Karoo Meridian — Operations Plan

The land, the flock build, the shearing, feedlot and veterinary infrastructure and the operating cycle underpinning Karoo Meridian.

Karoo Meridian Business PlanSection 6 › Operations Plan

Section 6 · Business Plan

Operations Plan

The land, the flock build, the shearing, feedlot and veterinary infrastructure and the operating cycle underpinning Karoo Meridian.

6.1 Farming system

The Company operates an extensive-plus-precision hybrid: rotational
grazing across fenced camps sized to Karoo carrying capacity (regional
norms of 5–10 ha per small stock unit in the more arid sections),
planned veld recovery cycles, strategic supplementary feeding in late
gestation and lactation, and feedlot finishing of market lambs.
Precision systems — RFID ear tags, electronic weighing, reproduction
analytics and mortality monitoring — give individual-animal economics
across a 31,000-head flock.

6.2 Flock build-up

Figure 8
Figure 8 — Flock build-up by class, Years 1–10
Parameter Y1 Y2 Y3 Y4 Y5
Breeding ewes 12,000 14,400 17,280 19,870 22,850
Rams 450 520 600 680 760
Growing stock 3,600 6,900 9,400 12,100 14,300
Total flock 16,050 21,820 27,280 32,650 37,910
Weaned lambing % 95% 98% 102% 105% 105%
Wool clip (t greasy) 54 72 92 112 130

Ewe numbers grow ~20% per annum through retained ewe lambs plus
selective purchases in Years 2–3, reaching the sponsor’s 31,000+
total-flock milestone during Year 5 (the table shows the analyst’s
slightly more granular class split, which passes the milestone between
Years 4 and 5). Mortality is budgeted at 4% adult and 8% pre-weaning,
with predation control (guard animals, exclusion fencing) and
vaccination programmes as standing operating disciplines.

6.3 Breeding programme

  • Selection indices weighted across wool micron and fleece weight,
    fertility and lamb survival, growth efficiency and veld
    adaptability
  • BLUP breeding values on the full recorded flock; genomic testing
    of the stud nucleus; AI over the top 20% of ewes; embryo transfer for
    elite lines
  • Closed-nucleus structure: stud nucleus (±5% of ewes) breeds rams
    for the commercial flock, compounding genetic gain internally
  • Annual classing and culling on performance data; replacement rate
    ±22% of the ewe flock

6.4 Infrastructure programme

Asset Capex (R m) Specification
Land (18,000 ha) 90.0 Free State–Northern Cape corridor; freehold with water rights
Foundation livestock 42.0 12,000 ewes @ ±R3,000; 450 rams @ ±R13,000 average incl. elite genetics
Infrastructure 48.0 Shearing sheds, handling and feedlot facilities, veterinary unit, boreholes, reticulation, fencing, wool store
Machinery 22.0 Feed mixers, loaders, transport fleet, generators/solar
Export systems 8.0 Cold-chain interface, certification, traceability compliance
Technology 10.0 RFID, weighing, farm management software, reproduction analytics
Figure 9
Figure 9 — Application of the R245m establishment programme

6.5 Supply chain and logistics

Wool moves from on-farm classing to broker warehousing and the weekly
national auction; the Company will progressively contract a portion of
the certified clip forward to exporters. Market lambs move from feedlot
to accredited abattoirs within a 250 km radius, with export consignments
consolidated through Halaal-certified, DALRRD-approved export
facilities. Breeding stock sales are handled through on-farm production
auctions and private treaty, with veterinary export protocols managed
in-house for African destinations.

6.6 Annual production and animal health calendar

Period Production activity Health & compliance
Jan–Feb Ram preparation; ewe condition scoring; veld assessment Pre-mating vaccinations (enzootic abortion, pulpy kidney booster); ram fertility testing
Mar–Apr Mating (5-week single-sire and AI programmes) Internal parasite monitoring (FAMACHA); trace-mineral supplementation
May–Jun Scanning; dry-ewe culling; feedlot intake of autumn lambs Pregnancy scanning audit; scab inspection dip where required
Jul Pre-lambing shearing option; late-gestation nutrition ramp Pre-lamb boosters; predator-control intensification
Aug–Sep Lambing (camp-based, shepherded); lamb marking Navel care; docking/castration to welfare code; colostrum monitoring
Oct–Nov Main shearing; wool classing and baling; weaning begins Shearing-wound protocols; post-shear exposure management
Dec Weaning completed; replacement selection; auction prep Weaner vaccination programme; year-end flock census for lender verification

6.7 Staffing plan

Function Y1 Y3 Y5 Notes
Executive & finance 6 8 9 CEO, CFO, controllers, admin
Livestock operations 58 96 138 Shepherds, camp managers, feedlot team
Shearing & wool handling 18 34 52 Seasonal peaks contracted in addition
Veterinary & technical 6 10 14 Vet, para-vets, AI technicians, data
Maintenance & logistics 20 32 44 Fencing, water, fleet, workshops
Security & predation control 12 20 28 Patrols, guard-animal handlers
Sales, export & certification 4 10 15 Wool marketing, GCC channel, compliance
Total direct employment 124 210 300+ 455 by Year 5 incl. seasonal FTE-equivalents

Wage costs are budgeted within the direct-cost line at sectoral
minimums plus productivity premiums, with housing, training and the
employee share scheme carried in overheads. The 450+ direct-jobs figure
at Year 5 counts permanent posts plus seasonal shearing, lambing and
auction labour converted to full-time equivalents.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Karoo Meridian Wool & Livestock (Pty) Ltd.