Karoo Harvest Produce — Capital Expenditure & Infrastructure
The total project capital requirement is R45 million, allocated across five principal categories:
Section 7 · Business Plan
Capital Expenditure & Infrastructure
The total project capital requirement is R45 million, allocated across five principal categories:
7.1 Capital Investment Summary
The total project capital requirement is R45 million, allocated across five principal categories:
Figure
7.2 Detailed Capital Budget
| Category | Item | Cost (R) | Notes |
| Land Development | Land acquisition (140 ha) | 4,500,000 | Freehold title, Northern Cape |
| Land clearing & preparation | 2,000,000 | Bush clearing, levelling, contouring | |
| Fencing & security | 1,500,000 | Perimeter and internal paddock fencing | |
| Irrigation | Centre-pivot systems (x4) | 6,000,000 | 30 ha per pivot, variable rate |
| Drip irrigation (40 ha) | 3,500,000 | Netafim sub-surface drip system | |
| Pumping station & mainline | 2,500,000 | River abstraction and filtration | |
| Machinery | Tractors (x3) | 4,500,000 | John Deere 5E series + implements |
| Onion planter & harvester | 3,000,000 | Specialist precision equipment | |
| Grading & packing line | 2,500,000 | 15 tonne/hour automated line | |
| Cold Storage | CA cold store (2,000t) | 6,000,000 | Controlled atmosphere facility |
| Pack house building | 2,000,000 | Steel structure, 1,500 m² | |
| Working Capital | Seed, fertiliser, chemicals | 3,500,000 | First crop cycle inputs |
| Labour & overheads | 2,000,000 | 6 months operating buffer | |
| Contingency | 1,500,000 | 3.3% of total capex | |
| TOTAL | 45,000,000 |
7.3 Depreciation Schedule
Capital assets will be depreciated on a straight-line basis in accordance with South African Generally Accepted Accounting Practice (SA GAAP) and applicable tax depreciation rates per Section 12C and 12B of the Income Tax Act:
| Asset Category | Cost (R) | Useful Life | Annual Depreciation |
| Land | 4,500,000 | Indefinite | Nil (not depreciated) |
| Land Improvements | 3,500,000 | 20 years | R175,000 |
| Irrigation Systems | 12,000,000 | 15 years | R800,000 |
| Farm Machinery | 10,000,000 | 8 years | R1,250,000 |
| Cold Storage & Pack House | 8,000,000 | 20 years | R400,000 |
| TOTAL DEPRECIATION | R2,625,000 |
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