StratDairy Foods — Operational Plan

The production facility will be located in the Willowton Industrial Park precinct of Pietermaritzburg, KwaZulu-Natal. This location was selected following a rigorous site-selection process that evaluated 12 candidate locations across four provinces against weighted criteria including proximity to raw milk supply, distribution…

StratDairy Foods (Pty) Ltd Business PlanSection 4 › Operational Plan

Section 4 · Business Plan

Operational Plan

The production facility will be located in the Willowton Industrial Park precinct of Pietermaritzburg, KwaZulu-Natal. This location was selected following a rigorous site-selection process that evaluated 12 candidate locations across four provinces against weighted criteria including proximity to raw milk supply, distribution…

Production Capacity
20 million litres/yr

A yogurt processing facility designed to scale to 20 million litres per annum within five years.

4.1 Facility Location – Pietermaritzburg, KZN

The production facility will be located in the Willowton Industrial Park precinct of Pietermaritzburg, KwaZulu-Natal. This location was selected following a rigorous site-selection process that evaluated 12 candidate locations across four provinces against weighted criteria including proximity to raw milk supply, distribution logistics, utility costs, labour availability, and industrial property rates.

Selection Criterion Pietermaritzburg Advantage Weight
Milk Supply Proximity Within 80km of 40+ commercial dairy farms in KZN Midlands 25%
Distribution Access N3 corridor to Durban port and Gauteng; N2 coastal route 25%
Property Costs 40–55% lower industrial rental vs. Gauteng and Durban CBD 20%
Labour Availability Large semi-skilled labour pool; proximity to DUT and UKZN 15%
Utility Infrastructure Reliable municipal water; Eskom grid with solar feasibility 15%

4.2 Production Capacity & Technology

The plant is designed for an initial production capacity of 10 million litres per annum across all product lines, with physical infrastructure sized to accommodate expansion to 20 million litres through the addition of a second processing line in Year 4 or Year 5. Key technical specifications include:

Processing: Fully automated yogurt production line
incorporating pasteurisation, homogenisation, fermentation (controlled
culture inoculation), cooling, and aseptic filling. Equipment sourced
from Tetra Pak (Sweden) and GEA Group (Germany), both recognised leaders
in dairy processing technology.
Cold Storage: 1,200m² cold-chain warehouse
maintaining 2–4°C, equipped with redundant refrigeration units and
72-hour backup power via diesel generators and battery systems.
Quality Assurance: On-site microbiological
laboratory for real-time quality testing, including HACCP-compliant
monitoring at all critical control points. The facility will pursue ISO
22000 (Food Safety Management) and FSSC 22000 certification within 12
months of commissioning.

4.3 Supply Chain Architecture

StratDairy’s supply chain is designed for resilience, cost efficiency, and full traceability from farm to shelf:

Raw Milk Procurement: Long-term (3–5 year) off-take
agreements with 30+ commercial dairy farmers in the KZN Midlands.
Contracts include price-floor mechanisms linked to the Milk Producers’
Organisation (MPO) benchmark, providing input cost predictability. A
secondary supply arrangement with a national dairy cooperative provides
overflow capacity during demand peaks.
Packaging: Primary packaging comprises recyclable
PET cups and foil-sealed lids sourced from Nampak and Mpact, South
Africa’s leading packaging manufacturers. Outer packaging utilises
corrugated board from Sappi. The Company is committed to achieving 80%
packaging recyclability by Year 3.
Distribution: A hybrid distribution model combining
direct delivery to national retail chain distribution centres (Shoprite,
Pick n Pay, SPAR, Woolworths) with third-party cold-chain logistics
partners (Vector Logistics, Imperial Cold Logistics) for independent
retailer and foodservice delivery.

4.4 Human Capital Plan

StratDairy’s staffing plan projects headcount growth from 45 full-time equivalents at launch to 135 FTEs by Year 5. The Company will invest significantly in workforce development, allocating 2.5% of annual payroll to skills training in line with the Manufacturing, Engineering and Related Services SETA (merSETA) requirements.

Department Year 1 Year 2 Year 3 Year 4 Year 5
Production & QA 22 30 42 55 68
Supply Chain & Logistics 8 12 16 20 24
Sales & Marketing 6 8 12 16 20
Finance & Administration 5 6 8 10 12
Executive & Management 4 6 7 9 11
Total FTEs 45 62 85 110 135

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