Copyright Bana Ba Kgwale/EJ Painter 2008-08-03 / …webapps.daff.gov.za/AmisAdmin/upload/BBKC NEW BUSINESS...510ha was allocated for this project by the Bakwena Ba Mogopa Traditional

Copyright –Bana Ba Kgwale/EJ Painter 2008-08-03 / 2013-01-20

Bana Ba Kgwale Agricultural Primary Co-op LTD

2 Copyright –Bana Ba Kgwale/EJ Painter 2008-08-03 / 2013-01-20

Community Members

1) Rakgotho Onnica (Mrs)

2) Bendlele Anna (Mrs)

3) Mabiletsa Magdeline (Mrs)

4) Mashego Silvia (Mrs)

5) Thage Johanna (Mrs)

6) Kekana Kate (Mrs)

7) Thamage Andrew (Mr)

8) Maiketso Jacob (Mr)

9) Mashala Orphen (Mr)

Contact Details

Name: Chairperson

Mr. Jacob Maiketso

Tel no. : 084 773 5323

Name: Secretary

Mr. Orphen Mashala

Tel no.: 076 734 6506

Mentor and Project Manager

Mr. E J Painter (Complied Business Model and Plan)

Tel no: 084 510 8777



1. BANA BA KGWALE AGRICULTURAL COOPERATIVE BUSINESS

PLAN

This document serves as a funding business proposal for the establishment of a financially

independent Bana Ba Kgwale Primary Cooperative (BBKAPC)

BACKGROUND INFORMATION

The following project is situated on Tribal Land of the Bakwena Ba Mogopa Traditional Authority,

Jericho district on the farm “Palmietfontein JQ227” North West.

510ha was allocated for this project by the Bakwena Ba Mogopa Traditional Authority to the Bana

Ba Kgwale Agricultural Primary Cooperative through a lease agreement for nine and a half years with

option to extend. The Farm “Palmietfontein JQ227” has the General Permission to use 374700 cubs

water this water is allocated to the Farm “Palmietfontein JQ227”and needs no licence. Schoeman en

Venote (Raadgewende Siviele, landbou en Strukturele Ingenieurs) is busy with the water rights in

collaboration with DWAF for the total 510ha

Of this 510ha only 109,1ha are already developed through funds from Department of Agriculture

and Rural Development, Bojanala District Municipality, National Development Agency and The

Department of Rural Development and Land Reform.

1.1 The Department of Agriculture and Rural Development supplied the Co-op with two

Tractors one New Holland td90 and one New Holland Tt55, one two Shear Plough, one 2 ton

Trailer, three hand Mist Blowers and tiller R 1 386 457-00 in total

1.2 The Bojanala District Municipality award was used for Computer system, printers, 1000

crates, soil preparation and debussing R200 000-00 in total

1.3 The National Development Agency funds was used for 4 x Clock Machines, Pump station,

surface pipes for 12ha, Barrage in river, seedlings, fertilizer, pesticides and Hyundai cold

room bakkie R 1 650 600.00 in total

1.4 The Department of Rural Development and Land Reform funds was to complete the 21,7ha

drip irrigation R976 438-23; New 21,7ha Drip irrigation with two 11ha pivots R3 742 035-

86; Pack House and office R5 855 369-48; Ablution Block R 991 280-73; Bore hole and pump

with electrical R 77 976-00; Water tanks and stands with equipment R 75 669-48; Eskom

R70 000-00; Fencing R 583 474-80; Production Cost R 3080 764-10; Implements R300 150-

00. On 20/03/2012 we negotiated and took over the AFF developed 21,7ha and buildings

for the amount of R290 942-10. This amount was taken from the budget for implements,

this development was evaluated for the amount of R 2 698 030-00 we also paid the



1.5 seedlings 2ha Cabbage, 1,6ha Spinach, 1,6ha Tomatoes, pesticides, fertilizer and repairs on

irrigation system, a total of R500 000-00 was spend included R290 942-10 as take over

R15 753 166.68 in total

1.6 When fully developed this project will create 1500 – 2000 jobs.

There are 6 boreholes on the 510ha farm that are not equipped at the moment.

1.6 THE TOTAL FARM DEVELOPMENT:

9 x 10ha under drip irrigation for open field production

9 x 11.7ha under shade netting for production under protection with drip irrigation

18 x 11ha pivot irrigation for various crop production ex: Grain & Sunflower

2 x 11ha pivot irrigation for Lucerne

100+ heated tunnels for tunnel production ex: Peppers, Tomatoes & cucumbers

10x Broiler units for 25000 chickens each

2x 3500 square meters Pack houses

1x Factory for feed production

2x Storerooms

11 x Ablution blocks

1 x Workshop, and Water Pipe line from Klipvoor Dam

Infrastructure Dehydration plant

Infrastructure for Training Facility with workshops

Nursery, Water Catchment Dam and water purifying system, Game

Infrastructure for canteen at pack house

2. PRODUCTION WHEN TOTAL DEVELOPMENT IS DONE:

Will be vegetable production; each farmer will receive 12ha open fields, 7.2ha shade netting a

total of 21,7ha under drip irrigation and 10 heated tunnels, each tunnel 323 square meters in

total 3230 square meters per farmer. The produce will be of the highest quality and standards

specifications set by the major retail groups and markets in South-Africa. These products will

be packed and delivered from the Pack house to the major retail groups and markets at the

best set prizes. The farmers will each also receive a 2 x 11ha pivot for Crop production, 2 x

