Important Notice and Basis of Preparation

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• Overview & contents
• i. Important Notice and Basis of Preparation
• 1. Executive Summary
• 2. Aflatoxin: The Question That Defines the Business
• 3. Market, Products and Pricing
• 4. Regulation and Food Safety
• 5. SWOT and Competitive Position
• 6. Operations
• 7. Financial Plan
• 8. Break-Even and Debt Service
• 9. Investment Analysis
• 10. Sensitivity and Scenario Analysis
• 11. Risk Analysis
• 12. Implementation Roadmap
• 13. Key Performance Indicators
• 14. Key Assumptions
• 15. Conclusion and Recommendation
• A. Appendix A: Consolidated Financial Summary
• B. Appendix B: Volume, Kernel and Cost Schedules
• C. Appendix C: Funding, Debt and Working Capital Schedules
• D. Appendix D: Risk Register
• E. Appendix E: Glossary

This business plan has been prepared for SA Best Peanut Butter Manufacturing (Pty) Ltd, a proposed peanut butter manufacturing plant in Gauteng with capacity for 1 215 tonnes a year on one shift and 2 248 tonnes on two. The plant buys certified, batch-tested groundnut kernels, roasts, blanches, grinds and packs them, and sells under its own brand, as private label for retail chains, and into food service and industrial channels.

Basis of the figures. Revenue is built from tonnes produced, product mix and price per kilogram. It is not a growth rate applied to an assumed base. The income statement, balance sheet and cash flow statement are fully articulated: the balance sheet is derived rather than plugged and balances to the rand in every year, and the closing cash position reconciles exactly to the cash flow statement.

Kernel purchase prices, selling prices and capital costs are modelled, not quoted. Groundnut prices in particular are volatile, seasonal and sensitive to drought in the producing provinces. Every price in this plan must be re-verified against firm supplier quotations before capital is committed.

Published benchmarks. The Department of Health’s Regulation R.1145 sets the aflatoxin limit for peanut butter at 10 parts per billion. In February 2026 a Paarl-based manufacturer recalled product after its own internal testing returned 46 parts per billion on a first test and 28 on a re-test in the worst affected batch, with 1 019 units affected of which 168 had reached the market across four provinces; the National Consumer Commission called on all producers to test urgently. On 24 July 2026 the general rate of customs duty on peanut butter was raised from 0.99 cents a kilogram to 20 per cent ad valorem following an application by RCL Group Services, which had sought 25 per cent. Imports from the European Union, United Kingdom, EFTA and the Southern African Development Community remain duty free, and the African Continental Free Trade Area rate rose to 8 per cent. Peanut butter imports had risen 81 per cent in 2024 to 4.44 million kilograms, almost entirely from India. Raw groundnuts attract a 10 per cent duty, and ITAC has self-initiated an investigation into a temporary rebate on imported groundnuts. Domestic groundnut production averages about 62 000 tonnes a year against a five-year average of 56 004 tonnes, and roughly 55 per cent of commercial groundnut consumption goes to peanut butter. The national minimum wage is R30.23 an ordinary hour. These are cited where used.

Nothing in this document should be read as diminishing the aflatoxin risk it describes. Aflatoxin is a carcinogen, the regulatory limit is 10 parts per billion, and manufacturers who exceed it are required to recall product. A venture that treats testing as a cost to be minimised should not be funded.

Taxation. South African corporate income tax is applied at 27 per cent, with assessed losses carried forward subject to the section 20 limitation capping the set-off at the higher of R1 million or 80 per cent of taxable income.

Confidentiality. This document is delivered in confidence to the named recipient. It may not be reproduced or circulated in whole or in part without prior written consent.