Feasibility Study and Business Plan – Nkangala Goat Project

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(PTY)LTD.

Rational Objectives, Economic, Technological Sense

Reg. No.: 2004/009585/07 Incorporated: 20/09/2002

VAT Registra tion no: 4860204470 P.O. Box 461, Kokstad, 4700

Tel/Fax: (039) 727 1515 Cell: (083) 6307787 (Merida)

Cell: (083) 265 2652 (Adriaan) E-mail: merida@sc ientificroets.com or

adriaan@scientific roets.com Web: http:/ / www.scientific roets.com

Feasibility Study and Business Plan – Nkangala Goat Project

A Project funded by the Nkangala District Municipality

Produced by Dr Merida Roets, Mr Adrian Roets and Mr Zama Madik izela

July 2005

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TABLE OF CONTENTS

A Project funded by the Nkangala District Municipality.......................................................................................................................... 1 CHAPTER ................................................................................................................................................................................................ 9

1 .............................................................................................................................................................................................................. 9 Background and Overview of Current Status...................................................................................................................................................... 9

Project Background.......................................................................................................................................................................................... 9 Extent of co-operation and integration with other Government Departments and initiatives ...................................................................... 9 Current Funding .............................................................................................................................................................................................10 Job creation.....................................................................................................................................................................................................10 Expected outcomes of the project..................................................................................................................................................................10 Project Management ......................................................................................................................................................................................10

CHAPTER .............................................................................................................................................................................................. 11 2 ............................................................................................................................................................................................................ 11

Demographics of study area...............................................................................................................................................................................11 2.1 Demarcation of Thembisile Municipality .................................................................................................................................11

Population and education levels of Thembisile Municipality......................................................................................................................11 Employment levels and household income in the study area ......................................................................................................................20 Economic activities in Thembisile Municipality..........................................................................................................................................29

2.2 Demarcation of Dr J S Moroka Municipality ...........................................................................................................................38 Population and education levels of Dr J S Moroka Municipality................................................................................................................39 Employment levels and household income in the study area ......................................................................................................................40 Economic activities in the study area ............................................................................................................................................................41

CHAPTER .............................................................................................................................................................................................. 42 3 ............................................................................................................................................................................................................ 42

Product and Market Analysis .............................................................................................................................................................................42 Market Overview: Live Goats for Slaughter ................................................................................................................................................42 Market overview: Goat meat.........................................................................................................................................................................42

CHAPTER .............................................................................................................................................................................................. 49 4 ............................................................................................................................................................................................................ 49

Product Mix and Plant Capacity.........................................................................................................................................................................49 Nkangala Central Breeding Farm Production Scenarios..............................................................................................................................49 Contract Goat Growing Co-operatives .........................................................................................................................................................49 Goat Meat Processing Scenarios at Kwamhlanga Abattoir .........................................................................................................................50

CHAPTER .............................................................................................................................................................................................. 51 5 ............................................................................................................................................................................................................ 51

Materials and Inputs............................................................................................................................................................................................51 Goats...............................................................................................................................................................................................................51 Meat................................................................................................................................................................................................................51 Auxiliary materials.........................................................................................................................................................................................51

CHAPTER .............................................................................................................................................................................................. 53 Location and Site............................................................................................................................................................................. 53

6 ............................................................................................................................................................................................................ 53 6.1 Location ...........................................................................................................................................................................................53 6.2 Climate.............................................................................................................................................................................................53 6.3 Site and terrain.................................................................................................................................................................................54 6.4 Material vs. Market orientation.......................................................................................................................................................54 6.5 Human Resources............................................................................................................................................................................54

CHAPTER .............................................................................................................................................................................................. 55 Engineering and Infrastructure ...................................................................................................................................................... 55

7 ............................................................................................................................................................................................................ 55 7.1 Consulting Services.........................................................................................................................................................................55 7.2 Cost Estimates on the Kwamhlanga Abattoir Processing Plant, Hartebeestspruit farm and other farms ..................................59 7.4 Preliminary Layout drawings..........................................................................................................................................................71

CHAPTER .............................................................................................................................................................................................. 73

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8 ............................................................................................................................................................................................................ 73 Organisational arrangements..............................................................................................................................................................................73

Contract Goat Growing Co-operatives .........................................................................................................................................................73 Nkangala Goat Breeding and Production Co-operative...............................................................................................................................73 Kwamhlanga Goat Meat Processing Facility ...............................................................................................................................................73 Nkangala Goats (PTY) Ltd............................................................................................................................................................................73

CHAPTER .............................................................................................................................................................................................. 76 9 ............................................................................................................................................................................................................ 76

Human Resources...............................................................................................................................................................................................76 Estimated human resource requirements: Central Breeding Facility ..........................................................................................................76 Estimated human resource requirements: Goat co-operatives.....................................................................................................................76 Estimated human resource requirements: Kwamhlanga Abattoir ...............................................................................................................76 Training ..........................................................................................................................................................................................................76 Summary: Technical Training Cost Estimate...............................................................................................................................................77

CHAPTER .............................................................................................................................................................................................. 78 10 .......................................................................................................................................................................................................... 78

Implementation Scheduling................................................................................................................................................................................78 Project Implementation Plan .........................................................................................................................................................................78

CHAPTER .............................................................................................................................................................................................. 80 11 .......................................................................................................................................................................................................... 80

Financial and Economic Evaluation ..................................................................................................................................................................80 (Discussed in text and refer to attached Cash Flow Statements:..................................................................................................................80 Appendices A, B and C) ................................................................................................................................................................................80

APPENDIX............................................................................................................................................................................................. 81 Cash flow statements: Nkangala Breeding Farm.......................................................................................................................... 81

A ........................................................................................................................................................................................................... 81 APPENDIX............................................................................................................................................................................................. 90

Cash Flow Statements: Contract Co-operative Farms ................................................................................................................. 90 B............................................................................................................................................................................................................ 90

APPENDIX............................................................................................................................................................................................. 99 Cash Flow Statements: Kwamhlanga Goat Meat Processing Plant ............................................................................................ 99

C............................................................................................................................................................................................................ 99 APPENDIX...........................................................................................................................................................................................108

Layout plans...................................................................................................................................................................................108 D .........................................................................................................................................................................................................108

APPENDIX...........................................................................................................................................................................................109 Farm Hartebeestspruit ..................................................................................................................................................................109 235 JR site visit notes ....................................................................................................................................................................109

E..........................................................................................................................................................................................................109 APPENDIX...........................................................................................................................................................................................112

Co-operative farm visits infrastructure notes...............................................................................................................................112 F ..........................................................................................................................................................................................................112

APPENDIX...........................................................................................................................................................................................119 Kwamhlanga Abattoir site visit notes...........................................................................................................................................119

G .........................................................................................................................................................................................................119 APPENDIX...........................................................................................................................................................................................122

Co-Operative Groups visit notes ..................................................................................................................................................122 H .........................................................................................................................................................................................................122

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LIST OF TABLES AND FIGURES

FIGURE 2.1 MAP SHOWING WARDS 2,3,4,7,8,9,11,12,13,15,17,19,22,23,25,AND 30 OF THEMBISILE MUNICIPALITY................................................................................................................................................................................... 11

FIGURE 2.2 POPULATION GROUP WITHIN WARD 3 OF STUDY AREA ................................................................. 12

FIGURE 2.3 EDUCATION LEVEL OF THE POPULATION WITHIN WARD 3 OF THE STUDY AREA............. 12

FIGURE 2.4 POPULATION GROUP WITHIN WARD 11 OF THE STUDY AREA ..................................................... 13

FIGURE 2.5 EDUCATION LEVEL OF THE POPULATION WITHIN WARD 11 OF THE STUDY AREA........... 13


FIGURE 2.7 EDUCATION LEVELS OF THE POPULATION WITHIN WARD 14 OF THE STUDY AREA ........ 14








FIGURE 2.15 EDUCATION LEVELS OF THE POPULATION WITHIN WARD 24 OF THE STUDY AREA STUDY AREA 18





FIGURE 2.20 LEVELS OF EMPLOYMENT IN WARD 3 OF THE STUDY AREA........................................................ 21

FIGURE 2.21 ANNUAL HOUSEHOLD INCOME MEASURED IN 2001 IN WARD 3 OF THE STUDY AREA....... 21

FIGURE 2.22 LEVELS OF EMPLOYMENT IN WARD 11 OF THE STUDY AREA...................................................... 22

FIGURE 2.23 ANNUAL HOUSEHOLD INCOME MEASURED IN 2001 IN WARD 11 OF THE STUDY AREA .... 22




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FIGURE 2.36 THE DISTRIBUTION OF THE POPULATION ACCORDING TO OCCUPATION (WARD 3) ........ 29

FIGURE 2.37 THE DISTRIBUTION OF THE POPULATION ACCORDING TO THE DIFFERENT INDUSTRIES FOUND IN THE AREA (WARD 3) ................................................................................................................................................... 29

FIGURE 2.38 THE DISTRIBUTION OF THE POPULATION ACCORDING TO OCCUPATION (WARD 11) ...... 30

FIGURE 2.39 THE DISTRIBUTION OF THE POPULATION ACCORDING TO THE DIFFERENT INDUSTRIES FOUND IN THE AREA (WARD 11)................................................................................................................................................. 30















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FIGURE 2.54 MAP SHOWING WARDS 1,2,6,10,11,12,13,14,15,17,20,21,22,24,26,28 AND 29 OF DR J S MOROKA MUNICIPALITY................................................................................................................................................................................... 38

FIGURE 2.55 POPULATION GROUP WITHIN WARD 7 OF STUDY AREA............................................................. 39

FIGURE 2.56 EDUCATION LEVEL OF THE POPULATION WITHIN WARD 7 OF THE STUDY AREA............. 39

FIGURE 2.57 LEVELS OF EMPLOYMENT IN WARD 7 OF THE STUDY AREA....................................................... 40

FIGURE 2.58 ANNUAL HOUSEHOLD INCOME MEASURED IN 2001 IN WARD 7 OF THE STUDY AREA....... 40

FIGURE 2.59 THE DISTRIBUTION OF THE POPULATION ACCORDING TO OCCUPATION (WARD 7) ........ 41

FIGURE 2.60 THE DISTRIBUTION OF THE POPULATION ACCORDING TO THE DIFFERENT INDUSTRIES FOUND IN THE AREA (WARD 7) ................................................................................................................................................... 41

FIGURE 3.1 DRESSING OF GOAT CARCASS ..................................................................................................................... 43

FIGURE 3.2 CUTS OF A GOAT CARCASS (DONE AS SHOWN FOR LAMB) ............................................................ 44

TABLE 3.1 POSSIBLE INCOME IF THE CARCASS IS SOLD AS FRESH MEAT......................................................... 45

TABLE 3.2 POSSIBLE INCOME IF THE MEAT IS FURTHER PROCESSED TO ADD VALUE .............................. 46

TABLE 4.1 VALUE-ADDING TO 34 598 KG OF RETAIL BONELESS MEAT ............................................................... 50

TABLE 4.2 VALUE-ADDING TO 35 659 KG OF RETAIL BONELESS MEAT ............................................................... 50

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EXECUTIVE SUMMARY

The Nkangala Goat Project can consist of three Contract Goat Production Co-operatives, a Central Goat Breeding and Production unit, a collection activity, and slaughter and processing enterprise (based at Kwamhlanga Abattoir).

At the Central facility (Hartebeestspruit farm), a breeding herd of 600 does and 15 rams (purchased partially with a Land Bank loan of R 395 000) and building up to approximately 725 does within 2 years (2006 to 2008), can produce approximately 516 male kids for slaughter in year-1 and 602 male kids for slaughter from year 2. Four hundred female kids will be sold as production animals to surrounding Co-operatives in the first year, and 500 from the second year. Approximately 100 female kids will be retained in the flock every year as replacement animals. Male kids will be raised on the breeding farm (and by member Co-operatives) until 4 months of age (and up to 12 months of age) for slaughter at approximately 30kg. Approximately 60 male kids will be purchased from member Co-operatives per month by the Central facility. All male kids will be slaughtered at the nearby Kwamhlanga Abattoir and processed into salami, cabanossi and dried sausage in a processing facility (to be added to the existing facility). Whole carcasses, 4 and 6 cut, will also be sold as required. Offal sales (at approximately R 22 per kit) will be undertaken within the surrounding communities and from the kiosk on-site. Skins sales (at R 7 per skin) can be used to offset slaughter fees, but could also be collected and tanned (either hair-on or hair-off) at the Brits tannery. Tanned leather can be sold to processing operations (which could entail a further expansion to the project in the future) (See Chapter 4: Product Mix and Plant Capacity).

Three different sets of infrastructure for the entire operation is proposed (Chapter 7):

x Infrastructure at the Hartebeestspruit Farm for the Breeding and Production operation

x Addition of a processing facility at the existing Kwamhlanga abattoir

x Collection and handling facilities at each of three Contract goat Co-operatives

The total cost of infrastructure for the entire project is R 9 456 652.80

Member Co-operatives, who have already been trained in Goat Production through an MQA-NSF (Mining Qualifications Authority – National Skills Fund) Goat Skills Programme will receive further training (10 months) in a full NQF1 learnership: Animal Production (sponsored by the Agri-SETA) (See Chapter 9: Human Resources). These Co-operatives will receive training and mentorship to build farmer’s co-operatives that can contract with the Nkangala Central facility to grow goats, and will be assisted with marketing infrastructure which includes holding pens, loading ramps, scales, and crushes, on land made available through the Department of Agriculture and Local Municipalities participating in the project and which will be rented for a nominal annual fee.

The Nkangala Goat Project will enter into an agreement with the Kwamhlanga Abattoir operators (Tortello Investments (PTY) Ltd) to rent the meat processing section (to be added to the Kwamhlanga Abattoir). Offal will serve as a further income stream when sold to the surrounding communities of Moloto and Kwamhlanga from the kiosk on-site.

Training in aspects such as meat processing will be provided to employees of Nkangala Goats (PTY) Ltd to own and operate the processing business with profit sharing taking place with Tortello Investments (PTY) Ltd, the Nkangala DM, the Nkangala Breeding and Production farm and the Contract Growing Co-operatives.

Nkangala Goats (PTY) Ltd can be registered as a private company which is a Municipal entity. The infrastructure and land utilized by the business will be owned by the District Municipality, and can be rented by the business for a nominal annual fee. Majority shareholding will be held by the Nkangla District Municipality in partnership with the owners and operators of Nkangala Goats (PTY) Ltd. A method to transfer shareholding in the entity can be written into the shareholders agreement, at which time the

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Municipality can separate itself from the private company. The legal issues of relevance to this matter are explained in Chapter 8: Organisational Arrangements.

The facility will create employment for:

x 2 management personnel earning R 3 500 per month each

x 5 goat handlers earning R 1 500 per month each

x 2 trainers/extension officers earning R 2 000 per month each

x 8 meat processors earning R 1500 per month each

x Approximately 58 young goat farmers producing goats for the project

All costs of the facility will be covered by the income generated from products of the facility sold to various markets, especially the local markets of Moloto and Kwamhlanga. The facility can break even and make a profit if the scenarios sketched are adhered to or increased, if all products are sold, and if other expenses are not incurred.

The utilization of the R 1.6 million available for the project in 2005 by Nkangala DM is proposed in Chapter 7 and is summarized here:

Available 2005 R 1,600,000.00 Business plan R 50,000.00 Infrastructure R 1,391,448.54 120 Goats R 96,000.00 Social Facilitation (Institutional development) 3 months

R 60,000.00

Left R 2,551.46

Furthermore, the implementation of the project in its entirety needs to be guided by a specialist project manager, civil engineer and social facilitation staff and include a dedicated fund-seeking exercise. The appointment of such individuals should receive urgent attention by the Project Owners, the Nkangala District Municipality.

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Chapter

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Background and Overview of Current Status Project Background

An investigation into the potential feasibility of the Nkangala Goat Project has been requested by the Nkangala District Municipality following the successful completion of a Goats Skills Training Programme in the area. This training identified approximately 91 learners interested in goat farming in the Emalahleni, J.S. Moroka, and Thembisile Local Municipalities in the larger Nkangala District Municipality. The Skills Programme was funded by the Mining Qualifications Authority through the National Skills Fund of the Department of Labour and the training project was managed for the Nkangala DM by TEBA Development. The training was provided by the PAETA (Primary Agriculture Education and Training Authority – now AgriSETA)-accredited training service provider, Scientific Roets (PTY) Ltd, which is the leading authority on goat production projects of benefit to rural development in South Africa. Following the success of the Skills Programme, and due to the obvious interest in goat farming shown by the learners, Scientific Roets (PTY) Ltd was again approached to demonstrate the feasibility of developing a goat farming initiative in the area of benefit to, specifically, those learners from the Thembisile Local Municipality, and possibly at a later stage, the J.S. Moroka and Emalahleni Local Municipalities. This feasibility study and business plan investigates and suggests production scenarios regarding such a venture, infrastructure requirements, institutional arrangements, value-adding and market potential and cash flows.

Extent of co-operation and integration with other Government Departments and initiatives

The Nkangala Goat Project is supported by:

x The Nkangala District Municipality

x The Thembisile Local Municipality

x The J.S. Moroka Local Municipality

x MQA (provided funding for Goat Skills Programme to 100 learners)

x TEBA Development (provided Project Management services during the Skills Programme)

x Kalahari Kid Corporation (as a potential market for the goats and products from this project

– and also have a vested interest in one of the Goat Farmer Groups included in the Goat

Skills Programme)

x The Kwamhlanga Abattoir (operated by Tortello Investments (PTY) Ltd owned by Mr Pieter

Nortje and Mr Phillip Makwasha) is interested in slaughtering animals, and adding value to

the goat meat produced

x Department of Agriculture: Mpumalanga (have provided several pieces of land for goat

farming)

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Current Funding Funding for the development is being sourced from, or already provided by:

x The Nkangala District Municipality (for infrastructure, institutional development and social

facilitation)

x The MQA (for the Skills Programme already completed)

x Agri-SETA (to upgrade the training of the Goat Farmers to a full NQF 1 learnership: Animal

production)

x Department of Agriculture: National (Has provided the main section of land –

Hartebeesspruit – where the main part of the project will be located)

Job creation The Nkangala Goat Facility will create permanent employment for ±17 people (5 Goat handlers/breeders, 1 manager, 1 sales person, 2 trainers/extension staff, and 8 meat processors), and 58 small-scale contract goat growers in the area surrounding the project.