11ha pivots will be planted collectively with Lucerne. In total 220ha will be under pivot

irrigation. Each farmer will also receive a broiler unit for 25000 chickens. The crop and

Lucerne will be delivered to the factory for palatalizing as feed for the Broilers and will also be

sold to the feedlot next to the project run by the Bojanala regional district and other markets

and the game farm. From the feedlot we will buy the manure for the fields. Although each

farm will operate independently from each other the Co-op will be manage as a collective,

when using this method we can make each farmer viable and sustainable.



3. AQUACULTURE PROJECT, CARAVAN PARK AND GAME RANCH

The Toloane River runs next to the farm and is a consistent source of water. An estimated 24ha dam

will be build in the river with a in and out flow of water. The project requires water through a pipeline

from Klipvoor Dam 10km from the project. This will ensure that there will be sufficient water to the

farm for irrigation and for the water purifying plant. The dam will also be used for the Camping and

Caravan Park as well as for the game farm with selected animal breeding and for a well developed

aquaculture project. If this is run correctly it can be a great tourist attraction and can also create jobs

and generate income. This will be for the benefit of the Jericho community and the Tribal authority. A

Water purifying system must also be implemented to provide the Jericho Community and

surrounding villages with clean drinking water.

The Aqua Project can employ 40-50 people

The Cooperative consists of the following members, all community members of the

historically disadvantage community of Jericho:

Rakgotho Onnica (Mrs) - 54 year old Female, with 5 members living in household

Bendlele Anna (Mrs) - 48 year old Female, with 7 members living in household

Mabiletsa Magdeline (Mrs) - 40 year old Female, with 8 members living in household

Mashego Silvia (Mrs) - 62 year old Female, with 5 members living in household

Thage Johanna (Mrs) - 52 year old Female, with 6 members living in household

Kekana Kate (Mrs) - 53 year old Female, with 4 members living in household

Thamage Andrew (Mr) - 36 year old Male, with 9 members living in household

Maiketso Jacob (Mr) - 31 year old Male, with 4 members living in household

Mashala Orphen (Mr) - 38 year old Male, with 9 members living in household

4. MENTOR FOR BANA BA KGWALE PRIMARY COOPERATIVE Jimmie Painter – Will Mentor and manage the project

He is a successful experienced farmer in various vegetable and crop production,

tunnel production, broiler production and Hydro phonic production.

He done his mentorship and assessor certificate through Mitanoya. He is an

accredited mentor on Government database and will mentor Bana Ba Kgwale

project. He will train and transfer skills to all the farmers and labourers.



5. PROJECT COST: FOR THE TOTAL DEVELOPMENT ESTIMATED 72ha Shade net structures R 4 924 800.00

100x Greenhouse heated tunnels R 7 322 334.00

20 x 11ha pivot irrigation R14 727 529.00

195.3ha drip irrigation R18 950 786.00

Implements & tractors R 5 923 827.60

Pack house R 6 855 369.48

Pack house equipment R 3 800 000.00

Ablution Block R 991 280.73

10 Small Ablution Blocks R 1 000 000.00

Solar Panels R 1 600 000.00

Office equipment R 350 000.00

Broiler units x10 R 7 000 000.00

Factory R 1 200 000.00

24ha Water Catchment Dam with purifying system R35 756 401.16

Fencing R 920 000.00

Transport R 6 336 835.20

Eskom R 670 000.00

Nursery R 2 000 000.00

Infrastructure dehydration plant R 10 000 000.00

Infrastructure for Training Facility R 10 000 000.00

Infrastructure for canteen R 1 700 000.00

Infrastructure for Piggery R 5 500 000.00

Production Cost R20 000 000.00

Total amount required for project estimated at: R 150 000 000.00

RECIEVED FUNDS:

The Department of Rural Development and Land Reform R 15 753 166.68 Implemented

NDA R 1 650 600.00 Implemented

Bojanala Municipality R 200 000.00 Implemented

The Department of Agriculture and Rural Development R 1 386 457-00 Implemented

TOTAL RECIEVED R 18 990 223-68



6. THE FARM INCOME SINCE PROJECT STARTED IN MARCH 2012

Period 23 March 2012 to 22 April 2012 R 64 146-96

Period 23 April 2012 to 22 May 2012 R 76 412-80

Period 23 May 2012 to 22 June 2012 R 71 274-26

Period 23 June 2012 to 22 July 2012 R 49 851-38

Period 23 July 2012 to 22 August 2012 R 67 675-12

Period 23 August 2012 to 22 September 2012 R 205 035-67

Period 23 September 2012 to 22 October 2012 R 62 826-04

Period 23 October 2012 to 28 February 2013 R 427 097-77

TOTAL INCOME R 1 024 320-00

7. THE DEVELOPMENT OF THE BANA BA KGWALE CO-OP PROJECT WILL BE

DONE IN PHASES, THIS PROJECT ALREADY HAVE A LETTER OF ITNTENT

FROM PICK n PAY FOR PRODUCE FROM THE PROJECT AS SOON AS PACK

HOUSE IS COMPLETE AND AUDITED.

