Khanya Eggs Business Plan — Capital Expenditure
The R13.53m capital programme across five stages: housing, cages, equipment, packing and vehicles, phased against the flock build.
Capital Expenditure
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- Overview & contents
- i. Important Notice
- 1. Executive Summary
- 2. The South African Egg Market
- 3. Avian Influenza: The Risk That Defines This Business
- 4. SWOT and Competitive Position
- 5. The Five-Stage Roadmap
- 6. The Funding Ladder
- 7. Flock Performance
- 8. Feed Strategy
- 9. Point-of-Lay Pullet Sourcing
- 10. Biosecurity
- 11. Route to Market and Pricing
- 12. Operations and People
- 13. Regulation and Compliance
- 14. Unit Economics
- 15. Capital Expenditure
- 16. Financial Projections
- 17. Break-Even
- 18. Sensitivity and the Grant Question
- 19. Risk Management
- 20. Implementation Roadmap
- 21. Returns
- 22. Key Performance Indicators
- 23. Key Assumptions
- 24. Conclusion
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Stage Capital Schedules
- C. Appendix C: Debt Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Funding Application Checklist
- F. Appendix F: Glossary
|
R’000 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
|
Fixed assets |
482 |
711 |
1 544 |
3 780 |
5 745 |
|
Working capital |
168 |
142 |
216 |
320 |
425 |
|
Capital deployed |
650 |
853 |
1 760 |
4 100 |
6 170 |
|
Cumulative |
650 |
1 503 |
3 263 |
7 363 |
13 533 |
Of the R13.53 million deployed, R12.26 million is fixed assets, houses, cages, equipment, vehicles, solar, grading and the feed mill, and R1.27 million is working capital, principally the opening flock and feed stock at each stage. The full stage-by-stage schedules are in Appendix B.
15.1 Stage 1 capital in detail
|
Item |
R’000 |
Share |
|---|---|---|
|
Site preparation, water connection and fencing |
96 |
14.8% |
|
Layer house, 500 birds |
128 |
19.7% |
|
Cages, feeders, drinkers and nest equipment |
104 |
16.0% |
|
Egg store, grading table and cold-safe area |
62 |
9.5% |
|
Water tanks, pump and reticulation |
58 |
8.9% |
|
Registration, permits and initial training |
34 |
5.2% |
|
Opening flock and feed working capital |
168 |
25.8% |
|
Total Stage 1 |
650 |
100.0% |
Only R128 000 of the R650 000 spent in Stage 1 is the layer house itself. The remainder is the site, water, fencing, egg store, tanks, registration, plus R168 000 of opening flock and feed. Those site costs are one-time and the second and subsequent houses do not repeat them, which is why house two at Stage 2 costs R268 000 for three times the birds and why capital cost per bird falls sharply after the first stage.