The individuals to be employed in the operation will be trained in breeding goat management, meat processing, business and finance. Thus, job creation will occur for positions such as breeders, meat processors, general and marketing managers.

Expected outcomes of the project o Several (± 75) permanent positions,

o A ready market for live goats, goat meat, offal and goat skins from goat farmers in the project

area (income streams of small-farmers improved and secured)

o Products for the local and national markets (male kids, meat, breeding animals, offal, skins)

o Further markets for local building materials (bricks, sand and timber) (infrastructure)

o Organised group (co-operative) development and human capacity building in these spheres

(increased capacity in business management, co-operative development and maintenance)

o Improved production, processing and marketing infrastructure for goats (little formal goat

business infrastructure exists)

o Capacity in goat management and value-adding processes

o Business capacity development (capacity to run private company or co-operative)

o Group empowerment

o Self-employment

Project Management Scientific Roets (PTY) Ltd is experienced in Goat Production, Rural Development, Social Facilitation and the development of the specialised infrastructure required for such a project. Scientific Roets (PTY) Ltd is also experienced in fund-raising for such projects. They are thus the most suitable service provider to drive the training, design, institution building and project management aspects of the project.

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Chapter

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Demographics of study area

2.1 Demarcation of Thembisile Municipality Figure 2.1 shows the geographic demarcation of Thembisile Municipality Wards 3, 11, 14 19, 20, 24, 28, 29 and 30 which are included in the Nkangala Goats project. It can be seen from the map that most of the population is clustered around Wards 2, 4, 6, 9, 13, 15, 18, 23, 24, and 30. Most of the project beneficiaries have been drawn from these Wards.

Figure 2.1 Map show ing Wards 2,3,4,7,8,9,11,12,13,15,17,19,22,23,25,and 30 of Them bisi le Munic ipal i t y

Population and education levels of Thembisile Municipality The following figures, (Figure 2.2 thorough to Figure 2.19), show the population sizes for Wards 3, 11, 14 19, 20 24, 28, 29 and 30 of the study area. Statistics regarding the level of education is also provided in the figures. It can be seen that this area is mainly dominated by black people. The level of education in some areas is good, reaching up to grade 12, whilst other areas have very low levels of education. However, the low level of education is not detrimental to the business proposed here. However, the

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target beneficiaries (goat skills program learners) have a good level of education and they have also passed the Goat Skills Programme offered by Scientific Roets (PTY) LTD.

Ward 3 (Kw aMhlanga)

Figure 2.2 Populat ion group w it hin Ward 3 of st udy area

Figure 2.3 Educ at ion level of t he populat ion w it hin w ard 3 of t he st udy area

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Ward 11 (Kw aggafontein)

Figure 2.4 Populat ion group w it hin w ard 11 of t he st udy area

Figure 2.5 Educ at ion level of t he populat ion w it hin Ward 11 of t he st udy area

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Figure 2.6 Populat ion group w it hin Ward 14 of t he st udy area

Figure 2.7 Educ at ion levels of t he populat ion w it hin Ward 14 of t he st udy area

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16




17




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Figure 2.15 Educ at ion levels of t he populat ion w it hin Ward 24 of t he st udy area st udy area

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Ward 29 (Kw aggafontoen)



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Employment levels and household income in the study area Figures 2.20 to 2.35 indicate the levels of employment and the household income within the area of Thembisile Municipality based on the census done in 2001. It is noticed that the level of employment is very low compared to the population sizes found in all the Wards of the area. This can be associated with the level of education which is low in many Wards, thus people do not have the skills to be able to get jobs or start their own businesses. As a result of the low level of employment, on average, the annual household income in these Words is R19 000. This shows that it is important to assist in the creation of businesses for the people living in these Wards.

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Figure 2.20 Levels of em ploym ent in Ward 3 of t he st udy area

Figure 2.21 Annual Household inc om e m easured in 2001 in Ward 3 of t he study area

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Figure 2.23 Annual Household inc om e m easured in 2001 in Ward 11 of t he st udy area

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24




25




26




27




28




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Economic activities in Thembisile Municipality The economic activities in the form of occupation and the industries that the people are involved in are indicated in Figures 2.36 to 2.53. The majority of industries and occupations referred to in the study area relate to household activities. This is an indication that there are not many industries within the study area. A first market that could be addressed by the project is the stimulation of economic activity through the sales of meat and offal in the community. Also, there are quite high levels of people involved in the construction industry. These people can be drawn on for the infrastructure requirements of the project.

Ward 3

Figure 2.36 The dist r ibut ion of t he populat ion ac c ording t o oc c upat ion (Ward 3)

Figure 2.37 The dist r ibut ion of t he populat ion ac cording t o t he dif ferent indust r ies found in t he area (Ward 3)

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Ward 11



31

Ward 14



32

Ward 19



33

Ward 20



34

Ward 24



35

Ward 28



36

Ward 29



37

Ward 30



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2.2 Demarcation of Dr J S Moroka Municipality Figure 2.54 Map show ing Wards 1,2,6,10,11,12,13,14,15,17,20,21,22,24,26,28 and 29 of Dr J S Morok a Munic ipal i t y

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Population and education levels of Dr J S Moroka Municipality The population and education levels of the inhabitants of the Dr J.S, Moroka Municipality are shown in /figures 2.55 to 2.56. The majority of the population is Black. Similar to Thembisile Municipality, the levels of education are low.

Ward 7

Figure 2.55 Populat ion group w it hin Ward 7 of st udy area

Figure 2.56 Educ at ion level of t he populat ion w it hin w ard 7 of t he st udy area

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Employment levels and household income in the study area Levels of employment and household income are extremely low in this area. It is imperative that the project include some activities in this area.

Ward 7


Figure 2.58 Annual Household inc om e m easured in 2001 in Ward 7 of t he study area

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Economic activities in the study area The economic activities in the area are very limited. However, the construction sector could be called upon to assist with the infrastructure requirements of the project.

Ward 7



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Chapter

3

Product and Market Analysis Market Overview: Live Goats for Slaughter

Virtually all goats, excluding Angoras, produced in South Africa are marketed live. Only a very small percentage of goats are slaughtered at official abattoirs. The main buyers of goats are Blacks and Indians. It is estimated that 80 percent of goats traded in KwaZulu-Natal are consumed by blacks and the rest by Indians and other consumers. However, because Indians are involved in the goat trade, Indians are often perceived as the main consumers of goats. The live goat market is characterised by peak demand periods during Easter, December, and the winter months. The seasonal increases in demand are believed to be related to the consumption of goats during festivals and ceremonies by Blacks and Indians. Based on past sales figures reported by traders of live goats, the percentage of goats sold according to months are as follows:

December 17%

April 14%

Rest of year 69%

Sales for the rest of the year represent 7 percent per month. Sales increase to 17 percent in December and 14 percent for April. Seasonal demand has weakened during the past number of years according to goat merchants, with the reductions attributed to deteriorating economic circumstances.

The majority of goats are marketed in KwaZulu-Natal. Accurate figures to indicate the size of the market could not be obtained, but it is estimated that approximately 10 000 to 12 000 live goats are sold, on average, per month in KwaZulu-Natal. Goat speculators are the main traders in live goats. Auctions in the producing areas have become less important.

Market overview: Goat meat Int roduct ion

In South Africa’s rural areas, the primary purpose of goats is meat production for local consumption, emergency cash flow and traditional use. However, limited market outlets for chevon in South Africa have inhibited its commercialisation. It is clear that consumers have certain general reasons for not buying a meat product, and certain general reasons why they would be stimulated to buy a meat product. Furthermore, certain negative and positive perceptions regarding chevon in particular also exist. These “attractors” and “repellors” as well as the perceptions of consumers should be incorporated into the design of goat meat products for the retail market.

Chevon qualit y and carcass characterist ics

The nutritional value and other qualities of chevon, vary for the different goat types. However, across all breeds the compositional and structural characteristics of chevon are in rather close accord with the newly emerging consumers' preference for leaner, lower calorie meat. Thus, the continuing lack of demand for fresh chevon or processed products could be: perceptions surrounding its traditional use,

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lack of availability, negative perceptions (exacerbated due to lack of availability), institutional arrangements that neglected its promotion and, limited research support.

Chevon is relatively low in calories and has extremely low fat and saturated fat content. The meat also compares favourably with respect to protein and iron content. Goats possess little marbling and not much subcutaneous fat. Most of the fat is found around the internal organs (kidney, viscera and reproductive tract). Goat muscle is on average lower in fat than beef or lamb. Chevon is 50 - 60% lower in fat than similarly prepared beef, but has similar protein content. The protein content of chevon is approximately 20%. Goat muscle has "high quality" protein and goat fat has approximately the same saturation as beef, but is lower in cholesterol than pork and beef fat (Casey, 1982; Casey & Naudé, 1992; Schönfeldt, 1989; Schöfeldt et al. 1993; Strydom & Tshabalala, unpublished; Tshabalala, 2000). USDA has also reported that saturated fat in cooled chevon is 40% less than that of chicken, even with the skin removed. Generally, the composition of chevon and mutton are comparable with respect to moisture and ash content.

Tough meat is the result of poor feeding and care. Thus, older animals do not necessarily have tougher meat (Schönfeldt, 1989; Schönfeldt et al. 1993). Bucks should be castrated to avoid the bucky taste in the meat or should at least be eaten before one year of age. Thus, young chevon is the most preferable chevon for consumption. In terms of quality, the best meat is produced from young goats with a live weight of 11 to 12 kg (although at this weight the dressed carcass yields small quantities of meat). At this weight and age the meat is tender with no bucky taste (Tshabalala, 2000).

It is very important that the animals are not stressed before slaughter, because this adds to meat toughness (Schönfeldt, 1989; Schönfeldt et al. 1993). Hot-processing of chevon could be considered as an alternative to the conventional method, if the goats are not to be slaughtered in a commercial abattoir. Hot-processing can be defined as the processing of meat prior to chilling. The economical advantages are: reduction of energy input, cooling space, chilling time and labour. Hot-processing also offers a number of functional advantages: improved water-holding and emulsifying capacity, a decreased cooling loss and improved meat yield.

The carcass of the goat is similar in appearance to a sheep (Tshabalala, 2000). The Australian method of dressing a goat carcass is shown in Figure 3.1. The carcass of a mature goat is divided in the same manner as lamb; into wholesale and/or retail cuts as shown in Figure 3.2 (No diagram showing the cuts of a goat carcass could be obtained).

Figure 3.1 Dressing of goat c arc ass

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Figure 3.2 Cut s of a goat c arc ass (done as show n for lam b)

A kid carcass can weigh approximately 8 to 17kg. This can possibly be sold whole, halved or quartered. Dressing% = * Hot carcass weight x 100 # Pre-slaughter weight * Hot carcass weight = carcass after slaughter from which the skin, head, liver and portions of the legs and viscera have been removed

# Empty body-weight figure

Goat carcass = 50% of live weight = dressing %

34% of live weight can be considered retail boneless chevon. The fore saddle, shoulder, rack, fore shank and breast make up approximately 24.5% of live weight, while the hind saddle, loin, leg and flank comprise the difference of 23.5%.

Leg: = 33% of carcass

- Whole - sirloin included, or 4 - 6 sirloin chops

- The rump, centre roast and shank

Loin: - Most valuable and most tender cut

- 4% of live weight = retail loin cuts

- double/single loin chops

Rack: - rib chops/whole

Shoulder: - less tender and palatable

- Stew/kebabs

Flank, fore shank, breast and neck: - Debone for mince meat.

Fresh cuts: Goat rib or loin roasts are preferred to chops because of the relatively small size of the rib and loin ’eyes’. Rear goat leg could be divided into sirloin and shank halves.

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Cost analysis: An example of possible income from chevon.

A goat of five to seven months will weigh +/- 35 kg. Thus the carcass weight would be 17.5 kg. Of this the retail boneless meat would be 11.9 kg. Table 3.1 demonstrates how value can be added if the carcass is sold as fresh meat. From an economical point of view it is better to sell chops than for example the whole rack, but since the cuts are very small, it will not necessarily be a practical consideration. The costs of production were not taken into account in these calculations.

Table 3.1 Possible inc om e if t he c arc ass is sold as fresh m eat Fresh cuts Retail meat (kg) R/kg * Income (R)

Leg: Whole or 5.0 25.96 129.80

Sirloin chops 2.0 22.9 45.80

Rump steaks 3.0 27.9 83.70

Loin chops 0.8 34.2 27.36

Rack: Whole or 1.0 22.13 22.13

Chops 1.0 34.94 34.94

Shoulder: Kebabs 2.1 33.90 46.48

Rest of fore saddle:

Mince meat - fresh sausage

3.0

17.97

53.91

TOTAL 11.9 279.68**

* No costs were taken into account

** Rows in bold type face were used in the calculation

Several scientific studies preceded this investigation. The ground-breaking work of authors such as Casey (1982), Casey and Naudé (1992), Schönfeldt (1989), Schönfeldt, Naudé, Bok, Van Heerden and Smit (1993) paved the way for further work on this subject. Further work was conducted by Tshabalala (2000), Strydom and Tshabalala (unpublished), and Loretan (unpublished). The findings from these studies can be summarised as follows:

Goats had proportionally larger feet, spleen and liver compared to sheep and therefore, dressed-off lower than sheep. Sheep breeds contained significantly more subcutaneous fat than goat breeds. The fore limb, ventral trunk and dorsal trunk of goat breeds were proportionally heavier than those of sheep breeds while sheep breeds had proportionally heavier hind legs. The proportional lean content per cut of Boer goats was comparable to that of sheep breeds. The percentage carcass bone content was highest in Indigenous goat carcasses.

The aroma intensity of Boer goat patties was significantly more (P<0.05) intense compared to that of Indigenous goat patties and Dorper and Damara sheep patties. The flavour intensity of sheep patties was stronger than that of goat patties. Boer goat patties were significantly more flavoursome (P<0.05) than Indigenous goat patties. Sheep meat patties were more tender, juicy and greasy than chevon patties as a result of differences in fat content. Indigenous chevon patties were more chewy and less tender and juicy than those of Boer goats.

Both goat and sheep meat contained higher molar percentages of saturated than polyunsaturated fatty acid. Oleic acid was the most abundant fatty acid and its concentrations were highest in Damara sheep meat.

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The fatness of carcasses was influenced by species, breed and diet, which in turn affected the carcass composition and eating qualities. Sheep carcasses contain more subcutaneous fat and less bone than goat carcasses. Sheep meat is more juicy and more flavoursome than chevon. The high levels of fat in sheep meat mask the non-meat flavours that are often found in lean meat.

An experiment was further designed to explore various factors that can affect the meat quality such as nutrition and feeding of a growth hormone like BST to the goat. In general it was found that while nutrition had a significant effect, growth hormone treatment in contrast had no significant effect on any of the important carcass characteristics.

Development of meat products for the retail market

Some negative perceptions of goat meat that were identified by potential consumers include toughness and smell. Positive perceptions included “correct farming practices applied” and nutritious. Thus, in the value-added product development these factors must be taken into account. Goat meat is indeed nutritious and low in fat and cholesterol. These factors should be emphasised. Goats should be produced humanely and slaughtered appropriately. Furthermore, only young animals or castrates should be utilised to avoid the bucky taste. To overcome the problem of toughness products such as biltong, salami, dried sausage and cabanossi could be developed that would be ideal for the delicatessen market or the tourist industry. In fact, negative perceptions were overcome when a chevon product (dried sausage) was tasted. Propensity to purchase the product increased by more than 10% for both the consumer and retail respondents after a sample of chevon dried sausage was tasted. Products such as hamburger patties and sausage could further add convenience for the housewife to the product range, and fresh meat cuts may gain market ground later when the product is better established (most likely the whole leg for roasts or rolled ribs). However, it is clear that the introduction of chevon as a standard home consumption product will need to be accompanied by an active advertising and education programme.

It is important to add maximum value to chevon, since the meat yield of goats is different in comparison to sheep. This is because of the anatomical differences between goats and sheep. Sheep have more developed rumps and Longisimus dorsi muscles (which constitute the chops). The South African consumer is used to the large chops obtained from sheep, and may make a direct comparison between the size of the cuts instead of concentrating more on the taste and the positive nutritional attributes of chevon. It is thus better to process the meat, rather than selling it as fresh cuts. Table 3.2 demonstrates the potential for value-adding when chevon is processed. Again, the costs of production were not taken into account. However, personal communication with a butcher and two meat specialists have provided estimated production costs to the value of 24 to 35% of the direct ingredient costs for both carcass cuts and processed products even though the labour for processed products would be higher. This is because most operations do both fresh cuts and processed products and the cost of labour and other overheads is averaged across both product types. Thus, in comparing Tables 3.1 and 3.2 an increase of 17 to 30% could be added to cover the production costs.

Table 3.2 Possible inc om e if t he m eat is furt her proc essed t o add value Processed product Retail meat

(kg) ***Extend/loss = kg

R/kg *Income (R)

Leg + Loin: Biltong 5.80 - 50% = 2.90 68.90 199.81

Rack: Marinated 1.00 1.00 45.99 45.99

Rest of carcass:

Mince meat

5.10

Hamburger patties 5.10 + 20% = 6.12 19.90 121.79

Fresh sausage 5.10 + 10% = 5.61 15.90 89.20

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Dried sausage 5.10 + 15% - 50% = 2.93

48.90# 143.28

Cabanossi 5.10 + 20% - 40% = 3.67

59.40# 218.00

TOTAL 11.9 7.57 463.80**

* No costs were taken into account

** Rows in bold type face were used in the calculation

*** Increase in weight through addition of ingredients, and weight loss due to drying

# July 2005 prices for dried sausage ranged from R80.00 to R89.99 per kg and Cabanossi ranged from R73.99 to R74.99 per kg.