7.1 Phase one was to develop 65,4ha irrigation

a) The development was for two 21,7ha Drip irrigation blocks and two 11ha Pivot

irrigation systems in total 65,4ha, and Ablution block, Pack House, Tanks and stands,

bore hole, GWM bakkie, Eskom power lines and production cost

b) The development was increased to 65,1ha Drip irrigation blocks and 44ha Pivot

irrigation systems in total 109,1ha was developed with funds received instead of 65,4ha

c) Also extra store room, pesticide store, 8 ton TATA truck, 2006 GWM bakkie, Foton

Tractor and implements this extra development was evaluated for the amount of

R 2 698 030-00

d) In the 1st phase only the Pack House that’s still needs to be completed

e) The income from the production is applied into operational cost of the farm.

7.2 The second phase require the following estimated funds

This is in prioritized following order needed immediately:

a) Production input cost for the 1st development R 5 000 000-00

b) High clearance Tractor and tractor boom sprayer R 400 000-00

c) Fine seed vegetable planter R 196 825-00

d) Office equipment for 6 x Offices and 2 x Board Rooms R 350 000-00

e) Combination Rotovator and seedbed ridge maker R 250 000-00

f) The infrastructure and equipment for the Nursery R 2 000 000-00



Also

g) Maize planter R 350 000-00

h) Diesel tanks and stands R 35 000-00

i) The infrastructure and equipment for the canteen at the pack house R 1 700 000-00

j) The water reusing system and reservoir at pack house R 300 000-00

k) The infrastructure for dehydration plant R 10 000 000-00

l) The pack house equipment R 3 800 000-00

m) The infrastructure and equipment for the Training facility R 10 000 000-00

7.3 THE FUNDS REQUIRED MAKING THE PROJECT SUSTAINABLE FOR

NOW: (CRITICAL Dec 2012) THIS FUNDS ALREADY APPROVED BY

DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORM

7.3.1 PRODUCTION INPUT COST FOR 1ST DEVELPMENT

Seedlings and seeds

Compost

Fertilizer

Pesticides

Soil Preparation

Debussing

Tomato poles

Twine

Bind wires

Wages

Eskom

Administration cost

Maintenance

Packing Material

TOTAL REQUIRED R 5 000 000-00

7.3.2 IMPLEMENTS

High Clearance Tractor (We plant on ridges and if tractor is standard it damages the

plants like we currently experience)

800 Litre Tractor boom spray to secure the proper cover of plants with pesticide and

foliar spray to make it sufficient.



Combination Rotovator and seedbed ridge maker this will give us the correct seedbed

and reduce the cost

Fine seed vegetable planter, to plant seed directly in soil, reduce cost with the correct

plant population for a higher yield

TOTAL REQUIRED R 846 825-00

7.3.3 EQUIPMENT

Office equipment for 6 x Offices and 2 x Board Rooms, this equipment includes tables,

chairs, cabinets, couches, window blinds, office air cons, notice and white boards,

proxy’s for board rooms

TOTAL REQUIRED R 350 000-00

7.3.4 INFRASTRUCTURE AND EQUIPMENT FOR THE NURSERY

1ha Tunnels – Covering 10 234 square meters

10 000 seedling trays

Cables and poles for seed tray support

Micro irrigation system

Grow mediums and compost

Floor covers

TOTAL REQUIRED R 2 000 000-00

TOTAL REQUIRED FOR NOW :( CRITICAL Dec 2012) R 8 196 825-00



7.4 THE PHASES THAT STILL REQUIRE FUNDING IS

1. PACK HOUSE EQUIPMENT

2. INFRASTRUCTURE AND EQUIPMENT FOR CANTEEN

3. 7 X 21,7HA DRIP IRRIGATION SYSTEMS

4. 16 X 11HA PIVOTS IRRIGATION SYSTEMS

5. INFRASTRUCTURE AND EQUIPMENT FOR TRAINING FACILITY

6. TRACTORS, IMPLEMENTS AND PLANTERS

7. 72HA SHADE NET STRUCTURES

8. 100+ X GREENHOUSE HEATED TUNNELS AND EQUIPMENT

9. BROILER UNITS X 10

10. ABLUTION BLOCKS

11. INFRASTRUCTURE AND EQUIPEMENT FOR DEHYDRATION PLANT

12. 24HA IRRIGATION AND WATER PERIFYING DAM WITH CAMPING AND GAME RANCH SIDE

13. WATER PERIFYING PLANT

14. WATER PIPLINE FROM KLIPVOOR DAM TO PROJECT

15. FACTORY FOR FEED MANUFACTORING

16. PRODUCTION INPUT

17. PIGGERY

18. GAME AND GAME RANCH

19. COLD ROOM TRUCKS

20. INFRASTRUCTURE AND EQUIPMENT FOR SECOND PACK HOUSE



8. INTRODUCTION TO DEHYDRATION PLANT

Dehydrated vegetables have been produced in South Africa for many years. As a ready-to-prepare

and easily stored product, it is eminently suitable for industrial feeding and the housewife.

