Highland Elite Seed Potatoes — Executive Summary

Highland Elite Seed Potatoes (Pty) Ltd (“Highland Elite” or the “Company”) is a proposed commercial seed potato production enterprise to be established in Bethlehem, Free State Province, South Africa. The Company will specialise in the production of certified seed potatoes for supply…

Section 1 · Business Plan

Executive Summary

Capital Raising

R95,000,000

To establish a commercial certified seed potato production enterprise in Bethlehem, Free State, targeting R118 million in Year-5 revenue, an 18.7% IRR and a 5.2-year payback.

Seed potatoes represent the foundational input for the entire commercial potato value chain. High-quality, disease-free certified seed is critical to achieving optimal yields, ensuring crop health, and maintaining profitability for commercial potato growers. South Africa’s current domestic seed potato supply falls short of meeting the growing demand, creating a compelling market opportunity for a well-capitalised and professionally managed entrant.

The Company will develop a 600-hectare irrigated seed potato farm incorporating modern tissue culture propagation, greenhouse mini-tuber production, field multiplication, cold storage, grading, and packaging facilities. The operation will be fully compliant with the South African Potato Seed Certification Scheme administered by the Department of Agriculture, Land Reform and Rural Development (DALRRD).

Target Production: 6,500 tonnes of certified seed
potatoes per annum by Year 5.

Revenue Target: R118 million per annum by Year
5.

Capital Required: R95 million for land acquisition,
infrastructure development, equipment procurement, and working
capital.

Projected EBITDA Margin: 28.5% by Year 5 at full
operational capacity.

Project IRR: 18.7% (pre-tax) over a 10-year
evaluation period.

Payback Period: Approximately 5.2 years from date of
first capital deployment.

1.1 Investment Highlights

Certified seed potatoes attract premium pricing of R15,000–R22,000 per tonne, significantly above table potato prices
South Africa imports approximately 8–10% of seed potato requirements, indicating undersupply
Bethlehem’s high-altitude climate (1,660m above sea level) provides ideal growing conditions with reduced disease pressure
Strong structural demand drivers: growing population, increasing per capita potato consumption, and expanding processed potato market
Experienced management team with a combined 65+ years of agricultural and agribusiness expertise
Clear pathway to regional export expansion into Mozambique, Zimbabwe, Namibia, Botswana, and Eswatini
Alignment with South African government agricultural transformation and food security objectives

Figure

Revenue Projection — visualised from the accompanying data.

Figure 1.1: Projected Revenue Growth (Year 1–Year 5)

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