The prices given in Table 3.1 and 3.2 are average prices for similar lamb and beef products obtained from a survey of four meat selling establishments in the Pretoria region. These prices were taken as estimates, because fresh chevon is not readily found in retail. Because fresh chevon will be difficult to market initially in the same class as lamb, because of the lack of consumer knowledge on the product, it will be a better proposition, from an economical and sensory point of view, to process the meat. Although the income of the processed products (Table 3.2) could be higher than that of the fresh cuts (Table 3.1), one must keep in mind that the processing costs could be slightly higher for the processed products, if only processed products were manufactured in the plant (but as explained above, where both types of products are produced the production costs are generally averaged over both types).

Also, deboning and processing meat (for example the drying process in biltong making) reduces the weight of the final product (although this is taken into consideration in Table 3.2). However, it is possible to further extend the processed products by including other meat and non-meat ingredients. It is advisable to bone the entire carcass of, especially, older goats for hamburger patties to which can be added goat kidney fat/fatty pork/beef tallow. Sausage from chevon, with or without meat from other species, is particularly a good choice, both nutritionally and economically. Manufacturing of sausages and other products provide convenience, variety, economy and nutritional value. However, if products are destined for the Muslim markets (as suggested by the Middle East market that exists for goat meat products) then no pork should be added to the products and no swine must be slaughtered in the same abattoir i.e. the abattoir and the product must conform to Halaal specifications – again demonstrating a market-oriented approach to product development.

Building consum er requirements into products

After finding that chevon is tougher and leaner, it was decided that reconstituted meat products would be far more appropriate for chevon than fresh cuts. The consumer also perceives that chevon is tougher, and thus this characteristic should be de-emphasized in developed products, and positive characteristics such as leanness should be emphasized. Therefore, keeping these factors in mind, it was decided to develop products such as salami (in combination with other meat types), cabanossi and dried sausage. All these products rely on deboned meat, which reduces the effect of toughness, and fat from other animals can be added to the recipe to make up for the lower “juiciness” of the chevon. However, the benefit to the consumer would be a tasty product with less fat than the normal cabanossi, salami and dried sausage products. Recipes for these products were developed and are available.

Further product , market and linkage opportunit ies

The Nkangala Goat Project could provide its own young male kids for sale for slaughter, and furthermore provide a service to goat growers in the area to collect and resell young male goats from Goat co-operatives associated with the project, to the Kwamhlanga Abattoir for further processing. Thus, there are various product ranges that will flow from the facility and each of them have a potential income source.

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It should be noted that there are several marketing avenues. Some products can be sold on-site to the local market (this will essentially be the main market avenue). The Nkangala Goat Project should also position itself to link with other goat projects in South Africa, and the reciprocal marketing of their products. For example: commercial operations, such as Fairview have expressed interest in developing a tourism shop selling other goat products. The vision is to create a string of “Goat” stores across the country, which provide consumers access to goat milk, goat meat, goat hair, goat leather, and goat “objets de art”, thus starting a wave of appreciation and interest in goat products.

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Chapter

4

Product Mix and Plant Capacity Nkangala Central Breeding Farm Production Scenarios

If the Nkangala Goat Project operated and owned a breeding farm and planned to own 600 does and 15 rams (a total of 615 animals), on land with a grazing capacity of 2 hectares per small stock unit, a farm of 1230 hectares would be required. The property of Hartebeestspruit, recently presented to the Thembisile Local Municipality for the goat farming project comprises an area of approximately 1800 ha. If Nkangala DM could purchase the first 120 breeding animals, then a production loan of R 396 000 could be obtained from the Land Bank to purchase the remaining animals required.

If it is assumed that 45% does produced singles, 38% produced twins, and 17% produced triplets, and there was a mortality of 4%, then 1032 kids could be produced in the first year. If 50% of those kids were male, they could be slaughtered from 4 months of age, thus 64 male kids could be available for slaughter per month for 8 months of the year. If 50% of these kids were female, they could be sold to the Contract Grower co-operatives as breeding stock as from 8 months of age. Thus, 100 does would be available for sale every month for 4 months of the first year. 110 does will be retained to build up the breeding herd into the next year, taking the breeding herd to 725 animals. If the same production assumptions are made then 616 male animals will be available for slaughter from 4 months of age, and approximately 500 doelings will be available for sale to goat farmers in the area in the last 4 months of the second year.

The Central breeding farm also serves as a collection and transport service to the contract growers from whom 60 goats per month are purchased for resale to the abattoir.

The cash flow analysis for this Breeding farm is shown in Appendix A.

Contract Goat Growing Co-operatives Potentially 3 Contract Goat Growing Co-operatives can be established (This can be either 3 in Thembisile, or two in Thembisile and one in J.S. Moroka). If each of these contract farms planned to own 300 does and 8 rams, thus a total number of 308 animals, on land with a grazing capacity of 2 hectares per small stock unit, a farm of 600 hectares would be required for each Co-operative. The availability of this land needs to be determined within each local municipality. A production loan of R 154 000 needs to be acquired by each of the three Co-operatives to purchase their livestock. If it is assumed that 45% does produced singles, 38% produced twins, and 17% produced triplets, and there was a mortality of 4%, then 495 kids could be produced annually. If 50% of these kids were male, they could be sold to the Central breeding Co-operative from 4 months of age, thus 20 male kids could be available for slaughter per month. If 50% of these kids were female, half of them can be retained in the flock as replacement animals, the rest could either be sold as meat, or, preferably, to the community as production animals or for traditional use. No salaries are paid by the Contract Co-operatives. The group manages the operation together, and profit sharing is done monthly amongst the group, when possible. An indication of this profit sharing is given in the cash flow analysis in Appendix B. Furthermore, these Co-operative members are also members of the Nkangala Breeding Farm (paying dividends in June) and the Kwamhlanga Goat Meat Processing Plant (paying dividends in December), and as such receive profit sharing dividends annually

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from both these sources. In total the 60 members of the Contract Co-operative can each earn an income of R 2800 in the first year, R 7300 in the second year, and R 8200 in 2008 from all three sources. The cash flow analysis for the Contract Co-operatives is shown as Appendix B.

Goat Meat Processing Scenarios at Kwamhlanga Abattoir It is envisaged that a meat processing facility will be added to the existing Kwamhlanga Abattoir (See Infrastructure and Equipment: Chapter 7). Value will be added to goats purchased from the breeding farm (who in turn provide a collection and transport service to the Contract Co-operatives whilst buying thir goats) as well as 200 goats per month from farmers in the area (including the goat auction held every Tuesday at the Bronkhorstspruit Auction facility).

A goat of four to 12 months can weigh +/- 30 kg. A retail boneless meat weight of approximately 11 kg is estimated per aniimal. Offal will be sold for R 22 per kit from the kiosk on-site to the communities of Moloto and Kwamhlanga, and skins collected and sold for R 7 per skin to skin buyers in the area. The value-added product scenarios shown in Tables 4.1 and 4.2 could be achieved in 2006 and 2007. Complete cash flow analyses are shown in Appendix C.

Table 4.1 Value-adding t o 34 598 k g of ret ai l boneless m eat Processed products

Retail goat

meat /kg (%)

Beef fat /kg (%)

Extend/Loss (kg)

Kg produced

R/kg *Income (not profit)

Cabanossi (fresh, smoked)

13,839.4 2,075.9 -0.1 14,960.3 R 73.99 R 1,106,916.16

Salami 13,839.4 1,660.7 0.2 3,255.0 R 74.99 R 244,093.76

Dried sausage

6,919.7 0.0 -0.4 4,151.8 R 89.99 R 373,621.20

TOTAL 34,598.4 3,736.6 22,367.2 R 238.97 R 1,724,631.12

Table 4.2 Value-adding t o 35 659 k g of ret ai l boneless m eat Processed products

Retail goat

meat /kg (%)

Beef fat /kg (%)

Extend/Loss (kg)

Kg produced

R/kg *Income (not profit)

Cabanossi (fresh, smoked)

14,263.7 2,139.6 -0.1 15,419.0 R 73.99 R 1,140,854.63

Salami 14,263.7 1,711.6 0.2 3,354.8 R 74.99 R 251,577.77

Dried sausage

7,131.8 0.0 -0.4 4,279.1 R 89.99 R 385,076.57

TOTAL 35,659.2 3,851.2 23,053.0 R 238.97 R 1,777,508.96

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Chapter

5

Materials and Inputs The production scenarios of the previous chapter were determined for 5 separate business entities envisaged for the project: The Nkangala Goat Breeding and Production Farm, 3 Contract Goat Growing Farms and the Kwamhlanga Goat Meat Processing facility. For the production scenarios envisaged the following materials and inputs are required:

Goats Each of the three Contract Growing Farms will require 308 goats (300 does and 8 rams each). A Land Bank production loan of R 154 000 should be obtained by each Goat Co-operative to purchase these animals. The Central Goat Breeding and Production Facility will require 615 goats. 120 of these can be purchased utilising a grant from the Nkangala DM (R 96 000) and a further Land Bank production loan of R 396 000 should be obtained by the Nkangala Goat Project (PTY) Ltd to purchase the remaining animals required.

Meat Each Contract Growing farm will be in a position to sell 20 male goats to the Central breeding and Production facility per month, as well as a further 100 does per month for 4 months of the year.

The Central Breeding and Production facility will purchase the above-mentioned male animals from each of 3 Contract Growing Co-operatives, and augment this number with 64 male goats per month for 8 months of the year. This facility will furthermore assist the Kwamhlanga Goat Meat Processing Facility (in whom they hold shares) to procure a further 200 goats per month from the surrounding community and the nearby Bronkhorstspruit Goat Auction (held every Tuesday).

The Kwamhlanga abattoir will obtain a total of 3632 goats in 2006 and 3736 goats in 2007 for processing. This will result in an estimated 35 ons of Goat meat processed per year.

Auxiliary materials Meat Goat Medicat ion and feed at the Breeding and Product ion Fac ilit ies

During flushing (for three weeks before the breeding season), during the dry season (4 months) and just before and after kidding, a small amount (250 g per day per animal) of concentrate will be supplemented. This will ensure that animals maintain condition and produce to the required levels.

Medication is estimated at R 6.50 per animal per year.

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Spices and Packaging required at the Meat Processing Plant

To make the predetermined amounts of processed meat products certain spices, batch packs and packaging are needed.

The following quantities of meat are used per batch pack of spices:

a. Cabanossi - 28 kg meat on a 1 kg Cabanossi batch pack

b. Droë Wors – 28 kg meat on 1 kg Pioneer boerewors batch pack

c. Salami - 32 kg of meat on 1 kg Russian cooked salami batch pack

Prices for batch packs are approximately R 25.00 per kg. The cost of the supplies needed per month to produce the required amount of processed meat products have been estimated as shown in the cash flow statements in Appendix C.

Prices regarding packaging materials are as follows:

a. For Droë wors perforated bags 127 x 305 mm @ R 146.50/1000 (holds 500g)

b. For Salami (salami casings @ R 5/1 kg salami)

c. For Cabanossi: bags (holds 500 g) @ R 30/100

Cost of packaging supplies per month have been estimated as shown in the cash flow statements in Appendix C.

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Chapter

6 Locat ion and Site

6.1 Location The project area is situated in the Mpumalanga Province and falls under the administrative area of the Nkangala District Municipality. The village of Moloto is close to the Hartebeestspruit 235JR farm and is approximately located at 25°25’00” Latitude and 26°38’00” Longitude.

The Kwamhlanga Abattoir is situated in the Kwamhlanga village and is visible from the Moloto road. The abattoir is approximately located at 25°25’20” Latitude and 26°41’30” Longitude.

The administrative area is located approximately 100km Southwest of Pretoria. The area is geographically presented on the 1: 50 000 scale topographical map sheet in Figure 6.1

Figure 6.1 Local it y Map: K w am hlanga Abat t oir and Hart ebeest spruit Farm

6.2 Climate Precipitation generally occurs evenly spread throughout the summer (October to March). The mean annual precipitation is between 800 and 1000mm per annum.

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6.3 Site and terrain The region consists of largely lava and reddish sedimentary rocks of the Waterberg Group. Three sub-groups have been distinguished:

x A lower Nylstroom – consisting mainly of sandstone and grey wacke

x Middle Matlabas of grid and siltstone, and

x Upper Kransberg mainly of sandstone.

Most of the rocks are brightly coloured reds, purples and browns.

6.4 Material vs. Market orientation The Hartebeestspruit Farm is situated close (2km) to the main Moloto road (R573) to Pretoria. The farm is also ± 12 km from the Kwamhlanga Abattoir. The proposal is to add a goat meat processing area to the existing abattoir. The three handling facilities that will be supplied to farms (Co-operative groups) in an 30km radius will also assist in supplying a constant amount of goats to the processing plant.

6.5 Human Resources Chapter 2: Demographics of the study area shows that unemployment in the project area is high. Thus, the temporary employment and permanent employment that the project will create will assist to alleviate this problem (See Chapter 9: Human Resources).

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Chapter

7 Engineering and Infrastructure

7.1 Consulting Services

7.1.1 Civil and Archit ec tural Design on Har tebeest spruit 235 JR

Scientific Roets (PTY) Ltd. (SR) was appointed to do the Feasibility study and Business Plan and make recommendations on the Nkangala Goat project for the Nkangala District Municipality (NDM).

Various sites were visited by Dr. M. Roets, Mr. H.A. Roets and Mr. Z. Madikizela. The Engineering Division managed by Mr. A. Roets (Pr.Eng.) and two civil engineering technicians, Mr. T. Ntinga and T. Mxoli will design the facilities once the study has been approved and funds are made available. The design will be done on facilities related to goat management (housing and feeding) as well as a goat meat processing facility at the Kwamhlanga Abattoir. These designs will be verified by Dr. M. Roets for practicality to the site and requirements of the animals as well as Department of Agriculture and Veterinary Health.

The preliminary and detail designs will be done on the following items for the Hartebeestspruit Farm:

x Road to the housing facilities and roads to the various grazing camps.

x Earthworks for the terraces of the housing facility

x Water and effluent for the housing facility

x Internal roads and layout of the facility

x Electrical requirements for the facilities, perimeter fencing and boreholes

x Booster pump-station, pipelines, water and feeding troughs and fencing of the grazing camps

x Three 30mx15m housing and feed-store facilities for 600 goats

x Housing for breeding rams

x 30 kidding pen-units

x Training facility with loading ramp, crush and scale and offices

x Handling facilities and water troughs

x Three housing units for management.

7.1.2 Obser vat ions during the sit e visit of the Har tebeestspruit farm

Dr. M. Roets and Mr. H.A. Roets were accompanied to the Hartebeestspruit 235 JR farm by three representatives of the District and Local Municipality namely Mr. Cedric Nkuna, Mr. Makhaya and Mr. B. Skosana. The visit took place on the 19th of July 2005 after visiting the Thembisile Local Municipality.

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The assumption is made that the farm Hartebeestspruit 235 JR in total (as indicated on the site visit by the representatives) is available for development. The area and title deeds of the farm has been verified by Mr B. Skosana (during the site visit the representatives indicated that only ± 60 Ha is available on the farm). However, the boundaries were measured with a Global Positioning System (GPS) and plotted and the farm is 18,21 km2 which is 1821 Ha (excluding a section already used as a settlement). A picture was also taken of a farm gate with a board indicating “Plot 378”. This area was fenced and cattle were visible close to the two dams.

A graveyard is situated on the Eastern side of the farm and contractors are currently using a large area to excavate for building and plaster sand. This borrowing of material is illegal and should be stopped by putting up a gate to the entrance to the farm.

7.1.3 Obser vat ions during the sit e visit of the Kw amhlanga Abat toir

The Kwamhlanga Abattoir was visited on the 20th of July 2005. The abattoir is newly constructed and not operational. The manager of the abattoir (Mr Pieter Nortje of Tortello Investments (PTY) Ltd.) indicated that the water supply is not constant and that he will propose to drill a borehole close to the premises to supply water to the abattoir. Mr. Roets also recommended a 100m3 standby reservoir for the abattoir.

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The current transformer is also too small to accommodate the additional cooling unit. All stakeholders need to assist the managers of the abattoir to get a certificate to operate the abattoir from Department of Veterinary Public Health and iron out all reasons for stoppages.

Adaptation will be required on the abattoir to accommodate goats especially in the lairages and the meat rail into the proposed processing plant.

The preliminary and detail designs will be done on the following items for the Kwamhlanga abattoir processing plant:

x Facility layout and roof structure (Approved by the Department of Agriculture)

x Processing equipment and installation requirements

x Water and sewer connections

x Electrical design and layout, connecting into existing system

x Cooling units and requirements (if required)

x Adaptation to abattoir for carcasses to move into processing plant

x Adaptation of lairages to accommodate goats

The layout of the processing plant will be submitted to the Department of Agriculture, Veterinary Public Health for approval. The registration of the abattoir is currently managed by others.

7.1.4 Geohydrological Survey

A geotechnical survey will be required on the farm to establish possible positions for boreholes. We recommend at least two positions to be drilled and tested and equipped for the development of the farm.

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The water from the boreholes will be supplementary to the dams and will also assist with the design of the irrigation for the vegetable project.

We recommend having permeability tests (tempo of water percolating through the soil) conducted on the site for effluent disposal. The effluent from the houses and labour ablutions will be treated in septic tanks and the effluent will then flow via soakaways into the soil. The site is large enough to have these soakaways installed on the contour lines.

