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Business Plan Africa Investor-Ready Plans

Karoo Golden Fields Poultry — Appendices

The break-even revenue is calculated at approximately R5,200,000 per annum, equivalent to approximately 65,000 birds at an average revenue of R80/bird. This threshold is expected to be surpassed during the first year of operations, providing confidence in the project’s financial viability.

Karoo Golden Fields Poultry (Pty) Ltd Business Plan › Section 20 › Appendices

Section 20 · Business Plan

Appendices

The break-even revenue is calculated at approximately R5,200,000 per annum, equivalent to approximately 65,000 birds at an average revenue of R80/bird. This threshold is expected to be surpassed during the first year of operations, providing confidence in the project’s financial viability.

Appendix A: Detailed Assumptions

Revenue Assumptions

  • Year 1 average selling price: R40/kg (whole bird equivalent) based on 2.0 kg average dressed weight = R80/bird average revenue.

  • Annual price escalation: 5% (aligned with CPI + 1% premium food category inflation).

  • Year 1 production: 120,000 birds gross, 114,000 net of 5% mortality = ~R4.8 million revenue.

  • Volume growth: 40–45% p.a. in Years 2–3 driven by capacity expansion; moderating to 25–30% in Years 4–5.

Cost Assumptions

  • Feed cost: R22–26/bird (60% of COGS), escalating at 6–8% p.a. linked to maize/soya commodity prices.

  • Day-old chick cost: R7.50/chick (SAPA-certified Ross 308 or Cobb 500 strains).

  • Processing fee: R4.50/bird at contracted abattoir.

  • Packaging and labelling: R2.50/unit.

  • Salary escalation: 8% p.a. (agricultural sector minimum wage adjustments plus performance-based increases).

Appendix B: Break-Even Analysis

The break-even revenue is calculated at approximately R5,200,000 per annum, equivalent to approximately 65,000 birds at an average revenue of R80/bird. This threshold is expected to be surpassed during the first year of operations, providing confidence in the project’s financial viability.

Appendix C: Glossary of Terms

B-BBEE: Broad-Based Black Economic Empowerment –
South Africa’s legislative framework for economic transformation.
COGS: Cost of Goods Sold – direct costs attributable
to production.
DALRRD: Department of Agriculture, Land Reform and
Rural Development.
DFI: Development Finance Institution.
EBIT: Earnings Before Interest and Tax.
EBITDA: Earnings Before Interest, Tax, Depreciation
and Amortisation.
ESG: Environmental, Social, and Governance.
HACCP: Hazard Analysis Critical Control Point – food
safety management system.
IDC: Industrial Development Corporation.
IRR: Internal Rate of Return.
SAMIC: South African Meat Industry Company.
SAPA: South African Poultry Association.
SARS: South African Revenue Service.
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