Position
- 8. Route to Market
- 9. Unit Economics
- 10. The Five-Year Build and Its Gates
- 11. Funding
- 12. People and Operations
- 13. Certification and Compliance
- 14. Financial Projections
- 15. Break-Even
- 16. Sensitivity and Scenarios
- 17. Risk Management
- 18. Implementation Timeline
- 19. Returns
- 20. Key Performance Indicators
- 21. Key Assumptions
- 22. Conclusion
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Capital Schedules
- C. Appendix C: Funding and Debt Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
The following are the operating measures on which this plan should be managed. Three of them, gross margin per hectare, direct channel share and pack-out rate, carry more information about the health of the business than any revenue figure, because revenue rises with area whether or not the farm is working.
|
Indicator |
Definition |
Target |
Why it matters |
|---|---|---|---|
|
Hectares under production |
Planted and irrigated area |
45 ha by Year 5 |
Fixed costs are carried by area; break-even is 31.0 ha |
|
Direct channel share |
Volume sold outside market agents |
42% by Year 5 |
Each point shifted is worth roughly R47 000 at Year 5 volume |
|
Yield per hectare |
Tonnes harvested ÷ hectares planted |
32 t open field, 100 t tunnel |
A 15% shortfall costs R3.12m of EBITDA |
|
Cropping intensity |
Crops per hectare per year |
1.8 open, 1.9 tunnel |
As important to revenue per hectare as yield |
|
Gross margin per hectare |
Gross margin ÷ hectares |
R193 745 by Year 5 |
The number break-even is calculated from |
|
Packaging cost per tonne |
Packaging ÷ tonnes packed |
Falling |
The largest single cost line at 17.0% of revenue |
|
Water use per hectare |
Cubic metres ÷ hectares irrigated |
Falling |
Soil moisture probes; CSIR trials cut use 24% |
|
Pack-out rate |
Marketable tonnes ÷ tonnes harvested |
Above 85% |
Everything below grade is cost already incurred |
|
Debtor days |
Trade debtors ÷ direct-channel revenue × 365 |
Below 30 days |
Market agents settle promptly; direct buyers do not always |
|
Debt service cover |
EBITDA ÷ interest and scheduled capital |
Above 1.30x from Year 5 |
Negative until Year 3 by construction |