.

Dehydration plants mission is to provide all our customers with products of acceptable product

quality and safety with good service levels, to treat all our suppliers on an equal basis with fair and

ethical business practices, give all our employees equal opportunities and treat them with respect

and dignity and to treat our environment with the necessary understanding, care and respect.

The factory will make use of its own farm and will also make use of out growers. There is big

potential for expanding the network of farmers due to reasons such as sustainability and crop

rotation. We will also continuously work on new product development and processes

Products

We will specialize in the production of top quality dehydrated vegetables.

Our main products will be;

Cabbage, Onions, Carrots, Potatoes, Green beans, Sweet potatoes, Mushrooms, Leeks, Mixed

vegetables and Bell peppers.

Any vegetables can be dried on request.

Products will be available in the following grade sizes; Kibbles, Flakes, Mince, Granules and Powder.

Trials will be run on various new products: Sweet corn, Beetroot, Pineapple, Cauliflower, Broccoli,

Bananas and Strawberries.

Overview of the Dehydration Process

• Vegetables transported to facility after harvesting

• Vegetables washed and de-stoned

• Root vegetables, carrots, potatoes etc peeled

• Sorted

• Cut



• Blanched

• Dehydrated

• Bulk packing

• Final packing (metal detector)

• Dispatch to Customers

The factory will use a heated air, in enclosed tunnel, continuous belt dryer to dehydrate the

vegetables. The hot air is forced through the freshly processed vegetables by high pressure fans to

remove moisture from the products.

Quality Parameters

• Final Moisture content– 5.5 % maximum

• Grading – size and quality – colour and cut

• Storage – Products can be stored for 12 months

• Traceability - field to fork

A food safety and quality management system that meets HACCP standards and requirements will

be in place. All our products will have full traceability from source to client. In addition all products

will be both Halaal and Kosher certified. This product can easily be stored for 12 months.

CLIENT LIST

We will supply our product as an industrial ingredient to the soup and sauce industry and also have a

great potential in direct uses. We will deal with all the national food companies and will supply a lot

of well-known brands.

THE MARKET AND IMPORTS

South Africa is almost a net importer of dehydrated vegetables. A lot of products are being imported

mainly from China and India and can be supplied locally with the right planning and vegetable

growing programmes in place. The local market for dehydration vegetables alone adds up to a value

of about R100 mil, this excludes the spice and herb industries.



9. THE TRAINING FACILITY

The North West Province, like any other Provinces deals with disparities particularly in skills capacity

and Agricultural projects pertaining to the general community. At community level the province is

faced with unemployment, adult illiteracy level reaching 60%, and who don’t have the necessary

skills for the working environment. These are particularly true with regard to our Skills Audit in our

municipalities and the community at large. AgriSETA accredited training will be provided. Jimmie

Painter was already requested by Lonmin Platinum Mine to assist in Portable Skills Programmes. This

Skills Programmes for the mines in accordance with the Social and Labour Plan, the company is

committed to assist employees with a portable skill to support sustainable development and create

self employment in the informal sector. All employees trained on Portable skills will be linked to the

Supply Development data base in order to allow them to be linked to small business opportunities.

Target Population for the mines

- Cat 3-9 employees (semi literate)

- Employees aged 50 years and older

- Employees that have been affected by medical repatriation

- Employees that have been affected by down scaling

Portable Skills Training programs that is required by the Mines:

- Brick laying – Plastering - Painting and decorating – Carpentry - Electrical assistant- Plumbing- Pipe

laying

- Paving and slab laying- Tiling- Brick making- Fencing- Welding - Manhole construction- Laying of

water mains

- Lying of sewers- Storm water drainage system- Concrete reinforcing- Professional Cookery- Sewing

- Office cleaning- Candle making- Garden Maintenance- Pest control- Flower arranging- Crop

production

- Vegetable farming- Poultry farming- Cattle farming- Livestock

Target Population for the communities in agricultural projects and graduates

- Youth

- Community members in principal

- Disabled people

- Unemployed graduates in the community



INFRASTRUCTURE (TRAINING FACILITY)

The building required as training facility will have class rooms and sleep facilities for 60 students +,

kitchen and dining room with equipment, reception and office and office equipment (tables, chairs,

air cons, proxy’s) Workshops for training boilermakers, fitters and welders. Funds required for this

buildings will be+ R10 000 000-00.

9.2) LEARNERSHIP AND SKILLS PROGRAMS FOR THE FARMERS AND LABOURERS

This will be done in Learner ship and Short Skills Programmes NQF level 1. These skills

development programmes will be funded by the Department of Labour and other

funders

After completion of each programme learners will receive a Certificate of

Competence

Learner Ship programmes 8 – 12 months – The 9 Farmers of Bana Ba Kgwale Co-op

will be the first learners in this programme. Three will start in Pack House

Management and six in Plant Production.