Trial pits will be excavated and we recommend that these soil samples should be sent for testing at a soil laboratory for compaction ability and various indicators required for the earthworks on the terraces. Soil samples should also be collected from the borrow pits as this material will be imported onto the terrace and used to construct the access road.

An Agronomist should also be appointed to indicate which areas of the farm will be most suitable for vegetable production. The area closest to the settlement (Moloto Road side) could be used for the vegetable project as jobs could be created and the natural veld (grazing area for goats) to the northern side of the farm (Gauteng border) should be used for the Goat project.

No geohydrolical survey or geotechnical survey will be required on the single storey Kwamhlanga abattoir processing plant.

7.1.5 Environmental Impac t Assessment

An Environmentalist needs to be appointed on the Hartebeestspruit farm after the preliminary design and drilling and testing of the boreholes is complete. The report will be submitted to the Department of Environmental Affairs and Tourism (DEAT). A Record of Decision (ROD) will then be issued on the project before construction can start. Please take note that certain DEAT departments indicated that costs incurred by DEAT for traveling to the site and other expenses related to the project may be invoiced to the company applying for the ROD from 2005.

No environmental scoping report will be required on the Kwamhlanga abattoir processing plant because this would have formed part of the Project Manager’s appointment.

7.1.6 Land survey

The area that will be used for the Hartebeestspruit facility will be surveyed to enable the Engineer to design the services to the facility (road, water, sewer and electricity) and the layout of the components of the facility. The corners of the grazing areas will also be surveyed as well as the closest Eskom point, dams, borrow-pits, strip survey of gravel roads and all other items that may need to be considered for the design.

The Kwamhlanga abattoir processing plant position and the abattoir as-built should also be surveyed if the as-built plans are not available for the design.

7.1.7 Ex ist ing Services, buildings and graveyard

During the site visit no existing services was identified on the farm but the site visit was however, very limited for a farm almost 2000Ha in size.

The buildings on the farm are mostly dilapidated but the buildings indicated as Mount Hope were not visited. There is however, a family staying in houses on the farm (The Ngotela family – 5 members – parents and 3 adult sons). This family could be incorporated into the project to offer security or other services (Security of Tenure issues may be of relevance here).

A graveyard is fenced and situated to the Eastern side of the farm. The graveyards have recently been used (14.06.2002) and are kept tidy. Access to these graveyards should be allowed the family members.

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7.1.8 Government Depar tments

The construction drawings of the facility will need to be approved by the Department of Agriculture, Veterinary Public Health. We recommend involving the Department of Agriculture from the preliminary design stage.

The Department of Environmental Affairs’ assistance will also be required in obtaining a Record of Decision.

Other Government Departments that need to be involved should be identified by the project steering committee.

7.2 Cost Estimates on the Kwamhlanga Abattoir Processing Plant, Hartebeestspruit farm and other farms

7.2.1 Kw amhlanga Abat toir processing plant

7.2.1.1 Processing Plant super structure

The Goat Processing Plant Extension will need to fit into the existing structures’ architecture. The building should also have a face brick finish with a corrugated iron roof structure and bull nose edges. The most appropriate location of the processing plant within the existing abattoir was indicated during the site visit.

The two pictures below indicate the views from the abattoir side (entrance to the processing plant) and from the road side (dispatch area).

The area required for the processing plant will be approximately 16.2 x 6.3 m including ablution facilities for male and female. See drawing N0046A3 006 and N0046A3 007 for preliminary layout of the processing plant. Please note that the ablution facilities will be negotiated with the Department of Agriculture, Veterinary Public Health but we foresee that they will indicate that the current ablution facilities will not be sufficient for an additional 6 people working in the abattoir.

7.2.1.2 Water and Sewer

The processing plant will be on the same level as the existing abattoir. The sewer line from the ablutions and the processing facility will connect to the existing system. It will be assumed that the designed treatment plant will be able to accommodate the quality and quantity of the processing plants’ effluent.

A 100Lt geyser will be required and connected to the existing water system. The existing water supply will be assumed to be of the correct quality and quantity.

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See picture below indicating the position of the effluent line connection and the screen at the treatment plant.

7.2.1.3 Electricity

Electricity in the facility will have to be IP 65 rated (water could be sprayed on points) and all the equipment will need to be installed by a certified electrician. Overhead lights will need to be 550Lux in the processing plant. The processing plant will have a distribution board close to the entrance to the processing plant and a main circuit breaker in the existing distribution board. Only the lights need to be connected to the standby generator. Items such as the band saw and the filler will require 3 phase electricity.

See picture below for the Standby Generator and the Existing Distribution Board

7.2.1.4 Cooling Facilities

The recommendation will be to air-condition the processing plant down to 10 degrees Celsius. This will require 3 phase compressors and will assist in adding shelf life to the meat products. The existing system was designed for the existing cooling units. The abattoir manager indicated that they are currently applying for a 75KVa transformer and that it will cost approximately R 80 000.00. The processing plant air-conditioning system also does not need to be connected to the standby generator.

See picture below indicating existing cooling units.

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7.2.1.5 Processing Equipment

The processing equipment list below is a list of items that was compiled and issued to an abattoir equipment supplier to compile a cost estimate. These items could change depending on the requirements of the product mix related to the market. The items that require plumbing and electrical connection have been included under the water and electrical installation.

See picture below for boot-wash and knee-operated hand wash basin

Please find attached the list of items envisaged for this processing plant.

Item No Price Total Apron Hooks (Galv.) (i) 6 Hook 1 R 280.00 R 280.00 (ii) 10 Hook 1 R 300.00 R 300.00 Floor drains to fit 110mm pipe 4 R 1,800.00 R 7,200.00 AFVALl slide (Galv-wall mounted) 1 R 2,500.00 R 2,500.00 Caton store racks 3no. Lengths 5m each R 15,000.00 R 15,000.00 Wheel barrow (Hides - Galv.) 1 R 500.00 R 500.00 Sheep Dressing shackles 14 R 52.00 R 728.00 Black Bins(OFFAL) 3 R 90.00 R 270.00

4 Sheep Carrier Logs 10 R 90.00 R 900.00 Frame to fit under load cell-Scale (Galv.) (not on wheels)

1 R 200.00 R 200.00

Freestanding shelves in coldrom (Galv) 6.0m in leghth and 1.8m high shelves

1 R 15,000.00 R 15,000.00

Meat boxes to hold 25kg product, hand assembly – no staples needed

100 R 9.80 R 980.00

Plastic liners for cardboard boxes 100 R 2.50 R 250.00 Cutting boards 6 R 280.00 R 1,680.00 Wash Guns Light duty 2 R 300.00 R 600.00 De-boning knives 10 R 80.00 R 800.00

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Sharpening steel 8 R 150.00 R 1,200.00 S/steel knife scabbards 8 R 90.00 R 720.00 Lockers – 2 Tier 8 R 650.00 R 5,200.00 Spice Rack (10 x shelf) 1 R 5,300.00 R 5,300.00 Stip curtains 2.4m high 1m wide 1 R 900.00 R 900.00 S/Steel tables (Flat top, 430 s/steel, tubular mild steel legs, epoxy coated, angle iron framework, epoxy coated 2300x760x915

2 R 2,500.00 R 5,000.00

S/Steel tables (Flat top, 430 s/steel, tubular mild steel legs, epoxy coated, angle iron framework, epoxy coated 1700x760x915

3 R 2,300.00 R 6,900.00

S/Steel tables (Flat top, 430 s/steel, tubular mild steel legs, epoxy coated, angle iron framework, epoxy coated 1100x760x915

2 R 2,100.00 R 4,200.00

S/Steel tables (Flat top, 430 s/steel, tubular mild steel legs, epoxy coated, angle iron framework, epoxy coated 2300x760x915, Complete with 2 sinks and outlet pipe.

1 R 5,500.00 R 5,500.00

Speed Queen 7.5kg load washing machine 1 R 10,000.00 R 10,000.00 Sign Boards Fire extinguisher 2 R 32.00 R 64.00 Protective clothing 3 R 32.00 R 96.00 Gum Boots 3 R 32.00 R 96.00 Hard hats 3 R 32.00 R 96.00 Electronic Fly catcher 1 R 3,600.00 R 3,600.00 Fly Bait Stations (Red Top) 8 R 60.00 R 480.00 Rat Bait Stations 3 R 90.00 R 270.00 Rat Bait (Granules 3kg) 1 R 600.00 R 600.00 Paper Roll with stands 2 R 450.00 R 900.00 Bandsaw, 380V-50Hz 1 R 20,000.00 R 20,000.00 Single chamber vacuum packing machine, 310x280x80mm deep

1 R 28,000.00 R 28,000.00

Oven, Model: BCJ0170, Voltage 230V-50Hz 1 R 18,000.00 Mincer V220 M:32EL 03/00117, table model 1 R 21,000.00 R 21,000.00 Loading Cell scale for carcasses installed on the meatrail 100kg

1 R 8,500.00 R 8,500.00

Filler M-H26, V-400V-50 Hz, 15lt sausage filler 1 R 28,000.00 R 28,000.00 Ice Machine 1 R 25,000.00 R 25,000.00 WHB c/w Knife Steriliser, knee operated 3 R 5,800.00 R 17,400.00 WHB c/w Handsaw Steriliser,knee operated 1 R 5,500.00 R 5,500.00 WHB only, knee operated 2 R 5,300.00 R 10,600.00 1 man Bootwash (wall mounted) 2 R 5,500.00 R 11,000.00

American Handsaw 1 R 600.00 R 600.00 Hygienic brooms (floor) 4 R 180.00 R 720.00 Brushes (scrubbing) 6 R 20.00 R 120.00 Plastic Crates 20 R 180.00 R 3,600.00 Gumboots (white with red sole) pair 8 R 80.00 R 640.00 Hard hats (white) 8 R 20.00 R 160.00 Water saver 1 R 900.00 R 900.00 Hose pipe 20m 1 R 1,200.00 R 1,200.00 Hose reel (galv) 3 R 180.00 R 540.00 Price scales 2 R 16,000.00 R 32,000.00 Track rollers 50 R 118.00 R 5,900.00 Breaking rail (+-10m) 1 R 18,000.00 R 18,000.00 Meat bins 2 R 6,000.00 R 12,000.00 Aprons 8 R 60.00 R 480.00

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Overalls 8 R 100.00 R 800.00 Box shute 1 R 6,000.00 R 6,000.00 Delivery in Moloto R 9,000.00 Installation at Moloto R 18,000.00

Sub-Total R 401,970.00 14% VAT R 56,275.80

Total R 458,245.80

7.2.1.6 Abattoir adaptation

The meat rail at the entrance to the processing plant will need to be adapted as well as areas inside the slaughtering area to accommodate goats. These adaptations can only be assessed and appropriate adaptations discussed with all parties during the design phase.

See picture below regarding small livestock entrance and meat rails adaptations required.

7.2.1.7 Lairages adaptations

The off-loading area will need to be adapted to accommodate goats. The lairages will require steel panels between the existing poles for at least 1.2m high. Goats are known for their ability to escape from holding areas and will do so especially with the smell of blood at the abattoir.

The area before the entrance to the abattoir and the stunning area might also need adaptation to accommodate goats. These adaptations can only be assessed and appropriate adaptations discussed with all parties during the design phase.

See picture below on lairages and area before entering the abattoir.

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7.2.1.8 Estimated Costs for the processing facility

The cost estimates were done on the information obtained on a site visit to the Kwamhlanga abattoir. A detail design will indicate what will be required and a more informed cost estimate can then be made. The estimates do not take into account the costs that contractors submit in an open tender. Emerging Contractors normally take longer than established contractors to complete the work which will have a cost implication. Contractors that have previously worked on abattoirs should be favored as the expertise of such a construction company will typically include a qualified plumber, certified electrician and master builder.

Please find below the estimated costs for the processing plant.

Meat processing area Superstructure and roof 16.2 x 6.3 R 459,270.00 Water and Sewer R 50,000.00 Electricity R 130,000.00 Cooling area to 10 deg R 200,000.00 Processing Equipment R 401,970.00 Abattoir area Meat rail adaptation R 50,000.00 Abattoir Requirements by Dept Agri R 50,000.00 Lairages Adapt lairages for goats (panels) R 50,000.00 Loading and offloading R 50,000.00

Estimate Costs R 1,441,240.00 10% Contingencies R 144,124.00

Sub-Total R 1,585,364.00 14% VAT R 221,950.96

TOTAL R 1,807,314.96

Construction Cost R 1,807,314.96 Design and Dept Agric. approval R 108,438.90

Electrical design R 20,000.00 Site Supervision 4 months R 126,512.05

ESTIMATED TOTAL R 2,062,265.90

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7.2.2 Har tebeest spruit 235 JR Farm Development

The farm is approximately 1821 Ha and only a portion will be developed for the goat project. The estimates were done on the assumption that the land is owned by the Thebisile Local Municipality and that approximately 600 goats will be farmed. Funds are available in 2005 and 2006 to complete the project.

See below the recommended layout of the goat farm.

The infrastructure proposed for the Goat breeding facility at the Hartebeestruit Farm will consist of the following: Kidding pens, feed store and overnight facility, ram pens and grazing camps. We also recommend 3 rondavel-type houses for the farm manager and two handlers as well as a training facility with offices and handling facilities.

7.2.2.1 Roads and Earthworks

The recommendation will be to dig trial pits and appoint a geotechnical and geological company to investigate the soil conditions and send the material to a soil laboratory for analysis of compaction ability. A survey of the underground strata should be conducted and positions for boreholes need to be identified. Borrow-pits will be identified on the farm. The material will be imported from the borrow area and compacted on-site to form terraces for the buildings. The terraces will have a 150mm layer of compacted material over the entire facility layout. A cut-off drain is recommended above the facilities.

7.2.2.2 Roads

A 5km road to the facilities should be constructed to be accessible in all weather conditions. The recommendation will be to construct 3m gravel wearing-course roads with sufficient drainage (culverts and side drains) to remove storm water from the road layer. An estimate of R100 000 per kilometer was used.

7.2.2.3 Eskom and Electricity

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An Eskom three-phase line was identified along the western border of the farm. It will cost approximately R 80 000.00 per kilometer for a three phase connection and another R25 000.00 per small transformer points at the borehole positions. After the boreholes have been drilled and sufficient water tested the position of the facilities will be confirmed. The shortest Eskom line will be established and the internal electrical cables to the facilities will be established.

7.2.2.4 Boreholes, Booster Pump station and pipelines

The boreholes will be equipped with pumps and pipelines installed to the various facilities as well as the grazing camp watering points. The 600 goats will require approximately 6000lt per day at the grazing camps. An additional 4000lt will be required at the different facilities thus 10m3 per day will be required from the boreholes. A booster pump station will be used from the existing dams to supplement the water to the grazing areas. Treatment of the dam water might be required and water samples will be submitted for testing. An allowance was made for 2 boreholes, a booster pump station, two water tanks and interconnecting pipe work.

7.2.2.5 Kidding Pens

The Kidding pens will be able to house 30 does with kids. The area required for each doe will be 3 x 2m and called a unit, thus 30 units will be required. See drawing N0046A3 001 for a typical layout of the kidding pens.

The units will be constructed in groups of 10, thus an area of 24.42m x 27.62m will be required. This area will be made up of the 3 groups of 10 units with a 1m concrete apron around the pens with 2 concrete roads of 2.5m separating the units. The walls will be 1.2 m plastered and painted brick walls with IBR roof sheeting on top of rafters. Each unit will have a drinking and feeding trough and closed by a galvanized gate as well as a single 100W light fitting. A back-up 5000L tank will be installed connected to a pump system. A cable will be installed from a transformer to a distribution board at one of the units.

The 675m2 area worked out at R 803.70 / m2 with a total estimated value of R 542 500.00.

7.2.2.6 Feedstore and Overnight Facility

Three Overnight facilities will be constructed in three grazing camps; this will be to accommodate 600 goats on the farm. One of the structures will be separated in half as a feed store and the other half a sleeping area for 120 goats. The recommendation is a building of 30m x 12m steel structure and built-up walls. One of the buildings will have a separating wall. See drawing N0046A3 002 for the typical layout of each structure.

The building will have a 100mm thick concrete floor with a double leaf brick wall, plastered and painted. Sliding doors on both sides will be connected to the steel structure which will consist of 6 x 5m wide bays. IBR roof sheeting will be used with bubble foil under each bays’ roof sheeting. Each bay will have a 4-ft flourescent light fitting and electrical connection points. A 100 liter geyser will be connected to two wash hand basins and the waterline will be connected to a drinking trough outside the facility.

The 448m2 area worked out at R 768.94 / m2 with a total estimated value of R 344 330.00 for each structure.

7.2.2.7 Training facility and offices

The training centre will consist of pre-manufactured items such as a loading ramp, scales, clamps, crushes, panels and various sorting gates. The building section of the training facility will be able to seat 30 people and also have ablution facilities and two small offices for the farm manager and staff. See drawing N0046 A3003 for a typical layout of such a facility. The estimated costs of the facility is R 350 000.00

7.2.2.8 Farm houses

Farm houses will be required for the farm manager and two people that will assist with the handling of the animals as well as the general management of the farm such as water, electricity, feed etc. The

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rondavel-type houses on Drawing N0046A3 004 are recommended but normal square RDP houses will be less expensive to construct. The estimated cost for one rondavel type house is R 120 000.00

7.2.2.9 Ram Pens

The ram pens should be at least 500m away from the doe overnight facilities and kidding pens. The recommended structure is 8 units that measure 6m x 4m each. See drawing N0046A3 005 for a typical layout of the ram pens.

The units will be constructed in groups of 4, thus an area of 19.1m x 16.5m will be required. This area will be made up of the 2 groups of 4 units with a 1m concrete apron around the pens with 1 concrete road of 2.5m separating the units. The walls will be 1.5 m plastered and painted brick walls with IBR roof sheeting on top of rafters. The roofed area will be at the top section of the unit with an area of 2 x 4m. Each unit will have a drinking and feeding trough and closed by a galvanized gate as well as a single 100W light fitting. A back-up 5000L tank will be installed connected to a pump system. The ram pens will require ± 800m of pipeline and electricity cable to connect to the water system. The electrical cable will be installed from a transformer to a distribution board at one of the units. See drawing N0046A3 005 for a typical layout of ram pens.

