Kalahari Crown Exports Business Plan › Section 8 › Crop-Level Production Economics

This section sets out the unit economics underpinning the revenue
model. Each crop has a distinct yield profile, maturation lag, price
realisation and cost structure. The Company’s portfolio is weighted
toward high-value crops (cherries, dates, pecans) balanced by reliable
volume earners (citrus, table grapes, apples) and fast-cycle cash crops
(watermelon).

6A.1 Yield & Price Assumptions

Per-hectare yields are set conservatively relative to top-quartile
commercial benchmarks, recognising that newly established orchards take
several seasons to reach full productivity. Net export realisations are
stated per tonne, net of marketing commission, and escalate at
approximately 5.5% per year.

6A.2 Crop Portfolio Strategy & Rationale

Table grapes — the early-window anchor. The Orange
River is South Africa’s earliest-harvesting grape region, with harvest
beginning in late November and reaching European shelves ahead of
competing origins. This first-to-market timing commands a price premium.
The Company prioritises licensed seedless varieties (such as Crimson
Seedless, Sweetglobe, Autumncrisp and Sweet Celebration), reflecting the
decisive consumer shift to seedless fruit — seeded varieties now
represent under 8% of national plantings.

Citrus — the volume backbone. Citrus is South
Africa’s largest fruit export and the global market’s second-largest
supplier. The Company emphasises soft, easy-peel mandarins and
late-season lemons, the fastest-growing sub-categories, with structural
demand in Asia and the Middle East that partly insulates against tariff
volatility elsewhere. Northern Cape and Limpopo plantings provide an
early-season citrus window.

Dates — high-value arid-climate specialist. The hot,
arid Orange River climate is well suited to premium date cultivation.
Dates carry high per-tonne realisations and strong, growing demand in
Middle Eastern and premium retail markets, with the advantage of being
storable and less perishable than soft fruit.

Cherries — the ultra-premium opportunity. Cherries
command the highest per-tonne realisations in the portfolio. Their short
Southern-Hemisphere supply window and counter-seasonal positioning into
Europe, the UK and Asia support exceptional pricing, justifying the
cool-climate Western Cape investment.

Apples — leveraging export leadership. South Africa
became the Southern Hemisphere’s largest apple exporter in 2025, with
widening Asian market access (Thailand reopened, India growing, China
newly accessible for stone fruit). The Company’s Western Cape apple
programme rides this established export infrastructure.

Pecans — the storable growth play. Global nut demand
continues to rise, and pecans offer the advantage of long storability,
decoupling sales from the fresh-fruit shipping calendar. The Northern
Cape is increasingly recognised as a competitive pecan-producing
region.

Watermelon — the cash-cycle bridge. As a same-season
crop, watermelon generates early cash flow during the
orchard-establishment phase and serves as a useful rotational crop on
developing land, supplying regional Southern African markets.

6A.3 Cost of Production Dynamics

Cost of production as a percentage of farming revenue is high in the
early years — when orchards are immature but must still be irrigated,
fertilised and maintained — and improves materially as yields rise and
fixed costs are spread across greater volume. The model assumes
production costs fall from 78% of farming revenue in Year 1 to 43% by
Year 7, a trajectory consistent with the economics of maturing
commercial orchards.

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