Short Skills Programmes 3 – 20 Days – All Labourers, will be trained and educated in

terms of the skills programme.

A detailed example is attached to the business plan for the learner ship programme

Negotiations with TUT for Agricultural Graduates to do their practical’s on the farm,

will add enormous value to the project and the farmers. Packages for learners from

mines and also those not involved in the project will be added after completing their

courses. The Training facilities visions is to give even aftercare through mentorship

programmes.

9.3) SKILLS DEVELOPMENT PROGRAMMES AND JOB CREATION IN COMMUNITIES

THROUGH THE TRAINING FACILITY

Social Development Programs

9.3.1 The aim is to elevate poverty and to address unemployment rate.

To identify, monitoring and mentoring the exciting and non exciting

agricultural projects.

To assist members of the Communities in registering any agricultural related

business with Companies and Intellectual Property Commission.

Coordinate and facilitates funds for all Agricultural enterprises in the area.

Coordinate access to markets

Job creation



To have Selected branding on all the agricultural produce in the next five

years

9.3.2 Community building projects.

The main focus will be on resuscitating the small, medium and micro enterprises, all

this small projects are manage and supplied with input from the manger project, like

Bana Ba Kgwale Agricultural Primary Co-op. Produce when matured will be bought

back from the small projects, packed and supplied to selected markets.

Development and construction of small vegetable tunnels for small projects.

Construction of broiler units from 100-4000 chickens /unit

Construction of Laying hen units

Training and empowerment of young unemployed graduates and

unemployed people.

Earthworm production projects for compost

Engage struggling projects and emerging farmers in each district surrounding

the major project to build capacity and sustainability.

Each project should be mentored continuously to make it sustainable

9.3.3 Schools, clinics and old age homes

Teach and mentor learners, and those involved in agricultural projects, start

projects in schools to recruit potential young farmers.

The seeds and seedlings will be supplied to the smaller projects from the

established manger farms.

Erect simple, workable and cost effective systems to start the projects and

create jobs

To empower women and the disabled to run the project



10. FARMING (Crop Production) VALUE ADDING

10.1 Value Adding on Cash Crops (Infrastructure factory)

Maize

Animal Feeds for cattle, poultry and piggery

Mieliemeel

Biodiesel

Soya beans

Animal Feeds

Oil

Biodiesel

Sunflower

Animal Feeds

Oil

Biodiesel

Bedding in broiler units

Dry beans

Sorghum

Animal Feeds

Sorghum beer

Mabele meal

Wheat

Animal Feeds

Flour

Lucerne

Animal Feeds

10.2 IRRIGATION (Open fields)

Vegetables



All above crops

10.3 TUNNEL PRODUCTION: (Infrastructure Heated tunnels)

Vegetables with long self live.

Flowers

Strawberries

10.4 SHADE NET STRUCTURES: (Infrastructure Shade net structures)

Vegetables with long self live

Strawberries

Grapes

Stone fruit

10.5 BROILER PRODUCTION :( Infrastructure Broiler Units)

Chickens Live

Meat Production

Manure to make feed for cattle

Manure to make compost for fields

10.6) LYING PENS:

Egg Production

Chicken manure to make feed for cattle

Compost

10.7 FEEDLOT:

Meat Production

Manure to fields

Manure to make compost

10.8 CATTLE AND GAME :

Meat Production

Breeding

10.8.1 DAIRY:

Milk Production



Cheese Production

Yogurt Production

10.8.2 EARTHWORM PRODUCTION:

Fertilization

Natural farming methods

Manure for compost

Earthworms for soil

11. AGRO-PROCESSING

11.1 Animal Feeds manufacturing

Produce from the farm used to manufacture feed for the project and to

sell.

Chicken

Cattle and Game

Pigs

11.2 Value Adding on agricultural produce (Infrastructure Dehydration plant)

Cutting of vegetables for mines, Correctional Services and selected

markets

Dehydrations of vegetables for selected markets and export

11.3 Construction of Agricultural Structures

small tunnels for social development program

small broiler units for social development program

infrastructure for feedlot

infrastructure for pack house

infrastructure for ablution blocks

infrastructure for broiler/laying pens

Building of shade net structures

Infrastructure for piggery



12. JOB CREATION

This project already created the following employment:

Infrastructure Development – 44 Jobs created

Farming activities 146 Labourers in fields

The 146 labourers is : 60 youth males, 22 youth females, 29 males and 35

females all of the Jericho community

Each of this households have between 6 – 8 dependants

IF TOTAL 109,1HA IS IN PRODUCTION

Production: Labour in Fields

1. Permanent Labour – 150

2. Temporary - 54

TOTAL IN FIELDS - 204

Pack House Personal – 56 Jobs will be created

Drivers - 10

TOTAL JOBS IF THE 1ST PHASE IS IN FULL PRODUCTION - 270 JOBS

IF PROJECT IS TOTALLY DEVELOPED 1500 – 2000 JOBS WILL BE CREATED

TOTAL WAGESES FOR THE PRODUCTION CYCLE THAT WILL BE PAID OUT FOR LABOUR=

R 2 160 000–00 THIS DOES NOT INCLUDED THE WAGES FOR EMPLOYEES IN

INFRASTRUCTURE DEVELOPMENT.