The 315.15m2 area worked out at R 820 / m2 with a total estimated value of R 258 423.00 excluding VAT.

The 50mm pipeline to the pens will cost ± R 60.00/m thus R 48 000.00 and electrical cable to the ram pens will be ± R 50.00/m thus R 40 000.00. These items are included under electrical and water.

7.2.2.10 Grazing Camps

Five grazing camps are recommended with Bonnox fencing 1.2m high enclosed. The camps could be further reduced into smaller camps to improve the grazing management.

Area (Ha) Camp 1, grazing camp 200 Camp 2, grazing camp and shed 170 Camp 3, grazing camp and shed 120 Camp 4, grazing camp, shed feed store combination

250

Camp 5, ram pens, kidding pens, training facility, houses

360

Total used for goat farming 1100 Farm size 1821 Left for vegetable farming 721

The camps will also be designed taking into consideration veld types (grazing capacity), borehole positions, distances required for roads, water pipes and electricity. The estimated distance of 30km of fencing will be required and at R 30.00 / m this will work out to R 900 000.00.

7.2.2.11 Handling facilities and water points

The grazing camps will be designed in such a way that the watering points could be shared and that handling facilities are constructed at this intersection of the grazing camps. The watering points will be on a concrete base to prevent erosion of the soil. Separation gates, steel panels, a crush and loading ramp will used to manage and handle the goats.

The estimated cost for the watering points and the handling facilities is R 150 000.00.

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7.2.2.12 Summary of Estimated Construction Costs

The Estimated Construction Costs is based on various assumptions such as current square meter construction rates and that the contractors are able to construct the various components in the contractually allowed time period.

Roads 3m wide 5km R 500,000.00 Roads and Earthworks for facilities R 300,000.00 Eskom 3km and internal electricity R 360,000.00 Boreholes, b pump, pipelines R 320,000.00 30 Kidding Pens R 542,500.00 3No Feed store and Overnight Facility R 1,032,990.00 Training Centre and offices R 350,000.00 3 No. Farm houses R 360,000.00 Ram Pens R 258,423.00 Handling Facilities and water points R 150,000.00 Grazing camps fencing 30km R 900,000.00

Estimate Costs R 5,073,913.00 10% Contingencies R 507,391.30

Sub-Total R 5,581,304.30 14% VAT R 781,382.60

TOTAL R 6,362,686.90

Consultants required outside of Scientific Roets (PTY) Ltd. will be appointed on the basis of requesting three quotations and appointing a suitable company. A 10% handling fee will be charged to the consultants’ invoices. The following consultants are envisaged on this project: Environmentalists, Land Surveyors, Geotechnical and Geohydrolical companies as well as Agronomists. The Preliminary design, detail design and site supervision is based on ECSA (Engineering Council of South Africa) rates.

EIA Scoping report R 25,000.00 Survey areas R 30,000.00 Geotechnical survey, supervision b/h

R 45,000.00

Agronomist R 30,000.00 Preliminary design R 105,800.00 Detailed design and tender R 158,700.00 Site supervision 6 months R 264,500.00 Disbursements R 30,000.00

Sub-Total R 689,000.00 14% VAT R 96,460.00

Total R 785,460.00

The construction period should take 6 months to complete under normal circumstances with experienced contractors. From previous experience, emerging contractors will require 6 to 10 months to complete the work. Thus, we recommend a budget of R 30 000.00 per month for the additional site supervision. Construction training will also be a recommendation if Emerging Contractors are appointed on these contracts.

7.2.3 Handling Fac ilit ies for Cont rac t Grow ing Co-operat ive farms

Three handling facilities specifically for goats will be designed, constructed and installed. These handling facilities will be installed at the farms where the goat interest groups have already been formed and training in goat management done.

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See pictures below for typical installation and training.

The following budget for the three units are envisaged.

Handling facilities, loading crush Scale and steel panels, 3No units R 150,000.00 Delivery Conc and installation 3No. R 30,000.00

Sub-Total R 180,000.00 14% VAT R 25,200.00

TOTAL R 205,200.00 Detailed design and site allocation R 15,000.00 Site supervision 3 sites R 21,000.00

Total R 36,000.00 14% VAT R 5,040.00

Total R 41,040.00

Site visits to the projects showed the following infrastructure already existing:

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7.2.4 Engineering and infrast ruc ture expenditure for 2005

From discussions with representatives of the Nkangala District Municipality it was indicated that R1.6million is available to be spent in 2005. The project should be structured in such a way that the money is spend visibly (on items such as infrastructure and animals) as well as other components such as social facilitation, institutional development, design and site supervision.

7.2.4.1 Kwamhlanga abattoir expenditure for 2005

The following recommendations are made on the Kwamhlanga abattoir meat processing facility:

x Design and submit construction plans to the Department of Agriculture, Veterinary Public Health for approval on the processing facility.

Design and Dept Agriculture approval R 128,438.90 Sub-Total R 128,438.90 14% VAT R 17,981.45

TOTAL R 146,420.34

7.2.4.2 Hartebeestspruit Farm expenditure for 2005

The following recommendations are made on the Hartebeestspruit farm:

x Appoint a geotechnical and geohydrolical consultant to investigate borehole positions and supervise the drilling of the boreholes.

x Drill two boreholes and test the water for quality and quantity.

x Do a preliminary design of the goat farm and a detail design on the feed store and overnight facility.

x Issue the building as a tender and appoint a contractor to construct the building while conducting site supervision.

EIA Scoping report R 25,000.00 Survey areas R 30,000.00 Geotechnical survey, supervision R 45,000.00 Drilling 2 boreholes R 60,000.00 Preliminary design of farm R 105,800.00 Detail design site supervision shed R 50,000.00 Feed store overnight 30x12 shed R 344,330.00

Sub-Total R 660,130.00 14% VAT R 92,418.20

TOTAL R 752,548.20

7.2.4.3 Co-Operative farms expenditure for 2005

The following recommendations are made on the Co-operative farms:

x Detail design and do a site allocation on three farms.

x Appoint a nominated contractor to build and install three units.

x Supervise the installation and supply training to the co-operatives to use the crush, scale and loading ramp.

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Handling facilities, loading crush scale and steel panels, 3No units R 150,000.00 Delivery Conc and installation 3No. R 30,000.00 Detailed design and site allocation R 15,000.00 Site supervision 3 sites R 21,000.00

Total R 216,000.00 14% VAT R 30,240.00

Total R 246,240.00

7.2.4.4 Total expenditure for 2005 on infrastructure

The following expenditure will be allocated for 2005 on infrastructure related work (VAT included).

TOTAL FOR 2005 R 1,391,448.54

The existing budget could further be managed as follows:

x Buy 120 goats for the farm (R 96 000.00)

x Mr. Zama Madikizela is based in Pretoria for three months to do the social facilitation and assist in forming Co-Operatives (Institutional development) – If Agri-SETA funding is approved, the full NQF1 learnership in Animal Production (Small Stock) can commence during this time.

Available 2005 R 1,600,000.00 Business plan R 50,000.00 Infrastructure R 1,391,448.54

Left R 158,551.46 Buy 120 Goats R 96,000.00

Social Facilitation Zama 3 months R 60,000.00 Left R 2,551.46

These are merely recommendations and other scenarios can be discussed.

7.4 Preliminary Layout drawings

7.4.1 List of Draw ings (Appendix D)

Please find the following drawings attached in Appendix D:

x N0046A3 001R00: Plan Layout of a 30 Doe Kidding pens

x N0046A3 002R00: Plan Layout of overnight facilities and Feed-store

x N0046A3 003R00: Plan layout of Training facility, loading ramp and crush

x N0046A3 004R00 Plan layout of farmhouse

x N0046A3 005R00 Plan layout of 8 unit ram pens

x N0046A3 006R00 Plan layout of Kwamhlanga Abattoir

x N0046A3 007R00 Plan layout of processing facility

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Chapter

8

Organisational arrangements Contract Goat Growing Co-operatives

Currently three Contract Growing Production farms are envisaged. Each of these Production Farms will be operated by a Farmer’s Co-operative consisting of approximately 20 members drawn from the group of 100 learners that participated in the Goat Skills Programme of May/June 2005. These Farmer’s Co-operatives will be located in initially, Thembisile Local Municipality and, at a later stage, J.S. Moraka and Emalahleni Local Municipalities. These Contract Growing Production Co-operatives will grow goats on contract to the Nkangala Goat Breeding and Production Co-operative.

Nkangala Goat Breeding and Production Co-operative The Nkangala Goat Breeding and Production Co-operative will consist of the 9 employees of this facility at Hartebeesspruit Farm with an additional three (and in future more) Co-operative members (representing each of their +/-20 individual members). The Hartebeesspruit Facility (Land and infrastructure) is owned by the Nkangala District Municipality and will be rented by the Nkangala Goat Breeding and Production Co-operative.

Kwamhlanga Goat Meat Processing Facility The Kwamhlanga Abattoir is owned by the Nkangala District Municipality. Tortello Investments (PTY) Ltd (represented by Mr Pieter Nortje and Mr Phillip Makwasha) will lease the abattoir from the DM. An expansion to this abattoir is proposed by this business plan. This will entail the addition of a meat processing facility to the existing plant. This facility will be rented from either Tortello Investments (PTY) Ltd or the Nkangala DM for approximately R 1000 per month.

Nkangala Goats (PTY) Ltd A Municipal Entity which is a private company can be established with the following shareholding:

x The Nkangala District Municipality (majority shareholder)

x The Nkangala Goat Breeding and Production Co-operative (9 members)

x The three (or more) Contract Goat Growing Co-operatives (+/- 60 members)

x Tortello Investments (PTY) Ltd (2 members)

x The employees of the meat processing facility at Kwamhlanga Abattoir (8 members)

The company that would be formed for this entire enterprise could be called Nkangala Goats (PTY) Ltd and would entail the establishment of a goat meat facility that would obtain its raw products from the member Contract Goat Co-operatives, the member Nkangala Goat Breeding and Production farm and other (non-member) resource-poor farmers within the Municipal region.

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The Municipal contribution to the company would be financial and infrastructural support; and the Co-operative contribution, through it sub-co-operatives, would be the production and supply of goats; meat products being the main product to be marketed by the company. The municipality owns the land on which the Breeding Farm and Abattoir is located and the Breeding Farm and Abattoir infrastructure. The company would enter into a lease agreement in respect of the land and infrastructure that is owned by the District Municipality.

In terms of Municipal Systems Amendment Act, 2003 section 86B(2)(a) provides that “No municipality may establish, or participate in the establishment of or acquire or hold interest in, a corporate body, including a trust, except where such corporate body is a private company, service utility or multi-jurisdictional service utility referred to in subsection (1)”. Section 86C provides for the establishment and acquisition of private companies. Section 86C (2) provide that:

A municipality may in terms of subsection (1)(a) or (b) either acquire or hold full ownership of a private company, or acquire or hold a lesser interest in a private company.

A municipality may acquire or hold such a lesser interest in a private company only if all the other interest are held by-

i) another municipality or municipalities;

ii) a national or provincial organ of state or organs of state; or

iii) any combination of institutions referred to in subparagraphs (i) and (ii).

A municipality may, despite paragraph (b), acquire or hold an interest in a private company in which an investor other than another municipality or a national or provincial organ of state has an interest, but only if effective control in the private company vests in-

i) that municipality;

ii) another municipality; or

iii) that municipality and another municipality collectively.

The Act defines effective control to mean the power which the shareholder in the private company may have-

i) to appoint or remove at least the majority of the board of directors of the private company; or

ii) to control at least the majority of the voting rights at a general meeting of the private company.

If the Municipality has effective control over the private company, the legal status of such a private company would be that of a municipal entity. The benefit in this is that the Co-operative would have, on the one hand, a strategic partner for guidance and to rely on should hard times befall the company and on the other, the Municipality would be able to justify and protect its spending. There is no prohibition in terms of the Act that if a company is a municipal entity therefore it cannot become an independent company. If shareholding changes so does the status of the company. In the event that the municipality loses effective control of the company, such would mean that the municipality would cease from being a shareholder.

Municipal withdrawal from being a shareholder can be provided for in the Shareholder’s Agreement. A provision in the Shareholder’s Agreement to the effect that the municipality intends to sell or donate its shares in the company in due course once the company has been duly consolidated can be inserted in the agreement. The Municipality can also reserve a right in the Shareholder’s Agreement to decide when and to whom it can sell or donate its shares. Such disposal would always be subject to the provisions of Section 86G of the Act.

Section 86D(2) provides that “ a private company which is a municipal entity-

i) must restrict it activities to the purpose for which it is used by its parent municipality in terms of section 86E (1)(a); and

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ii) has no competence to perform any activity which falls outside the functions and powers of its parent municipality contemplated by section 8”.

The Act in Section 86E lays down the conditions that the Municipality has to comply with when establishing or acquiring interest in privates companies, and those conditions are:

86E. (1) A municipality may establish a private company or acquire an interest in such a company only-

a) for the purpose of utilising the company as a mechanism to assist it in the performance of any of its functions or powers referred to in section 8;

b) if the municipality can demonstrate that –

i) there is a need to perform that function or power in accordance with business practices in order to achieve the strategic objectives of the municipality more effectively; and

(ii) the company would benefit the local community; and

iii) if any other conditions that may be prescribed have been complied with.

The appointment of directors to the company is provided for in terms of Section 93E, particularly, subsection 2 provides for the procedure to be followed by the Municipality when appointing directors. It must be emphasized that the Act prohibits councilors, municipal officials of a parent municipality of the company, members of provincial legislature or National Assembly from being appointed as directors of a company which is a municipal entity.

In light of all the circumstances of this matter and principles of law applicable, we are of the opinion that the Nkangala District Municipality and Nkangala Goats can jointly form a (Pty) Ltd. The majority shareholding in the (Pty) Ltd would and must be held by the Municipality for it to comply with the provisions of both Municipal Structures Amendment Act and Municipal Finance Management Act of 2003. A Shareholder’s Agreement can be drawn up to deal with the issues of capital, shareholding, sale of shares, board of directors and other pertinent provisions.

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Chapter

9

Human Resources Estimated human resource requirements: Central Breeding Facility

Farm Manager and Sales Manager

The breeding facility will require these two managers to operate the business aspects of the operation. Suggested salaries for these staff are R 3500 per month.

Goat handlers

5 staff will be required to receive, care for, feed and water the breeding herd. Suggested salaries for these staff are R 1500 per worker per month.

Trainers / Extension officers

2 staff will be required to liaise with farmers in the community regarding the purchase of animals, and with the contract Co-operatives regarding improvement in their farm operations. Suggested salaries for these staff are R 2000 per month.

Estimated human resource requirements: Goat co-operatives Goat Farm ers

Approximately 58 youth out of the 75 already trained will have the opportunity in this project to become full-time farmers. They will be based at 3 (or more) separate goat farms in the area. Profit sharing will take place on a monthly basis as shown in the cash flow statements attached.

Estimated human resource requirements: Kwamhlanga Abattoir Meat Processors

Eight of the youth from the 75 already trained in goat management will be recruited to serve as meat processors. Suggested salaries for these staff are R 1500 per month.

Training It is recommended that all 75 learners who were associated with the Goat Skills Programme held during May 2005 should enroll further for a full NQF 1 Qualification: Animal Production (Small stock). This will equip them with the business, life and environmental skills required to operate their own farming enterprises. Funding for this has been sourced from the Agri-SETA by Scientific Roets (PTY) Ltd. Meat processing training will be required by the 8 meat processors. This can be undertaken at the Irene, Animal Nutrition and Products Institute at Irene, Pretoria. The staff of the Meat Industry Centre in Irene operate and manage a red meat abattoir and processing facility on-site in Irene, Centurion. These researchers are well-known for their excellent training and meat product development expertise. Students can

77

be accommodated on-site during their training programme. This facility has assisted in the training of other goat meat operations in South Africa and provide valuable back-stopping services. The two managers and two trainers will be mentored to fulfil their functions successfully.

Summary: Technical Training Cost Estimate No. of

trainees Cost of training

VAT Total cost

Meat processing training 8 200000 R 28,000.00 R 228,000.00 NQF 1: Animal production (Small Stock)

75 Agri-SETA Agri-SETA Agri-SETA

78

Chapter

10

Implementat ion Scheduling Project Implementation Plan

From Chapter 7, t he follow ing: Recommended expenditure for 2005

From discussions with representatives of the Nkangala District Municipality it was indicated that R1.6million is available to be spent in 2005. The project should be structured in such a way that the money is spend visibly (on items such as infrastructure and animals) as well as other components such as social facilitation, institutional development, design and site supervision.

Kw amhlanga abat toir expenditure for 2005

The following recommendations are made on the Kwamhlanga abattoir meat processing facility:

x Design and submit construction plans to the Department of Agriculture, Veterinary Public Health for approval on the processing facility.

Design and Dept Agriculture approval R 128,438.90 Sub-Total R 128,438.90 14% VAT R 17,981.45

TOTAL R 146,420.34

Hartebeestspruit Farm expenditure for 2005

The following recommendations are made on the Hartebeestspruit farm:

x Appoint a geotechnical and geohydrolical consultant to investigate borehole positions and supervise the drilling of the boreholes.

x Drill two boreholes and test the water for quality and quantity.

x Do a preliminary design of the goat farm and a detail design on the feed store and overnight facility.

x Issue the building as a tender and appoint a contractor to construct the building while conducting site supervision.

