KarooPrime Capretto Business Plan › Section 10 › Procurement & Farmer Integration Model

The farmer-integration model is both a commercial necessity —
securing supply — and the Company’s primary engine of development
impact. It is designed to be genuinely inclusive while remaining
commercially disciplined.

10.1 The aggregation network

Regional aggregation centres serve as the interface between the
Company and its supply base. At these centres animals are received,
weighed, graded, health-checked and consolidated for transport to
feedlots. Centres also function as service hubs where farmers access
inputs, veterinary support, training and transparent price
information.

10.2 Farmer support and incentives

Rather than purchasing opportunistically on the spot market, the
Company builds durable relationships with its producers. Support
includes access to improved genetics and breeding stock, animal-health
and nutrition inputs, extension training in husbandry and biosecurity,
and — critically — a transparent, grade- and weight-based pricing
schedule that pays farmers fairly and predictably. Incentive payments
reward consistency, quality and biosecurity compliance.

10.3 Inclusive growth

By formally contracting smallholder and emerging farmers, the Company
brings producers who are currently locked out of formal markets into a
structured, bankable value chain. This raises and stabilises producer
incomes, builds productive assets in rural communities and creates a
replicable template for inclusive agribusiness — a profile that is
highly attractive to development finance institutions and impact
investors.

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 KarooPrime Capretto (Pty) Ltd.