CONTRACTORS RESPONSIBLE FOR INFRASTRUCTURE DEVELOPMENT DID MAKE USE OF

LABOURERS FROM THE JERICHO COMMUNITY

13. PRODUCTION AND PRODUCTION COST SEE ATTACHED PRODUCTION INPUT FOR

VARIUS PRODUCTS.



14. BUSINESS CONSEPT:

In a quest to evolve from dependency and growth on the value already achieved in

the last 3 years through the AFF initiative, the community members took a

concerted effort to reorganizing themselves by harnessing the knowledge,

registering Bana Ba Kgwale Agricultural Primary Cooperative (BBKAPC) with the

Department of Trade and Industry and consolidating a business proposal for funding

submission

The community members, with the help of the Department of Agriculture have

registered a cooperative known as “BANA BA KGWALE PRIMARY COOPERATIVE LTD”

(BBKAPC).

The vision of strategy of agri-business has been refined and financial support is

required to initiate the implementation of the strategy.

15. VISION AND MISION:

To be the emerging black farmers of choice, producing good quality agricultural

products effectively for the growing demand, with our own set markets without any

middleman.

Mission: To create a working environment that allows for greater, value and benefits

for all our stakeholders - suppliers, employees, shareholders, clients and the

environment.

The use of most recent and cost effective farming techniques

The economical use of natural recourses

Trained and educated workforce

Proper maintenance of implements

Ability to control and ensure minimum standards of products

Marketing of products

To deliver products to the markets timorously

Access and create new markets for the products

a. Goals and Values

BBKAPC aims to harness its agricultural knowledge by creating farms with facilities

that will enable to provide its products to high-value clients such as Pick n Pay,

Woolworths, Fresh Mark, Shoprite, Checkers and all Fresh produce markets in South

Africa. In future this project wants to export produce to foreign countries also.

BBKAPC aspires to grow through the following values:

Quality Agri-products

Focus of Customer

Deliver as dictated by demand, according to high quality standards

Increase revenue, reduce cost, gain and harness knowledge



b. Funding Investments

The funding will be used to prepare the new fields developed for vegetable produce

and Production Cost. The Tractor and implements required will enable the sufficient

application of pesticides, foliar spray and will increase the yield potential on the

farm. The Nursery will help to reduce the production cost, create jobs and boost the

effectiveness of the farm and the plant program. This funding will allow BBKAPC to

become financially independent.

In capital expenditure (CAPEX) term, the funding investment aims to acquire the

following assets/tools

High clearance Tractors and tractor boom sprayers

Fine seed vegetable planter & Maize planter

Office equipment for 6 x Offices and 2 x Board Rooms

Cold room Trucks

Implements, tractors & trailers

Diesel tanks and stands

The pack house equipment

Irrigation equipment

In capital expenditure (CAPEX) terms, the funding investment aims to acquire the

following immovable assets:

The infrastructure and equipment for the Nursery

The infrastructure and equipment for the canteen at the pack house

The water reusing system and reservoir at pack house

The infrastructure and equipment for dehydration plant

The infrastructure and equipment for the Training facility

Infrastructure for small ablution blocks on each 21,7ha

Infrastructure and equipment for broiler units

Infrastructure and equipment for water catchment dam and purifying

system

Infrastructure and equipment for heated tunnels

Infrastructure for shade net structures

Infrastructure and equipment for feed manufacturing

Infrastructure for remaining irrigation development

Included in the Funding are also the operational items (OPEX) that are not capital in

nature. These include the following:

De-Bushing

Soil Preparation, Seedlings, Seed, Fertilizers, Pesticides, Compost



Annual rent

Electricity

Diesel

Wages

Safety clothes and equipment

Packaging

Crates

Boxes and packing material

Transport of produce

c. Current Investment

The development was for two 21,7ha Drip irrigation blocks and two 11ha Pivot irrigation

systems in total 65,4ha, and Ablution block, Pack House, Tanks and stands, bore hole, GWM

bakkie, Eskom power lines and production cost

The development was increased to 65,1ha Drip irrigation blocks and 44ha Pivot irrigation

systems in total 109,1ha was developed with funds received instead of 65,4ha

Also extra store room, pesticide store, 8 ton TATA truck, 2006 GWM bakkie, Foton Tractor

and implements this extra development was evaluated for the amount of R 2 698 030-00

The 1st phase development is completed

The income from the production is applied into operational cost of the farm.