EIA Scoping report R 25,000.00 Survey areas R 30,000.00 Geotechnical survey, supervision R 45,000.00 Drilling 2 boreholes R 60,000.00 Preliminary design of farm R 105,800.00 Detail design site supervision shed R 50,000.00

79

Feed store overnight 30x12 shed R 344,330.00 Sub-Total R 660,130.00 14% VAT R 92,418.20

TOTAL R 752,548.20

Co-Operat ive farms expenditure for 2005

The following recommendations are made on the Co-operative farms:

x Detail design and do a site allocation on three farms.

x Appoint a nominated contractor to build and install three units.

x Supervise the installation and supply training to the co-operatives to use the crush, scale and loading ramp.

Handling facilities, loading crush scale and steel panels, 3No units R 150,000.00 Delivery Conc and installation 3No. R 30,000.00 Detailed design and site allocation R 15,000.00 Site supervision 3 sites R 21,000.00

Total R 216,000.00 14% VAT R 30,240.00

Total R 246,240.00

Total expenditure for 2005 on infrast ruc ture

The following expenditure will be allocated for 2005 on infrastructure related work (VAT included).

TOTAL FOR 2005 R 1,391,448.54

The ex ist ing budget could further be managed as follow s:

x Buy 120 goats for the farm (R 96 000.00)

x Mr. Zama Madikizela is based in Pretoria for three months to do the social facilitation and assist in forming Co-Operatives (Institutional development) – If Agri-SETA funding is approved, the full NQF1 learnership in Animal Production (Small Stock) can commence during this time.

Available 2005 R 1,600,000.00 Business plan R 50,000.00 Infrastructure R 1,391,448.54 Buy 120 Goats R 96,000.00 Social Facilitation (Institutional Development) 3 months R 60,000.00 Left R 2,551.46

80

Chapter

11

Financial and Economic Evaluat ion (Discussed in text and refer to attached Cash Flow Statements:

Appendices A, B and C)

81

Appendix

A Cash flow statements: Nkangala

Breeding Farm

82

CASH FLOW STATEMENT FOR GOAT CO-OPERATIVE SERVING AS THE NKANGALA GOAT BREEDING FARM 2005

Month COMMENTS SEP OCT NOV DEC INCOME R 45,000.00 R 35,000.00 R 35,000.00 R 35,000.00 EXPENSES R 47,129.75 R 35,570.07 R 35,493.68 R 35,417.29 PRODUCTION LOAN - LAND BANK If 120 of the start-up animals were granted and a loan taken to purchase the rest R 396,000.00 R 385,000.00 R 374,000.00 R 363,000.00 Total loans repayable over 36 months R 396,000.00 CASH RECEIPTS Start-up funding 6 months R 190,000.00 R 45,000.00 R 35,000.00 R 35,000.00 R 35,000.00 Goat sales Numbers of males bought for slaughter per month 0 0 0 0 Average weight of goats purchased for resale = 30kg 30 30 30 30 Goats sold to abattoir at R12/kg liveweight R 0.00 R 0.00 R 0.00 R 0.00 Numbers of own males produced for slaughter 0 0 0 0 Average weight of goats for sale = 30 kg 30 30 30 30 Goats sold at R 12/kg liveweight R 0.00 R 0.00 R 0.00 R 0.00 Numbers of doelings to sell for breeding stock 0 0 0 0 Doelings sold at R500 per animal R 0.00 R 0.00 R 0.00 R 0.00 TOTAL CASH RECEIPTS R 45,000.00 R 35,000.00 R 35,000.00 R 35,000.00 RUNNING COSTS Operational costs Equipment, animal management tools, medication R 9,151.00 R 896.46 R 896.46 R 896.46 Salaries 5 Goat handlers for the operation @ R 1500 per month R 7,500.00 R 7,500.00 R 7,500.00 R 7,500.00 1 Farm manager + 1 Sales manager R 7,000.00 R 7,000.00 R 7,000.00 R 7,000.00 2 Goat trainers/ extension officers R 4,000.00 R 4,000.00 R 4,000.00 R 4,000.00 Administration costs Faxes, phones and transport R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 Animal feed (flushing, breeding supplementation) 0.25kg per animal R 3,228.75 Water and lights Farm R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 Purchase of animals for slaughter Numbers of males for slaughter per month 0 0 0 0 Average weight of goats for sale = 30kg 30 30 30 30 Goats bought at R9.5/kg liveweight R 0.00 R 0.00 R 0.00 R 0.00 TOTAL RUNNING COSTS R 33,379.75 R 21,896.46 R 21,896.46 R 21,896.46 Loan redemption Monthly installment R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 Interest on loan (25%) R 2,750.00 R 2,673.61 R 2,597.22 R 2,520.83 Total Expenses R 47,129.75 R 35,570.07 R 35,493.68 R 35,417.29 Monthly surplus (shortfall) -R 2,129.75 -R 570.07 -R 493.68 -R 417.29 Balance available at month end -R 2,129.75 -R 2,699.82 -R 3,193.50 -R 3,610.79 Profit sharing amongst participants (each) 75 members R 0.00 R 0.00 R 0.00 R 0.00 Profit sharing total per month R 0.00 R 0.00 R 0.00 R 0.00 Balance in bank at month end -R 2,129.75 -R 2,699.82 -R 3,193.50 -R 3,610.79

83

CASH FLOW STATEMENT FOR GOAT CO-OPERATIVE SERVING AS THE NKANGALA GOAT BREEDING FARM

2006

Month COMMENTS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

INCOME R 64,640.00 R 64,640.00 R 44,640.00 R 44,640.00 R 94,640.00 R 94,640.00 R 94,640.00 R 94,640.00 R 21,600.00 R 21,600.00 R 21,600.00 R 21,600.00

EXPENSES R 52,406.24 R 52,295.18 R 52,184.13 R 55,301.82 R 56,520.35 R 56,355.13 R 56,189.90 R 56,024.68 R 66,149.63 R 53,766.99 R 53,690.60 R 53,614.21

PRODUCTION LOAN - LAND BANK

If 120 of the start-up animals were granted and a loan taken to purchase the rest

R 352,000.00

R 341,000.00 R 330,000.00 R 319,000.00

R 308,000.00

R 297,000.00

R 286,000.00 R 275,000.00

R 264,000.00

R 253,000.00

R 242,000.00 R 231,000.00

Total loans repayable over 36 months

CASH RECEIPTS Start-up funding 6 months R 190,000.00 R 20,000.00 R 20,000.00

Goat sales Numbers of males bought for slaughter per month 60 60 60 60 60 60 60 60 60 60 60 60

Average weight of goats purchased for resale = 30kg 30 30 30 30 30 30 30 30 30 30 30 30

Goats sold to abattoir at R12/kg liveweight R 21,600.00 R 21,600.00 R 21,600.00 R 21,600.00 R 21,600.00 R 21,600.00 R 21,600.00 R 21,600.00 R 21,600.00 R 21,600.00 R 21,600.00 R 21,600.00

Numbers of own males produced for slaughter 64 64 64 64 64 64 64 64 0 0 0 0

Average weight of goats for sale = 30 kg 30 30 30 30 30 30 30 30 30 30 30 30

Goats sold at R 12/kg liveweight R 23,040.00 R 23,040.00 R 23,040.00 R 23,040.00 R 23,040.00 R 23,040.00 R 23,040.00 R 23,040.00 R 0.00 R 0.00 R 0.00 R 0.00

Numbers of doelings to sell for breeding stock 0 0 0 0 100 100 100 100 0 0 0 0

Doelings sold at R500 per animal R 0.00 R 0.00 R 0.00 R 0.00 R 50,000.00 R 50,000.00 R 50,000.00 R 50,000.00 R 0.00 R 0.00 R 0.00 R 0.00

TOTAL CASH RECEIPTS R 64,640.00 R 64,640.00 R 44,640.00 R 44,640.00 R 94,640.00 R 94,640.00 R 94,640.00 R 94,640.00 R 21,600.00 R 21,600.00 R 21,600.00 R 21,600.00

RUNNING COSTS

Operational costs Equipment, animal management tools, medication R 861.79 R 827.13 R 792.46 R 757.79 R 668.96 R 580.13 R 491.29 R 402.46 R 9,560.04 R 1,060.04 R 1,060.04 R 1,060.04

Salaries 5 Goat handlers for the operation @ R 1500 per month R 7,500.00 R 7,500.00 R 7,500.00 R 7,500.00 R 7,500.00 R 7,500.00 R 7,500.00 R 7,500.00 R 8,250.00 R 8,250.00 R 8,250.00 R 8,250.00

1 Farm manager + 1 Sales manager R 7,000.00 R 7,000.00 R 7,000.00 R 7,000.00 R 7,000.00 R 7,000.00 R 7,000.00 R 7,000.00 R 7,700.00 R 7,700.00 R 7,700.00 R 7,700.00

2 Goat trainers/ extension officers R 4,000.00 R 4,000.00 R 4,000.00 R 4,000.00 R 4,000.00 R 4,000.00 R 4,000.00 R 4,000.00 R 4,400.00 R 4,400.00 R 4,400.00 R 4,400.00

Administration costs Faxes, phones and transport R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 Animal feed (flushing, breeding supplementation) 0.25kg per animal R 3,228.75 R 4,612.50 R 4,612.50 R 4,612.50 R 4,612.50 R 3,806.25

Water and lights Farm R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 Purchase of animals for slaughter

Numbers of males for slaughter per month 60 60 60 60 60 60 60 60 60 60 60 60

Average weight of goats for sale = 30kg 30 30 30 30 30 30 30 30 30 30 30 30

Goats bought at R9.5/kg liveweight R 17,100.00 R 17,100.00 R 17,100.00 R 17,100.00 R 17,100.00 R 17,100.00 R 17,100.00 R 17,100.00 R 17,100.00 R 17,100.00 R 17,100.00 R 17,100.00

TOTAL RUNNING COSTS R 38,961.79 R 38,927.13 R 38,892.46 R 42,086.54 R 43,381.46 R 43,292.63 R 43,203.79 R 43,114.96 R 53,316.29 R 41,010.04 R 41,010.04 R 41,010.04

Loan redemption Monthly installment R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00

84

Interest on loan (25%) R 2,444.44 R 2,368.06 R 2,291.67 R 2,215.28 R 2,138.89 R 2,062.50 R 1,986.11 R 1,909.72 R 1,833.33 R 1,756.94 R 1,680.56 R 1,604.17

Total Expenses R 52,406.24 R 52,295.18 R 52,184.13 R 55,301.82 R 56,520.35 R 56,355.13 R 56,189.90 R 56,024.68 R 66,149.63 R 53,766.99 R 53,690.60 R 53,614.21 Monthly surplus (shortfall) R 12,233.76 R 12,344.82 -R 7,544.13 -R 10,661.82 R 38,119.65 R 38,284.88 R 38,450.10 R 38,615.32 -R 44,549.63 -R 32,166.99 -R 32,090.60 -R 32,014.21 Balance available at month end R 8,622.97 R 20,967.79 R 13,423.67 R 2,761.85 R 40,881.50 R 79,166.38 R 95,116.47 R 133,731.79 R 89,182.17 R 57,015.18 R 24,924.58 -R 7,089.62 Profit sharing amongst participants (each) 75 members R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 300.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 Profit sharing total per month R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 22,500.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 Balance in bank at month end R 8,622.97 R 20,967.79 R 13,423.67 R 2,761.85 R 40,881.50 R 56,666.38 R 95,116.47 R 133,731.79 R 89,182.17 R 57,015.18 R 24,924.58 -R 7,089.62

85


Month COMMENTS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC INCOME R 49,320.00 R 49,320.00 R 49,320.00 R 49,320.00 R 111,820.00 R 111,820.00 R 111,820.00 R 111,820.00 R 21,600.00 R 21,600.00 R 21,600.00 R 21,600.00 EXPENSES R 53,496.11 R 53,378.01 R 53,259.92 R 56,948.07 R 58,393.51 R 58,207.71 R 58,021.90 R 57,836.10 R 67,267.96 R 54,885.32 R 54,808.93 R 54,732.54


If 120 of the start-up animals were granted and a loan taken to purchase the rest R 220,000 R 209,000 R 198,000 R 187,000 R 176,000 R 165,000 R 154,000 R 143,000 R 132,000 R 121,000 R 110,000 R 99,000.


CASH RECEIPTS Start-up funding 6 months R 190,000.00

Goat sales

Numbers of males bought for slaughter per month 60 60 60 60 60 60 60 60 60 60 60 60








TOTAL CASH RECEIPTS R 49,320.00 R 49,320.00 R 49,320.00 R 49,320.00 R 111,820.00 R 111,820.00 R 111,820.00 R 111,820.00 R 21,600.00 R 21,600.00 R 21,600.00 R 21,600.00 RUNNING COSTS

Operational costs

Equipment, animal management tools, medication R 1,018.33 R 976.63 R 934.92 R 893.21 R 783.79 R 674.38 R 564.96 R 455.54 R 9,560.04 R 1,060.04 R 1,060.04 R 1,060.04

Salaries

5 Goat handlers for the operation @ R 1500 per month R 8,250.00 R 8,250.00 R 8,250.00 R 8,250.00 R 8,250.00 R 8,250.00 R 8,250.00 R 8,250.00 R 9,075.00 R 9,075.00 R 9,075.00 R 9,075.00



Administration costs

Faxes, phones and transport R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00

Animal feed 0.25kg per animal R 3,806.25 R 5,437.50 R 5,437.50 R 5,437.50 R 5,437.50 R 3,806.25

86

(flushing, breeding supplementation) Water and lights Farm R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 Purchase of animals for slaughter




TOTAL RUNNING COSTS R 40,968.33 R 40,926.63 R 40,884.92 R 44,649.46 R 46,171.29 R 46,061.88 R 45,952.46 R 45,843.04 R 55,351.29 R 43,045.04 R 43,045.04 R 43,045.04 Loan redemption Monthly installment R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 Interest on loan (25%) R 1,527.78 R 1,451.39 R 1,375.00 R 1,298.61 R 1,222.22 R 1,145.83 R 1,069.44 R 993.06 R 916.67 R 840.28 R 763.89 R 687.50 Total Expenses R 53,496.11 R 53,378.01 R 53,259.92 R 56,948.07 R 58,393.51 R 58,207.71 R 58,021.90 R 57,836.10 R 67,267.96 R 54,885.32 R 54,808.93 R 54,732.54 Monthly surplus (shortfall) -R 4,176.11 -R 4,058.01 -R 3,939.92 -R 7,628.07 R 53,426.49 R 53,612.29 R 53,798.10 R 53,983.90 -R 45,667.96 -R 33,285.32 -R 33,208.93 -R 33,132.54 Balance available at month end -R 11,265.74 -R 15,323.75 -R 19,263.67 -R 26,891.74 R 26,534.75 R 80,147.04 R 111,445.14 R 165,429.04

R 119,761.08 R 86,475.76 R 53,266.83 R 20,134.29

Profit sharing amongst participants (each) 75 members R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 300.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 Profit sharing total per month R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 22,500.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 Balance in bank at month end -R 11,265.74 -R 15,323.75 -R 19,263.67 -R 26,891.74 R 26,534.75 R 57,647.04 R 111,445.14 R 165,429.04

R 119,761.08 R 86,475.76 R 53,266.83 R 20,134.29

87




If 120 of the start-up animals were granted and a loan taken to purchase the rest R 88,000.00 R 77,000.00 R 66,000.00 R 55,000.00 R 44,000.00 R 33,000.00 R 22,000.00 R 11,000.00 R 0.00 R 0.00 R 0.00 R 0.00


CASH RECEIPTS Start-up funding 6 months R 190,000.00

Goat sales










Operational costs

Equipment, animal management tools, medication R 1,018.33 R 976.63 R 934.92 R 893.21 R 783.79 R 674.38 R 564.96 R 455.54 R 9,560.04 R 1,060.04 R 1,060.04 R 1,060.04

Salaries

5 Goat handlers for the operation @ R 1500 per month R 9,075.00 R 9,075.00 R 9,075.00 R 9,075.00 R 9,075.00 R 9,075.00 R 9,075.00 R 9,075.00 R 9,982.50 R 9,075.00 R 9,075.00 R 9,075.00





88

Animal feed (flushing, breeding supplementation) 0.25kg per animal R 3,806.25 R 5,437.50 R 5,437.50 R 5,437.50 R 5,437.50 R 3,806.25 Water and lights Farm R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 Purchase of animals for slaughter




TOTAL RUNNING COSTS R 43,003.33 R 42,961.63 R 42,919.92 R 46,684.46 R 48,206.29 R 48,096.88 R 47,987.46 R 47,878.04 R 57,589.79 R 43,045.04 R 43,045.04 R 43,045.04 Loan redemption Monthly installment R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 11,000.00 R 0.00 R 0.00 R 0.00 R 0.00 Interest on loan (25%) R 611.11 R 534.72 R 458.33 R 381.94 R 305.56 R 229.17 R 152.78 R 76.39 R 0.00 R 0.00 R 0.00 R 0.00 Total Expenses R 54,614.44 R 54,496.35 R 54,378.25 R 58,066.40 R 59,511.85 R 59,326.04 R 59,140.24 R 58,954.43 R 57,589.79 R 43,045.04 R 43,045.04 R 43,045.04 Monthly surplus (shortfall) -R 5,294.44 -R 5,176.35 -R 5,058.25 -R 8,746.40 R 52,308.15 R 52,493.96 R 52,679.76 R 52,865.57 -R 35,989.79 -R 21,445.04 -R 21,445.04 -R 21,445.04 Balance available at month end R 14,839.85 R 9,663.50 R 4,605.25 -R 4,141.15 R 48,167.00 R 100,660.96 R 108,340.72 R 161,206.29

R 125,216.50

R 103,771.46 R 82,326.42 R 60,881.38

Profit sharing amongst participants (each) 75 members R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 600.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 Profit sharing total per month R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 45,000.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 Balance in bank at month end R 14,839.85 R 9,663.50 R 4,605.25 -R 4,141.15 R 48,167.00 R 55,660.96 R 108,340.72 R 161,206.29

