Karoo Harvest Produce — Appendices
The financial model underlying this business plan is constructed on the following detailed assumptions. All projections are presented in nominal terms (i.e., inclusive of inflation).
Section 17 · Business Plan
Appendices
The financial model underlying this business plan is constructed on the following detailed assumptions. All projections are presented in nominal terms (i.e., inclusive of inflation).
Appendix A: Detailed Financial Assumptions
The financial model underlying this business plan is constructed on the following detailed assumptions. All projections are presented in nominal terms (i.e., inclusive of inflation).
Production Assumptions
| Parameter | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Planted area (ha) | 100 | 100 | 105 | 110 | 115 |
| Yield (tonnes/ha) | 72 | 74 | 76 | 78 | 80 |
| Gross production (tonnes) | 7,200 | 7,400 | 7,980 | 8,580 | 9,200 |
| Harvest loss % | 12% | 10% | 9% | 8% | 8% |
| Marketable production (tonnes) | 6,336 | 6,660 | 7,262 | 7,894 | 8,464 |
| Average blended price (R/kg) | R4.74 | R5.05 | R5.26 | R5.38 | R5.55 |
Economic Assumptions
| Parameter | Value |
| CPI Inflation | 5.0% p.a. |
| Input Cost Inflation | 6.0% p.a. |
| Revenue Price Escalation | 5.5% p.a. |
| Corporate Tax Rate | 27% |
| Discount Rate (WACC) | 15% |
| Terminal Growth Rate | 3% |
Appendix B: Glossary of Terms
| Term | Definition |
| AfCFTA | African Continental Free Trade Area |
| B-BBEE | Broad-Based Black Economic Empowerment |
| BCEA | Basic Conditions of Employment Act |
| CA Storage | Controlled Atmosphere Storage |
| COIDA | Compensation for Occupational Injuries and Diseases Act |
| DALRRD | Department of Agriculture, Land Reform and Rural Development |
| DFFE | Department of Forestry, Fisheries and the Environment |
| DWS | Department of Water and Sanitation |
| EBITDA | Earnings Before Interest, Tax, Depreciation, and Amortisation |
| EIA | Environmental Impact Assessment |
| GLOBALG.A.P. | Global Good Agricultural Practices certification |
| HACCP | Hazard Analysis and Critical Control Points |
| IDC | Industrial Development Corporation |
| IPM | Integrated Pest Management |
| IRR | Internal Rate of Return |
| MBO | Management Buyout |
| NEMA | National Environmental Management Act |
| NPV | Net Present Value |
| PP&E | Property, Plant and Equipment |
| SA GAAP | South African Generally Accepted Accounting Practice |
| SACU | Southern African Customs Union |
| SADC | Southern African Development Community |
| SARB | South African Reserve Bank |
| WACC | Weighted Average Cost of Capital |
— END OF BUSINESS PLAN —
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