Appendices · Business Plan

Appendices

Appendix A — Assumptions Summary

Assumption	Value / Basis
Annual goat price appreciation	7% per annum (10-year historical average)
Annual feed cost inflation	8% per annum (CPI + agricultural input inflation)
Annual labour cost escalation	7% per annum (BCEA minimum wage increases)
Discount rate (hurdle rate)	15% (agricultural risk premium over SARB repo rate)
Depreciation method	Straight-line; infrastructure 20 years; equipment 5 years
Income tax rate	28% (SA corporate income tax; tax losses carried forward)
VAT registration	Mandatory from Year 2 (revenue exceeds R1M threshold)
Exchange rate sensitivity	Minimal — operations primarily ZAR-denominated

Appendix B — Abbreviations & Glossary

Term	Definition
CASP	Comprehensive Agricultural Support Programme — DALRRD infrastructure grant for emerging farmers
DALRRD	Department of Agriculture, Land Reform and Rural Development (South Africa)
DCF	Discounted Cash Flow — method of valuing future cash flows in today's terms
EBITDA	Earnings Before Interest, Tax, Depreciation and Amortisation
IRR	Internal Rate of Return — the discount rate at which NPV equals zero
LEDA	Limpopo Economic Development Agency
LW	Live Weight — weight of a live animal at point of sale
MAFISA	Micro Agricultural Finance Scheme — concessional production loans via Land Bank
NPV	Net Present Value — present value of future cash flows minus initial investment
PPR	Peste des Petits Ruminants — highly contagious viral disease of goats and sheep
RFID	Radio Frequency Identification — electronic livestock identification tags

DALRRD. (2024). CASP Programme Guidelines. Pretoria: Department of Agriculture, Land Reform and Rural Development.
Land Bank of South Africa. (2024). Emerging Farmer Finance Products. Pretoria: Land Bank.
South African Boer Goat Breeders’ Association (SABGA). (2024). Production Standards and Market Data.
DAFF. (2023). Abstract of Agricultural Statistics. Pretoria: Department of Agriculture, Forestry and Fisheries.
Limpopo Department of Agriculture and Rural Development. (2024). Limpopo Agricultural Development Plan.
AgriSA. (2023). South African Livestock Market Overview. Johannesburg: AgriSA.
Statistics South Africa. (2024). Consumer Price Index — Food and Livestock Components.

This document contains proprietary and confidential information. Distribution without written consent is prohibited.