R 125,216.50

R 103,771.46 R 82,326.42 R 60,881.38

89


Month COMMENTS JAN FEB MAR APR MAY JUN JUL AUG

INCOME R 49,320.00 R 49,320.00 R 49,320.00 R 49,320.00 R

111,820.00 R

111,820.00 R

111,820.00 R 111,820.00 EXPENSES R 43,003.33 R 42,961.63 R 42,919.92 R 46,684.46 R 48,206.29 R 48,096.88 R 47,987.46 R 47,878.04

PRODUCTION LOAN - LAND BANK If 120 of the start-up animals were granted and a loan taken to purchase the rest R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00

Total loans repayable over 36 months CASH RECEIPTS Start-up funding 6 months R 190,000.00 Goat sales Numbers of males bought for slaughter per month 60 60 60 60 60 60 60 60

Average weight of goats purchased for resale = 30kg 30 30 30 30 30 30 30 30

Goats sold to abattoir at R12/kg liveweight R 21,600.00 R 21,600.00 R 21,600.00 R 21,600.00 R 21,600.00 R 21,600.00 R 21,600.00 R 21,600.00 Numbers of own males produced for slaughter 77 77 77 77 77 77 77 77 Average weight of goats for sale = 30 kg 30 30 30 30 30 30 30 30 Goats sold at R 12/kg liveweight R 27,720.00 R 27,720.00 R 27,720.00 R 27,720.00 R 27,720.00 R 27,720.00 R 27,720.00 R 27,720.00 Numbers of doelings to sell for breeding stock 0 0 0 0 125 125 125 125 Doelings sold at R500 per animal R 0.00 R 0.00 R 0.00 R 0.00 R 62,500.00 R 62,500.00 R 62,500.00 R 62,500.00

TOTAL CASH RECEIPTS R 49,320.00 R 49,320.00 R 49,320.00 R 49,320.00 R

111,820.00 R

111,820.00 R

111,820.00 R 111,820.00 RUNNING COSTS Operational costs Equipment, animal management tools, medication R 1,018.33 R 976.63 R 934.92 R 893.21 R 783.79 R 674.38 R 564.96 R 455.54

Salaries 5 Goat handlers for the operation @ R 1500 per month R 9,075.00 R 9,075.00 R 9,075.00 R 9,075.00 R 9,075.00 R 9,075.00 R 9,075.00 R 9,075.00

1 Farm manager + 1 Sales manager R 8,470.00 R 8,470.00 R 8,470.00 R 8,470.00 R 8,470.00 R 8,470.00 R 8,470.00 R 8,470.00 2 Goat trainers/ extension officers R 4,840.00 R 4,840.00 R 4,840.00 R 4,840.00 R 4,840.00 R 4,840.00 R 4,840.00 R 4,840.00 Administration costs Faxes, phones and transport R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 Animal feed (flushing, breeding supplementation) 0.25kg per animal R 3,806.25 R 5,437.50 R 5,437.50 R 5,437.50 R 5,437.50 Water and lights Farm R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 Purchase of animals for slaughter Numbers of males for slaughter per month 60 60 60 60 60 60 60 60 Average weight of goats for sale = 30kg 30 30 30 30 30 30 30 30 Goats bought at R9.5/kg liveweight R 17,100.00 R 17,100.00 R 17,100.00 R 17,100.00 R 17,100.00 R 17,100.00 R 17,100.00 R 17,100.00 TOTAL RUNNING COSTS R 43,003.33 R 42,961.63 R 42,919.92 R 46,684.46 R 48,206.29 R 48,096.88 R 47,987.46 R 47,878.04 Loan redemption Monthly installment R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 Interest on loan (25%) R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 Total Expenses R 43,003.33 R 42,961.63 R 42,919.92 R 46,684.46 R 48,206.29 R 48,096.88 R 47,987.46 R 47,878.04 Monthly surplus (shortfall) R 6,316.67 R 6,358.38 R 6,400.08 R 2,635.54 R 63,613.71 R 63,723.13 R 63,832.54 R 63,941.96

Balance available at month end R 67,198.04 R 73,556.42 R 79,956.50 R 82,592.04 R

146,205.75 R

209,928.88 R

228,761.42 R 292,703.38 Profit sharing amongst participants (each) 75 members R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 600.00 R 0.00 R 0.00 Profit sharing total per month R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 45,000.00 R 0.00 R 0.00

Balance in bank at month end R 67,198.04 R 73,556.42 R 79,956.50 R 82,592.04 R

146,205.75 R

164,928.88 R

228,761.42 R 292,703.38

90

Appendix

B Cash Flow Statements: Contract

Co-operative Farms

91

CASH FLOW STATEMENT FOR GOAT CO-OPERATIVE SERVING AS A NKANGALA PRODUCTION FARM (without production loan) 2005

Month COMMENTS SEP OCT NOV DEC INCOME R 10,000.00 R 10,000.00 R 10,000.00 R 10,000.00 EXPENSES R 18,398.56 R 8,251.85 R 8,222.14 R 8,192.44 PRODUCTION LOAN - LAND BANK repayable over 36 months R 154,000.00 R 149,722.22 R 145,444.44 R 141,166.67 Total loans R 154,000.00 CASH RECEIPTS Start-up funding (6 months) R 60,000.00 R 10,000.00 R 10,000.00 R 10,000.00 R 10,000.00 Goat sales Numbers of males sold for slaughter per month 0 0 0 0 Average weight of goats sold = 30kg 30 30 30 30 Goats sold at R9.5/kg liveweight R 0.00 R 0.00 R 0.00 R 0.00

Numbers of doelings and does replaced to sell for slaughter or community 0 0 0 0

Doelings sold at R400 per animal R 0.00 R 0.00 R 0.00 R 0.00 TOTAL CASH RECEIPTS R 10,000.00 R 10,000.00 R 10,000.00 R 10,000.00 RUNNING COSTS Operational costs Equipment, animal management tools, medication R 8,933.33 R 433.33 R 433.33 R 433.33 Administration costs Faxes, phones and transport R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 Animal feed (flushing, breeding supplementation) 0.25kg per animal R 1,617.00 Water and lights Farm R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 Rental of property from Dept. Agriculture R 1.00 R 1.00 R 1.00 R 1.00 TOTAL RUNNING COSTS R 13,051.33 R 2,934.33 R 2,934.33 R 2,934.33 Loan redemption Monthly installment R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 Interest on loan (25%) R 1,069.44 R 1,039.74 R 1,010.03 R 980.32 Total Expenses R 18,398.56 R 8,251.85 R 8,222.14 R 8,192.44 Monthly surplus (shortfall) -R 8,398.56 R 1,748.15 R 1,777.86 R 1,807.56 Balance available month end -R 8,398.56 -R 6,650.40 -R 4,872.55 -R 3,064.98 Profit sharing amongst participants (each) 20 members R 100.00 R 100.00 R 100.00 R 100.00 Profit sharing total per month R 2,000.00 R 2,000.00 R 2,000.00 R 2,000.00 Balance in bank at month end -R 10,398.56 -R 8,650.40 -R 6,872.55 -R 5,064.98

92

CASH FLOW STATEMENT FOR GOAT CO-OPERATIVE SERVING AS A NKANGALA PRODUCTION FARM (without production loan)

2006



EXPENSES R 8,162.73 R 8,133.02 R 8,103.31 R 9,690.61 R 10,353.90 R 10,324.19 R 10,294.49 R 10,264.78 R 18,525.07 R 7,895.37 R 7,865.66 R 7,835.95 PRODUCTION LOAN - LAND BANK repayable over 36 months R 136,888.89 R 132,611.11 R 128,333.33 R 124,055.56 R 119,777.78 R 115,500.00 R 111,222.22 R 106,944.44 R 102,666.67 R 98,388.89 R 94,111.11 R 89,833.33

Total loans

CASH RECEIPTS Start-up funding (6 months) R 60,000.00 R 10,000.00 R 10,000.00

Goat sales Numbers of males sold for slaughter per month 20 20 20 20 20 20 20 20 20 20 20 20

Average weight of goats sold = 30kg 30 30 30 30 30 30 30 30 30 30 30 30

Goats sold at R9.5/kg liveweight R 5,700.00 R 5,700.00 R 5,700.00 R 5,700.00 R 5,700.00 R 5,700.00 R 5,700.00 R 5,700.00 R 5,700.00 R 5,700.00 R 5,700.00 R 5,700.00

Numbers of doelings and does replaced to sell for slaughter or community 20 20 20 20 20 20 20 20 20 20 20 20

Doelings sold at R400 per animal R 8,000.00 R 8,000.00 R 8,000.00 R 8,000.00 R 8,000.00 R 8,000.00 R 8,000.00 R 8,000.00 R 8,000.00 R 8,000.00 R 8,000.00 R 8,000.00


RUNNING COSTS

Operational costs

Equipment, animal management tools, medication R 433.33 R 433.33 R 433.33 R 433.33 R 433.33 R 433.33 R 433.33 R 433.33 R 8,933.33 R 433.33 R 433.33 R 433.33

Administration costs Faxes, phones and transport R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00

Animal feed (flushing, breeding supplementation) 0.25kg per animal R 1,617.00 R 2,310.00 R 2,310.00 R 2,310.00 R 2,310.00 R 2,100.00

Water and lights Farm R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 Rental of property from Dept. Agriculture R 1.00 R 1.00 R 1.00 R 1.00 R 1.00 R 1.00 R 1.00 R 1.00 R 1.00 R 1.00 R 1.00 R 1.00 TOTAL RUNNING COSTS R 2,934.33 R 2,934.33 R 2,934.33 R 4,551.33 R 5,244.33 R 5,244.33 R 5,244.33 R 5,244.33 R 13,534.33 R 2,934.33 R 2,934.33 R 2,934.33

Loan redemption Monthly installment R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78

Interest on loan (25%) R 950.62 R 920.91 R 891.20 R 861.50 R 831.79 R 802.08 R 772.38 R 742.67 R 712.96 R 683.26 R 653.55 R 623.84

Total Expenses R 8,162.73 R 8,133.02 R 8,103.31 R 9,690.61 R 10,353.90 R 10,324.19 R 10,294.49 R 10,264.78 R 18,525.07 R 7,895.37 R 7,865.66 R 7,835.95 Monthly surplus (shortfall) R 15,537.27 R 15,566.98 R 5,596.69 R 4,009.39 R 3,346.10 R 3,375.81 R 3,405.51 R 3,435.22 -R 4,825.07 R 5,804.63 R 5,834.34 R 5,864.05 Balance available month end R 12,472.29 R 26,039.27 R 29,635.95 R 30,645.35 R 30,991.44 R 31,367.25 R 31,772.76 R 32,207.98 R 24,382.91 R 26,187.54 R 28,021.88 R 29,885.93 Profit sharing amongst participants (each) 20 members R 100.00 R 100.00 R 150.00 R 150.00 R 150.00 R 150.00 R 150.00 R 150.00 R 200.00 R 200.00 R 200.00 R 200.00

93

Profit sharing total per month R 2,000.00 R 2,000.00 R 3,000.00 R 3,000.00 R 3,000.00 R 3,000.00 R 3,000.00 R 3,000.00 R 4,000.00 R 4,000.00 R 4,000.00 R 4,000.00 Balance in bank at month end R 10,472.29 R 24,039.27 R 26,635.95 R 27,645.35 R 27,991.44 R 28,367.25 R 28,772.76 R 29,207.98 R 20,382.91 R 22,187.54 R 24,021.88 R 25,885.93

94


2007



EXPENSES R 7,806.25 R 7,776.54 R 7,746.83 R 9,817.13 R 10,687.42 R 10,657.71 R 10,628.01 R 10,598.30 R 18,168.59 R 7,538.89 R 7,509.18 R 7,479.47 PRODUCTION LOAN - LAND BANK repayable over 36 months R 85,555.56 R 81,277.78 R 77,000.00 R 72,722.22 R 68,444.44 R 64,166.67 R 59,888.89 R 55,611.11 R 51,333.33 R 47,055.56 R 42,777.78 R 38,500.00

Total loans

CASH RECEIPTS Start-up funding (6 months) R 60,000.00







Operational costs






Loan redemption Monthly installment R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 Interest on loan (25%) R 594.14 R 564.43 R 534.72 R 505.02 R 475.31 R 445.60 R 415.90 R 386.19 R 356.48 R 326.77 R 297.07 R 267.36

Total Expenses R 7,806.25 R 7,776.54 R 7,746.83 R 9,817.13 R 10,687.42 R 10,657.71 R 10,628.01 R 10,598.30 R 18,168.59 R 7,538.89 R 7,509.18 R 7,479.47 Monthly surplus (shortfall) R 5,893.75 R 5,923.46 R 5,953.17 R 3,882.87 R 3,012.58 R 3,042.29 R 3,071.99 R 3,101.70 -R 4,468.59 R 6,161.11 R 6,190.82 R 6,220.53 Balance available month end R 31,779.68 R 33,703.14 R 35,656.31 R 34,539.18 R 32,551.76 R 30,594.05 R 28,666.04 R 26,767.74 R 17,299.15 R 17,460.26 R 17,651.08 R 17,871.61

95

Profit sharing amongst participants (each) 20 members R 200.00 R 200.00 R 250.00 R 250.00 R 250.00 R 250.00 R 250.00 R 250.00 R 300.00 R 300.00 R 300.00 R 300.00 Profit sharing total per month R 4,000.00 R 4,000.00 R 5,000.00 R 5,000.00 R 5,000.00 R 5,000.00 R 5,000.00 R 5,000.00 R 6,000.00 R 6,000.00 R 6,000.00 R 6,000.00 Balance in bank at month end R 27,779.68 R 29,703.14 R 30,656.31 R 29,539.18 R 27,551.76 R 25,594.05 R 23,666.04 R 21,767.74 R 11,299.15 R 11,460.26 R 11,651.08 R 11,871.61

96


2008



EXPENSES R 7,449.77 R 7,420.06 R 7,390.35 R 9,460.65 R 10,330.94 R 10,301.23 R 10,271.52 R 10,241.82 R 13,534.33 R 2,934.33 R 2,934.33 R 2,934.33 PRODUCTION LOAN - LAND BANK

repayable over 36 months R 34,222.22 R 29,944.44 R 25,666.67 R 21,388.89 R 17,111.11 R 12,833.33 R 8,555.56 R 4,277.78 R 0.00 R 0.00 R 0.00 R 0.00

Total loans

CASH RECEIPTS Start-up funding (6 months) R 60,000.00







RUNNING COSTS

Operational costs





Loan redemption Monthly installment R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 4,277.78 R 0.00 R 0.00 R 0.00 R 0.00 Interest on loan (25%) R 237.65 R 207.95 R 178.24 R 148.53 R 118.83 R 89.12 R 59.41 R 29.71 R 0.00 R 0.00 R 0.00 R 0.00

Total Expenses R 7,449.77 R 7,420.06 R 7,390.35 R 9,460.65 R 10,330.94 R 10,301.23 R 10,271.52 R 10,241.82 R 13,534.33 R 2,934.33 R 2,934.33 R 2,934.33 Monthly surplus (shortfall) R 6,250.23 R 6,279.94 R 6,309.65 R 4,239.35 R 3,369.06 R 3,398.77 R 3,428.48 R 3,458.18 R 165.67 R 10,765.67 R 10,765.67 R 10,765.67 Balance available month end R 18,121.85 R 18,401.79 R 18,711.44 R 16,950.79 R 14,319.85 R 11,718.62 R 9,147.10 R 6,605.28 R 770.94 R 11,536.61 R 15,302.28 R 19,067.94

97

Profit sharing amongst participants (each) 20 members R 300.00 R 300.00 R 300.00 R 300.00 R 300.00 R 300.00 R 300.00 R 300.00 R 0.00 R 350.00 R 350.00 R 350.00 Profit sharing total per month R 6,000.00 R 6,000.00 R 6,000.00 R 6,000.00 R 6,000.00 R 6,000.00 R 6,000.00 R 6,000.00 R 0.00 R 7,000.00 R 7,000.00 R 7,000.00 Balance in bank at month end R 12,121.85 R 12,401.79 R 12,711.44 R 10,950.79 R 8,319.85 R 5,718.62 R 3,147.10 R 605.28 R 770.94 R 4,536.61 R 8,302.28 R 12,067.94

98


2009

Month COMMENTS JAN FEB MAR APR MAY JUN JUL AUG

INCOME R 13,700.00 R 13,700.00 R 13,700.00 R 13,700.00 R 13,700.00 R 13,700.00 R 13,700.00 R 13,700.00

EXPENSES R 2,934.33 R 2,934.33 R 2,934.33 R 5,034.33 R 5,934.33 R 5,934.33 R 5,934.33 R 5,934.33

PRODUCTION LOAN - LAND BANK repayable over 36 months R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00

Total loans

CASH RECEIPTS

Start-up funding (6 months) R 60,000.00

Goat sales Numbers of males sold for slaughter per month 20 20 20 20 20 20 20 20

Average weight of goats sold = 30kg 30 30 30 30 30 30 30 30

Goats sold at R9.5/kg liveweight R 5,700.00 R 5,700.00 R 5,700.00 R 5,700.00 R 5,700.00 R 5,700.00 R 5,700.00 R 5,700.00

Numbers of doelings and does replaced to sell for slaughter or community 20 20 20 20 20 20 20 20

Doelings sold at R400 per animal R 8,000.00 R 8,000.00 R 8,000.00 R 8,000.00 R 8,000.00 R 8,000.00 R 8,000.00 R 8,000.00

TOTAL CASH RECEIPTS R 13,700.00 R 13,700.00 R 13,700.00 R 13,700.00 R 13,700.00 R 13,700.00 R 13,700.00 R 13,700.00

RUNNING COSTS

Operational costs Equipment, animal management tools, medication R 433.33 R 433.33 R 433.33 R 433.33 R 433.33 R 433.33 R 433.33 R 433.33

