ProNutri Dairy Foods — Operations Plan

The proposed processing facility will be constructed on a 5-hectare site in the George Industrial Area. The facility design follows international best practice for dairy manufacturing, incorporating clean-room processing environments, automated CIP (Clean-in-Place) systems, and segregated product flow to prevent cross-contamination.

ProNutri Dairy Foods (Pty) Ltd Business PlanSection 9 › Operations Plan

Section 9 · Business Plan

Operations Plan

The proposed processing facility will be constructed on a 5-hectare site in the George Industrial Area. The facility design follows international best practice for dairy manufacturing, incorporating clean-room processing environments, automated CIP (Clean-in-Place) systems, and segregated product flow to prevent cross-contamination.

9.1 Processing Facility Layout

The proposed processing facility will be constructed on a 5-hectare site in the George Industrial Area. The facility design follows international best practice for dairy manufacturing, incorporating clean-room processing environments, automated CIP (Clean-in-Place) systems, and segregated product flow to prevent cross-contamination.

Facility Area Size (m²) Function
Milk Receiving Hall 800 Raw milk intake, quality testing, initial cooling
Pasteurisation Area 1,200 HTST pasteurisation, homogenisation, separation
UHT Processing 600 Ultra-high temperature sterilisation and aseptic filling
Cheese Manufacturing 1,500 Cheese vats, pressing, aging rooms
Yoghurt & Fermentation 800 Fermentation tanks, flavouring, filling
Packaging Hall 1,800 Automated filling, labelling, case packing
Cold Storage 2,000 Refrigerated storage at 2-6°C
Dry Storage & Warehouse 1,500 Packaging materials, finished goods staging
Quality Control Laboratory 300 Microbiological and chemical testing
Offices & Amenities 1,200 Administration, staff facilities, training room
Total Built Area 11,700

9.2 Production Capacity

Parameter Year 1 Year 3 Year 5
Raw Milk Intake (litres/day) 120,000 240,000 300,000
Operating Days per Year 330 340 350
Annual Raw Milk Processed (m litres) 39.6 81.6 105.0
Capacity Utilisation 65% 78% 90%
Product Yield (% of intake) 92% 94% 95%
Figure
Capacity Rampup — visualised from the accompanying data.

9.3 Raw Milk Procurement Strategy

ProNutri Dairy will secure raw milk supply through a three-tier procurement strategy. The primary supply channel will consist of long-term off-take agreements (3-5 year contracts) with 15-20 commercial dairy farms within a 100km radius of George, providing approximately 70% of requirements. Secondary supply will be sourced through the Milk Producers’ Organisation (MPO) cooperative network, providing swing volume of approximately 20%. A strategic reserve of approximately 10% will be maintained through spot market purchases and potential acquisition of one or two dairy farms from Year 3 onwards.

Raw milk pricing will be negotiated on a cost-plus basis linked to the MPO reference price, with seasonal and quality-based adjustments. The Company will deploy mobile milk collection tankers equipped with real-time quality testing to ensure consistent raw material quality.

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