Two Seasons Garlic Business Plan — Business Model
How the business earns across fresh, seed and processed lines, and the unit economics of a planted hectare.
Business Model
Jump to section
- Overview & contents
- 1. Executive Summary
- 2. Investment Thesis
- 3. Company and Business Overview
- 4. Problem, Customer Need and Value Proposition
- 5. Products and Services
- 6. Industry Analysis
- 7. Market Analysis
- 8. Customer Analysis
- 9. Market and Competitive Landscape
- 10. Business Model
- 11. Go-to-Market Strategy
- 12. Operating Model
- 13. Management and Organisation
- 14. Strategic Plan
- 15. SWOT Analysis and Strategic Implications
- 16. Risk Analysis
- 17. ESG and Sustainability
- 18. Implementation Roadmap
- 19. Financial Model and Revenue Build
- 20. Projected Income Statement
- 21. Projected Balance Sheet
- 22. Projected Cash Flow
- 23. Capital Expenditure and Working Capital
- 24. Funding Requirement and Structure
- 25. Break-Even Analysis
- 26. Investment Case and Returns
- 27. Debt Serviceability
- 28. Sensitivity and Scenario Analysis
- 29. Key Performance Indicators and Management Dashboard
- 30. Conclusion
- A. Appendix A: Assumption Register
- B. Appendix B: Conditions Precedent to the Seed Subscription
- C. Appendix C: Glossary
- 10.1 Business Model Canvas
- 10.2 How capital converts into returns
- 10.3 Unit economics per hectare
Capital becomes a seed bank and post-harvest assets; the seed bank becomes hectares; hectares become cured garlic sold at a rising blended price; and a 34% EBITDA margin at scale converts into investor returns.
10.1 Business Model Canvas
|
Building block |
Content |
|---|---|
|
Customer segments |
National retail groups; food-service distributors; SADC importers; market agents; processors |
|
Value proposition |
Eight-month local supply window; harvest-to-shelf freshness; locally peeled long-shelf-life cloves; full traceability; provenance labelling |
|
Channels |
Direct to retail DCs; food-service distributors; export agents; market agents |
|
Customer relationships |
Seasonal programme agreements with weekly call-offs; key-account management by the commercial director; technical visits to retailer QA |
|
Revenue streams |
Retail programmes (42% of FY2031 revenue); peeled food service (30%); SADC export (14%); wholesale (13%); culls (1%) |
|
Key resources |
Seed bank; two leased irrigated blocks with water entitlements; packhouse and peeling line; agronomic team; retail listing |
|
Key activities |
Seed selection; planting and crop management; curing; grading and packing; peeling; programme management; compliance |
|
Key partners |
Landowners; certified seed supplier (season one); retail category buyers; growers’ association; irrigation and equipment suppliers; term lender; crop insurer |
|
Cost structure |
Field cost ~R139,000/ha (variable); packing, curing and peeling per tonne (variable); overheads ~R13m at FY2031 (largely fixed) |
Table 18. Business Model Canvas.
10.2 How capital converts into returns
|
Stage |
What happens |
FY2031 quantity |
|---|---|---|
|
Capital |
R35.0m equity + R14.0m debt over three tranches |
R49.0m |
|
Assets and capabilities |
R40.7m capex in irrigation, curing, packhouse, peeling, mechanisation; 176 t seed bank; certified packhouse |
PPE R29.8m net |
|
Products |
92 ha × 11.8 t/ha = 1,086 t harvest; 910 t saleable |
910 t |
|
Customers |
~12 target accounts across retail, food service, export, wholesale |
No account >35% |
|
Revenue |
Sold volume × channel price; blended R58/kg of saleable crop |
R52.8m |
|
EBITDA |
Gross margin 59% less overheads R13.0m |
R18.0m (34%) |
|
Cash flow |
EBITDA less tax, working capital and maintenance capex |
FCF R8.7m |
|
Investor returns |
6.5x EBITDA exit; equity value after net debt; fully diluted ownership |
Seed 3.2x; A 1.9x; B 1.4x |
Table 19. Capital → Assets → Products → Customers → Revenue → EBITDA → Cash flow → Returns.
10.3 Unit economics per hectare
|
Per hectare, FY2031 |
R |
Basis |
|---|---|---|
|
Harvest |
11.8 t |
Yield assumption |
|
Less seed retained |
(1.9 t) |
176 t / 92 ha |
|
Saleable |
9.9 t |
After retention; before 8% culls |
|
Revenue |
574,000 |
Blended R58/kg × 9.9 t |
|
Field cost |
(139,000) |
Inputs, irrigation, labour, mechanisation |
|
Curing, packing, peeling, logistics |
(103,000) |
Volume-driven post-harvest costs |
|
Contribution |
332,000 |
58% of revenue |
|
Overheads allocated |
(142,000) |
R13.0m / 92 ha |
|
EBITDA |
190,000 |
33% of revenue |
Table 20. Unit economics per planted hectare at FY2031.