Department of Agriculture and Land Reform as received is:

21,7ha Incomplete Drip irrigation Block – R 396 552-00

30kw Motor R 76 000-00

3 x Mist blowers R 28 905-00

1 x New Holland td90 4 x 4 Tractor & Tiller R 461 000-00

1 x New Holland Tt55 Tractor, Trailer & Plough R 424 000-00

TOTAL R1 386 457-00

National Development Agency R 1 650 600-00

12ha Surface irrigation pipes

Pump station and Barrage in river

H100 Hyundai with Cold room

4 x Clock Machines

Fertilizer, Pesticides and Seedlings

Bojanala District Municipality Awards R200 000-00

Computer System

Printers

Soil Preparation

1000 Crates



Department of Rural Development and Land Reform R15 753 166-68

Pack House

Ablution Block

Take over first 21,7ha development, Tractor and Implements

Completion of 21,7ha halve developed farm

New 21,7ha Drip irrigation

4 x 11ha Pivots

8 Ton TATA Truck

1 x New GWM and 1 x Second hand GWM Bakkie

9 x Farmer, Mentor and Labourers Salaries

Eskom Power Lines

Fertilizer, Pesticides and Seedlings

DWAF water licence application fees

Part of the advantage of the location of the farm is that:

Eskom Power line passes through the farm already

The farm is placed right next to the flowing river that never runs dry

The farm has three different types of soil

The farm is totally fenced, but would need refurbishing

16. MARKETING PLAN

16.1 Relationship with Markets

Relationship with Pick n Pay with letter of intent to buy produce from the

Bana Ba Kgwale Co-op, the new markets Woolworths, Shoprite’s, SA

Government and Mines will be negotiated with to secure the best

relationship and prices for the project.

16.2 Marketing Objectives

Turnover of 5million within the third year of operation;

Attain 20% of the total market share

100% customer service;

Experience a growth in new customers who are tuned into long –term

customers;



To established ourselves as the preferred vegetables supplier in Brits

community and the whole North West province.

To produce good quality produce that is up to standard through continuous

mentorship by farmers and mentors.

Production is done in accordance with the latest proven techniques. All

products produced according to Global GAP standards and standards set by

the major retail stores in South Africa. BBKAPC will in time, obtain Global

GAP certification.

16.3 Marketing Strategies

The business overall marketing strategy will be to create an image of offering high

standard of customers service to Retail markets, surrounding community and the

rest of the customers in general. Three Co-op Members will receive AgriSETA

Accredited training in Pack House Management esc.

16.4 Service Strategy

Expand production offering into new categories;

Drop production lines that fail to attract and replace them by new ones

The use of most recent and cost effective farming techniques

The economical use of natural recourses

Proper maintenance of implements

Ability to control and ensure minimum standards of products

Marketing of products

To deliver products to the markets timorously

Access and create new markets for the products

16.5 Pricing strategy

The vegetables production price as per competitor’s price because of cost serving on

packaging and processing. Different price per fresh product and processed product

will be charged

16.6 Promotion

Promotion campaigns will focus on emphasizing the economic price of the product

and the freshness of the product. The message will be communicated to target

markets throughout price lists circulated locally. Different messages will be



communicated to the different target customers, but the messages will emphasize

our uniqueness in terms of our quality product offering.

16.7 Place/Location Strategy

The location of the vegetable production operations, relative to the location of the

customers will play a vital role as it determines the attractiveness of the business

Overall, the strategy adapted by Bana Ba Kgwale production will be to penetrate the

market by targeting local retail and later on the export markets. The proposed

linkage will facilitate this within the proposed export markets.

16.8 Market Forecast

At Political level, the adoption of Affirmative Procurement policy, Black Economic

Empowerment (BEE) Policy and much such policy by the Government has made it

mandatory for government and the private sector to deliberately transcend with the

members of the previously disadvantaged communities (PDI) to empower and

capacitate economy of South Africa

This is directly and indirectly encouraging horizontal and vertical linkages that open

up a whole new set of business opportunity for people and business like ours. At

the local level, many people are not yet active in the vegetable production industry

thereby marketing the sector lucrative for those that are already in it, particularly

those with PDI status.

Northwest Province is faced with a number of challenges, which in the Provincial

Integrated Development Plans would want to manage. These challenges are as

follows:

The North West Province is largely rural

North West wants to grow its agriculture sector

Unemployment levels are very high, and

The global economic meltdown seem to be affecting sectors such as mining,

agriculture etc., causing a spiralling effect on higher unemployment levels

17. LEADERSHIP, MANAGEMENT AND STAFF



Vegetable production is a highly labour intensive project. BBKAPC will hire in excess

of more than 1500 employees. The employees would be divided into teams,

managed by team leaders that report to the farmer who will report to the mentor.

All the employees of BBKAPC will be trained and educated to the benefit of the

project overall. Leadership of BBKAPC will be centred on the board of BBKAPC with

the project manager and mentor who account monthly and annually in an AGM,

providing AGM reports.

18. BENEFITS FOR THE NORTH WEST, BOJONALA DISTRICT

Northwest Province is faced with a number of challenges, which in the Provincial

Integrated Development Plans would want to manage. These challenges are as

follows:

The North West Province is largely rural

North West wants to grow its agriculture sector

Unemployment levels are very high, and

The global economic meltdown seem to be affecting sectors such as mining,

agriculture etc., causing a spiralling effect on higher unemployment levels

This funding project will create value that would be beneficial to Madibeng Local

Municipality, Bojanala Municipality district and North West Province. These benefits

include (but not limited to):

Initial Employment of more than 250 people to start the project

Contribution into the agriculture sector of Bojanala, North West Province

Growth on emerging farmer knowledge capital, and

Establishment of a sector that will grow, and will potentially increase

employment, production and direct growth into the Agri –business sector.

