Business Plan Africa Investor-Ready Plans

Verdant Fungi Farms Business Plan — Appendix B: Production and Capital Schedules

Room, shelf and crop-cycle schedules alongside equipment and fit-out capital, depreciation lives and capital phasing.

Appendix B: Production and Capital Schedules

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B.1 The four terms
B.2 Oyster against market absorption
B.3 Contribution by line
B.4 The contamination curve
B.5 Capital phasing and depreciation lives

B.1 The four terms

	Year 1	Year 2	Year 3	Year 4	Year 5
Growing rooms	3	4	6	6	6
Shelved area, m²	840	1 120	1 680	1 680	1 680
Crops per room per year	5.4	6.0	6.4	6.6	6.7
Total crops completed	16	24	38	40	40
Yield per m² per crop, kg	21.0	24.0	26.0	27.5	28.5
Grown, kg	95 256	161 280	279 552	304 920	320 796
Lost to contamination, kg	(15 241)	(18 547)	(23 762)	(21 344)	(19 248)
Not sold in shelf life, kg	(4 401)	(7 850)	(14 068)	(15 597)	(16 585)
Button sold, kg	75 614	134 882	241 721	267 978	284 963
Crop retained	79%	84%	87%	88%	89%

B.2 Oyster against market absorption

	Year 1	Year 2	Year 3	Year 4	Year 5
Oyster sold, kg	6 072	14 217	22 827	29 946	34 110
Estimated absorbable market, kg	12 000	20 000	28 000	34 000	38 000
Headroom, kg	5 928	5 783	5 173	4 054	3 890
Share of market absorbed	50.6%	71.1%	81.5%	88.1%	89.8%
Oyster share of volume	7.4%	9.5%	8.6%	10.1%	10.7%
Oyster share of revenue	14.4%	18.1%	16.6%	19.1%	20.2%
Oyster share of contribution	18.8%	23.4%	21.6%	24.6%	25.9%

B.3 Contribution by line

R	Year 1	Year 2	Year 3	Year 4	Year 5
Button contribution at 57%	2 162 580	3 857 760	6 914 100	7 664 790	8 150 430
Oyster contribution at 80%	524 800	1 229 600	1 973 600	2 589 600	2 949 600
Spent substrate	109 000	166 000	261 000	274 000	282 000
Total gross profit	2 403 000	4 898 000	8 856 000	10 421 000	11 404 000
Realised button price, R a kg	50.18	50.18	50.18	50.18	50.18
Realised oyster price, R a kg	108.04	108.11	108.07	108.09	108.09

B.4 The contamination curve

Contamination rate	Cumulative five-year profit after tax (R)	Assessment
2.0%	1 129 816	Start-up losses recovered
3.0%	706 554	Start-up losses recovered
4.0%	142 263	Start-up losses recovered
5.0%	(424 224)	Start-up losses not recovered
6.0%	(990 711)	Start-up losses not recovered
8.0%	(2 123 682)	Start-up losses not recovered
10.0%	(3 224 296)	Start-up losses not recovered
12.0%	(4 344 104)	Start-up losses not recovered

B.5 Capital phasing and depreciation lives

Item	Amount (R)	Life	Annual depreciation at full deployment (R)
Six button growing rooms — structure, insulation, shelving	7 600 000	15 years	506 667
Climate control, air handling and filtration	3 400 000	10 years	340 000
Oyster house — pasteurisation, inoculation, fruiting rooms	2 150 000	12 years	179 167
Cold room, packhouse and cold chain vehicle	1 780 000	8 years	222 500
Solar, backup generation and water	1 320 000	10 years	132 000
Site works, roads, biosecurity and fencing	620 000	15 years	41 333
Technical advisory and pre-operating costs	480 000	3 years	160 000
Total facility and infrastructure	17 350 000		1 581 667

R	Year 1	Year 2	Year 3	Year 4	Year 5
Capital deployed in the year	9 508 002	4 175 334	3 666 668	—	-4
Cumulative capital deployed	9 508 002	13 683 336	17 350 004	17 350 004	17 350 000
Depreciation charge	915 166	1 299 445	1 581 667	1 581 667	1 581 667
Net book value at year end	8 592 836	11 468 725	13 553 726	11 972 059	10 390 392

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