19. ENTITY REGISTRATION

Members of the community, with the assistance of the Department of Agriculture

have registered a Cooperative with the Department of Trade and Industry, referred

to as “BANA BA KGWALE AGRICULTURAL PRIMARY COOPERATIVE”. The Cooperative

aim to comply with all the licensing and legislative requirements prescribed in South

Africa.

20. Black Economic Empowerment and Affirmative Action Programme

BBKAPC is a truly Black Empowerment entity. Its BEE status is reflected by its

community members (3 Males & 6 Females) who are from the historically

disadvantage community in Jericho, Bojanala District. BBKAPC employed members



of the historically disadvantage individuals in excess of 250 for the first phase

development, who ultimately assist in creating a bigger and powerful agri-business

BBKAPC, that can compete on the same scale as other successful white companies.

BBKAPC intends growing the knowledge capital of staff such that members of staff

understand the agri-business.

Knowledge will include knowledge on management and leadership, Agri expertise,

personal and professional attributes and trades.

The knowledge will be measured against:

Increase in quality of the produce

Tons of produce

Rate of produce

Input cost

Growth in sales

Growth in customer base

a. Delivery Partnerships

BBKAPC will work with, and in partnership with Madibeng Local Municipality,

Bakwena Ba Mogopa Traditional Authority, Bojanala District Municipality,

Department of Agriculture North West and National, Department of Trade and

Industry, Department of Rural and Social Development, NDA, Department of Land

Affairs, Department of Labour, SA Retail Stores, Tswane University of Technology

and all other Departments that will create a well cemented and oiled business

relationship.

21. SWOT ANALISIS

The North West province has an estimated population of 3.7 million people. It is the

largest contributor to South Africa’s mining sector responsible for 94% of the

country’s platinum, 46% of the granite and 25% of the gold production. Mining

accounts for nearly 60% of economic activity centred in Klerksdorp and 60% of the

economic activity in the platinum mines of Rustenburg.

21.1 STRENGTH

21.1 The strength of the business will be stem from the following aspects;

The powerful marketing strategies supported by the skills and expertise

management



The intimate industry of knowledge and familiarity with the needs of customers

The market proximity i.e. the strategic location advantage as compared to other

competitors to Tswane Fresh Produce Market and major retail groups

A secured long term growing contract from the Department Of Rural

Development and Land Reform, National Development Agents and Department

of Agriculture

A commercially recognised business model

Strong management and mentorship

Existing relationships

Existing infrastructure

Awareness of social and economic difficulties facing previously disadvantaged

farmers

A strong drive from both the Government and business to address the

difficulties faced by previously disadvantaged farmers

Firmly set as a BEE project

Continuous demand for products

No volatility in price of produce

Commercial business model accepted by corporate business in South –Africa

Providing a real solution to address the needs of the previously disadvantaged

farmers

21.2 WEAKNESSES:

The major weaknesses identified in the business set up are as follows;

The lack of a strong brand image

The shortage on financial resources to finance operation

Farming is perceived as a high risk activity

Initially capital intensive

Expansions is dependent on capital loans and grants



21.3 OPPERTUNITIES

Opportunities in this industry come from the following factors

The fast growth rate of Rustenburg and Brits leading to an increase in the

demand for vegetable and crop productions

Ability to produce a better grade that currently available from producers within

the markets

The farm to be used to its fully equipped with a long term contract

Government expectation of Black Economic Empowerment

Rural development

Up liftment programs

Skills and knowledge development

Previous disadvantage farmers eager to participate in the Agricultural economy

of South-Africa

21.4 THREATS

The outbreak of diseases

The likely entry of other players if the market proves attractive and profitable

The politics associated with the industry

High increase of input cost

Quality of products might not be up to standard

Expansion and growth might be faster than which can logistically be handled

Well-established commercial farmers

Depletion of social budgets for a specific financial period limiting expansion

Inflation and the effect on cost such as transport etc

The price might be too static to accommodate sudden rises in production cost

Natural elements ex: Wind, hail, frost, to must rain etc.

22. CONCLUCION

With the initial start-up capital, BBKAPC will help acquire its initial business

capability to produce fresh quality produce. In a period of 2 years, BBKAPC wants to

grow the expertise, the capital outlay and the means to compete. In that period,

BBKAPC aspires to grow talent in more than 600 people and prepare its ground to be

able to grow and to produce triple the tonnage of produce in a period of 4 years

creating job opportunities for 1500 to 2000 people.

Documents

Copyright Bana Ba Kgwale/EJ Painter 2008-08-03 / …webapps.daff.gov.za/AmisAdmin/upload/BBKC NEW BUSINESS...510ha was allocated for this project by the Bakwena Ba Mogopa Traditional