Administration costs Faxes, phones and transport R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 Animal feed (flushing, breeding supplementation) 0.25kg per animal R 2,100.00 R 3,000.00 R 3,000.00 R 3,000.00 R 3,000.00

Water and lights Farm R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00

Rental of property from Dept. Agriculture R 1.00 R 1.00 R 1.00 R 1.00 R 1.00 R 1.00 R 1.00 R 1.00

TOTAL RUNNING COSTS R 2,934.33 R 2,934.33 R 2,934.33 R 5,034.33 R 5,934.33 R 5,934.33 R 5,934.33 R 5,934.33

Loan redemption Monthly installment R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00

Interest on loan (25%) R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00

Total Expenses R 2,934.33 R 2,934.33 R 2,934.33 R 5,034.33 R 5,934.33 R 5,934.33 R 5,934.33 R 5,934.33

Monthly surplus (shortfall) R 10,765.67 R 10,765.67 R 10,765.67 R 8,665.67 R 7,765.67 R 7,765.67 R 7,765.67 R 7,765.67

Balance available month end R 22,833.61 R 26,599.28 R 30,364.94 R 32,030.61 R 31,796.28 R 31,561.94 R 31,327.61 R 31,093.28 Profit sharing amongst participants (each) 20 members R 350.00 R 350.00 R 350.00 R 400.00 R 400.00 R 400.00 R 400.00 R 400.00

Profit sharing total per month R 7,000.00 R 7,000.00 R 7,000.00 R 8,000.00 R 8,000.00 R 8,000.00 R 8,000.00 R 8,000.00

Balance in bank at month end R 15,833.61 R 19,599.28 R 23,364.94 R 24,030.61 R 23,796.28 R 23,561.94 R 23,327.61 R 23,093.28

99

Appendix

C Cash Flow Statements: Kw amhlanga Goat Meat

Processing Plant

100

Kwamhlanga Abattoir Processing Facility 2005

Month COMMENTS SEP OCT NOV DEC INCOME R 124,519.34 R 124,519.34 R 124,519.34 R 124,519.34 EXPENSES R 96,180.56 R 96,132.33 R 96,084.10 R 96,035.88 PRODUCTION LOAN - LAND BANK To purchase equipment and build processing facility R 250,000.00 R 243,055.56 R 236,111.11 R 229,166.67 Total loans repayable over 36 months R 250,000.00 CASH RECEIPTS Start-up funding 6 months R 120,000.00 R 20,000.00 R 20,000.00 R 20,000.00 R 20,000.00 Value-added to meat products at Kwamhlanga Abattoir Cabanossi R 58,739.65 R 58,739.65 R 58,739.65 R 58,739.65 Processed carcasses per month Salami R 12,953.09 R 12,953.09 R 12,953.09 R 12,953.09 Droe wors R 19,826.60 R 19,826.60 R 19,826.60 R 19,826.60 Whole carcasses per month Carcasses (15kg carcass @ R24.00/kg) R 7,200.00 R 7,200.00 R 7,200.00 R 7,200.00 Kits per month @ R22/kit Offal R 4,400.00 R 4,400.00 R 4,400.00 R 4,400.00 Skins per month @ R7/skin Skins R 1,400.00 R 1,400.00 R 1,400.00 R 1,400.00 TOTAL CASH RECEIPTS R 124,519.34 R 124,519.34 R 124,519.34 R 124,519.34 RUNNING COSTS Operational costs Spices and packaging R 12,000 R 12,000 R 12,000 R 12,000 Salaries Meat processors (8) R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 Water and lights Processing Centre R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 Rental of processing facility R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 Administration costs Faxes, phones and transport R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 Goat purchases Numbers of males bought for slaughter per month 0 0 0 0 Average weight of goats purchased = 30kg 30 30 30 30 At R12/kg liveweight R 0.00 R 0.00 R 0.00 R 0.00 Goat purchases Goats bought from other sources (10 per day) 200 200 200 200 Average weight of goats purchased = 30kg 30 30 30 30 At R10/kg liveweight R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 TOTAL RUNNING COSTS R 87,500.00 R 87,500.00 R 87,500.00 R 87,500.00 Loan redemption Monthly installment R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 Interest on loan (25%) R 1,736.11 R 1,687.89 R 1,639.66 R 1,591.44 Total Expenses R 96,180.56 R 96,132.33 R 96,084.10 R 96,035.88 Monthly surplus (shortfall) R 28,338.78 R 28,387.01 R 28,435.24 R 28,483.46 Balance available at month end R 28,338.78 R 56,725.79 R 85,161.03 R 113,644.49 Profit sharing amongst participants (each) 75 members R 0.00 R 0.00 R 0.00 R 1,500.00 Profit sharing total per month R 0.00 R 0.00 R 0.00 R 112,500.00 Balance in bank at month end R 28,338.78 R 56,725.79 R 85,161.03 R 1,144.49

101




To purchase equipment and build processing facility R 222,222.22 R 215,277.78 R 208,333.33 R 201,388.89 R 194,444.44 R 187,500.00 R 180,555.56 R 173,611.11 R 166,666.67 R 159,722.22 R 152,777.78 R 145,833.33


CASH RECEIPTS Start-up funding 6 months R 120,000.00 R 20,000.00 R 20,000.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 Value-added to meat products at Kwamhlanga Abattoir Cabanossi

R 99,204.75

R 99,204.75 R 99,204.75 R 99,204.75 R 99,204.75 R 99,204.75 R 99,204.75 R 99,204.75 R 78,319.54 R 78,319.54 R 78,319.54 R 78,319.54 Processed carcasses per month Salami

R 21,876.33 R 21,876.33 R 21,876.33 R 21,876.33 R 21,876.33 R 21,876.33 R 21,876.33 R 21,876.33 R 17,270.78 R 17,270.78 R 17,270.78 R 17,270.78

Droe wors R 33,484.92 R 33,484.92 R 33,484.92 R 33,484.92 R 33,484.92 R 33,484.92 R 33,484.92 R 33,484.92 R 26,435.46 R 26,435.46 R 26,435.46 R 26,435.46

Whole carcasses per month

Carcasses (15kg carcass @ R24.00/kg) R 7,200.00 R 7,200.00 R 7,200.00 R 7,200.00 R 7,200.00 R 7,200.00 R 7,200.00 R 7,200.00 R 7,200.00 R 7,200.00 R 7,200.00 R 7,200.00

Kits per month @ R22/kit Offal R 7,128.00 R 7,128.00 R 7,128.00 R 7,128.00 R 7,128.00 R 7,128.00 R 7,128.00 R 7,128.00 R 5,720.00 R 5,720.00 R 5,720.00 R 5,720.00 Skins per month @ R7/skin Skins R 2,268.00 R 2,268.00 R 2,268.00 R 2,268.00 R 2,268.00 R 2,268.00 R 2,268.00 R 2,268.00 R 1,820.00 R 1,820.00 R 1,820.00 R 1,820.00 TOTAL CASH RECEIPTS R 191,162.00 R 191,162.00 R 171,162.00 R 171,162.00 R 171,162.00 R 171,162.00 R 171,162.00 R 171,162.00 R 136,765.79 R 136,765.79 R 136,765.79 R 136,765.79 RUNNING COSTS

Operational costs Spices and packaging

R 18,000 R 18,000 R 18,000 R 18,000 R 18,000 R 18,000 R 18,000 R 18,000 R 15,000 R 15,000 R 15,000 R 15,000

Salaries Meat processors (8) R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 Water and lights Processing Centre R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 Rental of processing facility R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00


Goat purchases


Average weight of goats purchased = 30kg 30 30 30 30 30 30 30 30 30 30 30 30

At R12/kg liveweight R 44,640.00 R 44,640.00 R 44,640.00 R 44,640.00 R 44,640.00 R 44,640.00 R 44,640.00 R 44,640.00 R 21,600.00 R 21,600.00 R 21,600.00 R 21,600.00

Goat purchases

Goats bought from other sources (10 per day) 200 200 200 200 200 200 200 200 200 200 200 200


At R10/kg liveweight R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 TOTAL RUNNING COSTS R 138,140.00 R 138,140.00 R 138,140.00 R 138,140.00 R 138,140.00 R 138,140.00 R 138,140.00 R 138,140.00 R 112,100.00 R 112,100.00 R 112,100.00 R 112,100.00 Loan redemption Monthly installment R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 Interest on loan (25%) R 1,543.21 R 1,494.98 R 1,446.76 R 1,398.53 R 1,350.31 R 1,302.08 R 1,253.86 R 1,205.63 R 1,157.41 R 1,109.18 R 1,060.96 R 1,012.73 Total Expenses R 146,627.65 R 146,579.43 R 146,531.20 R 146,482.98 R 146,434.75 R 146,386.53 R 146,338.30 R 146,290.08 R 120,201.85 R 120,153.63 R 120,105.40 R 120,057.18 Monthly surplus (shortfall) R 44,534.34 R 44,582.57 R 24,630.79 R 24,679.02 R 24,727.24 R 24,775.47 R 24,823.69 R 24,871.92 R 16,563.94 R 16,612.16 R 16,660.39 R 16,708.61 Balance available at month end R 45,678.83 R 90,261.40 R 114,892.19 R 139,571.21 R 164,298.46 R 189,073.93 R 213,897.62 R 238,769.54 R 255,333.47 R 271,945.63 R 288,606.02 R 305,314.63

102

Profit sharing amongst participants (each) 75 members R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 4,000.00 Profit sharing total per month R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 300,000.00 Balance in bank at month end R 45,678.83 R 90,261.40 R 114,892.19 R 139,571.21 R 164,298.46 R 189,073.93 R 213,897.62 R 238,769.54 R 255,333.47 R 271,945.63 R 288,606.02 R 5,314.63

103




To purchase equipment and build processing facility R 138,888.89 R 131,944.44 R 125,000.00 R 118,055.56 R 111,111.11 R 104,166.67 R 97,222.22 R 90,277.78 R 83,333.33 R 76,388.89 R 69,444.44 R 62,500.00


CASH RECEIPTS Start-up funding 6 months R 120,000.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 Value-added to meat products at Kwamhlanga Abattoir Cabanossi R 103,447.06 R 103,447.06 R 103,447.06 R 103,447.06 R 103,447.06 R 103,447.06 R 103,447.06 R 103,447.06 R 78,319.54 R 78,319.54 R 78,319.54 R 78,319.54 Processed carcasses per month Salami R 22,811.83 R 22,811.83 R 22,811.83 R 22,811.83 R 22,811.83 R 22,811.83 R 22,811.83 R 22,811.83 R 17,270.78 R 17,270.78 R 17,270.78 R 17,270.78 Droe wors R 34,916.84 R 34,916.84 R 34,916.84 R 34,916.84 R 34,916.84 R 34,916.84 R 34,916.84 R 34,916.84 R 26,435.46 R 26,435.46 R 26,435.46 R 26,435.46 Whole carcasses per month


Kits per month @ R22/kit Offal R 7,414.00 R 7,414.00 R 7,414.00 R 7,414.00 R 7,414.00 R 7,414.00 R 7,414.00 R 7,414.00 R 5,720.00 R 5,720.00 R 5,720.00 R 5,720.00 Skins per month @ R7/skin Skins R 2,359.00 R 2,359.00 R 2,359.00 R 2,359.00 R 2,359.00 R 2,359.00 R 2,359.00 R 2,359.00 R 1,820.00 R 1,820.00 R 1,820.00 R 1,820.00 TOTAL CASH RECEIPTS R 178,148.73 R 178,148.73 R 178,148.73 R 178,148.73 R 178,148.73 R 178,148.73 R 178,148.73 R 178,148.73 R 136,765.79 R 136,765.79 R 136,765.79 R 136,765.79 RUNNING COSTS Operational costs Spices and packaging R 18,000 R 18,000 R 18,000 R 18,000 R 18,000 R 18,000 R 18,000 R 18,000 R 15,000 R 15,000 R 15,000 R 15,000 Salaries Meat processors (8) R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 Water and lights Processing Centre R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 Rental of processing facility R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00


Goat purchases




Goat purchases



At R10/kg liveweight R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 TOTAL RUNNING COSTS R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 112,100.00 R 112,100.00 R 112,100.00 R 112,100.00 Loan redemption Monthly installment R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 Interest on loan (25%) R 964.51 R 916.28 R 868.06 R 819.83 R 771.60 R 723.38 R 675.15 R 626.93 R 578.70 R 530.48 R 482.25 R 434.03 Total Expenses R 150,728.95 R 150,680.73 R 150,632.50 R 150,584.27 R 150,536.05 R 150,487.82 R 150,439.60 R 150,391.37 R 119,623.15 R 119,574.92 R 119,526.70 R 119,478.47 Monthly surplus R 27,419.78 R 27,468.00 R 27,516.23 R 27,564.45 R 27,612.68 R 27,660.90 R 27,709.13 R 27,757.35 R 17,142.64 R 17,190.86 R 17,239.09 R 17,287.31

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(shortfall) Balance available at month end R 32,734.41 R 60,202.41 R 87,718.64 R 115,283.09 R 142,895.77 R 170,556.67 R 198,265.80 R 226,023.15 R 243,165.79 R 260,356.65 R 277,595.74 R 294,883.06 Profit sharing amongst participants (each) 75 members R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 4,000.00 Profit sharing total per month R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 300,000.00 Balance in bank at month end R 32,734.41 R 60,202.41 R 87,718.64 R 115,283.09 R 142,895.77 R 170,556.67 R 198,265.80 R 226,023.15 R 243,165.79 R 260,356.65 R 277,595.74 -R 5,116.94

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To purchase equipment and build processing facility R 55,555.56 R 48,611.11 R 41,666.67 R 34,722.22 R 27,777.78 R 20,833.33 R 13,888.89 R 6,944.44 R 0.00 R 0.00 R 0.00 R 0.00


CASH RECEIPTS Start-up funding 6 months R 120,000.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 Value-added to meat products at Kwamhlanga Abattoir Cabanossi R 103,447.06 R 103,447.06 R 103,447.06 R 103,447.06 R 103,447.06 R 103,447.06 R 103,447.06 R 103,447.06 R 78,319.54 R 78,319.54 R 78,319.54 R 78,319.54 Processed carcasses per month Salami R 22,811.83 R 22,811.83 R 22,811.83 R 22,811.83 R 22,811.83 R 22,811.83 R 22,811.83 R 22,811.83 R 17,270.78 R 17,270.78 R 17,270.78 R 17,270.78 Droe wors R 34,916.84 R 34,916.84 R 34,916.84 R 34,916.84 R 34,916.84 R 34,916.84 R 34,916.84 R 34,916.84 R 26,435.46 R 26,435.46 R 26,435.46 R 26,435.46 Whole carcasses per month


Kits per month @ R22/kit Offal R 7,414.00 R 7,414.00 R 7,414.00 R 7,414.00 R 7,414.00 R 7,414.00 R 7,414.00 R 7,414.00 R 5,720.00 R 5,720.00 R 5,720.00 R 5,720.00 Skins per month @ R7/skin Skins R 2,359.00 R 2,359.00 R 2,359.00 R 2,359.00 R 2,359.00 R 2,359.00 R 2,359.00 R 2,359.00 R 1,820.00 R 1,820.00 R 1,820.00 R 1,820.00 TOTAL CASH RECEIPTS R 178,148.73 R 178,148.73 R 178,148.73 R 178,148.73 R 178,148.73 R 178,148.73 R 178,148.73 R 178,148.73 R 136,765.79 R 136,765.79 R 136,765.79 R 136,765.79 RUNNING COSTS Operational costs Spices and packaging R 18,000 R 18,000 R 18,000 R 18,000 R 18,000 R 18,000 R 18,000 R 18,000 R 15,000 R 15,000 R 15,000 R 15,000 Salaries Meat processors (8) R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 Water and lights Processing Centre R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 Rental of processing facility R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00


Goat purchases




Goat purchases



At R10/kg liveweight R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 TOTAL RUNNING COSTS R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 112,100.00 R 112,100.00 R 112,100.00 R 112,100.00 Loan redemption Monthly installment R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 6,944.44 R 0.00 R 0.00 R 0.00 Interest on loan (25%) R 385.80 R 337.58 R 289.35 R 241.13 R 192.90 R 144.68 R 96.45 R 48.23 R 0.00 R 0.00 R 0.00 R 0.00 Total Expenses R 150,150.25 R 150,102.02 R 150,053.80 R 150,005.57 R 149,957.35 R 149,909.12 R 149,860.90 R 149,812.67 R 119,044.44 R 112,100.00 R 112,100.00 R 112,100.00 Monthly surplus (shortfall) R 27,998.48 R 28,046.71 R 28,094.93 R 28,143.16 R 28,191.38 R 28,239.61 R 28,287.83 R 28,336.06 R 17,721.34 R 24,665.79 R 24,665.79 R 24,665.79 Balance available at month end R 22,881.54 R 50,928.24 R 79,023.17 R 107,166.33 R 135,357.71 R 163,597.32 R 191,885.15 R 220,221.21 R 237,942.55 R 262,608.34 R 287,274.12 R 311,939.91 Profit sharing amongst participants (each) 75 members R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 4,000.00

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Profit sharing total per month R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 300,000.00 Balance in bank at month end R 22,881.54 R 50,928.24 R 79,023.17 R 107,166.33 R 135,357.71 R 163,597.32 R 191,885.15 R 220,221.21 R 237,942.55 R 262,608.34 R 287,274.12 R 11,939.91

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Month COMMENTS JAN FEB MAR APR MAY JUN JUL AUG INCOME R 178,148.73 R 178,148.73 R 178,148.73 R 178,148.73 R 178,148.73 R 178,148.73 R 178,148.73 R 178,148.73 EXPENSES R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00

PRODUCTION LOAN - LAND BANK To purchase equipment and build processing facility R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00

Total loans repayable over 36 months CASH RECEIPTS Start-up funding 6 months R 120,000.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 Value-added to meat products at Kwamhlanga Abattoir Cabanossi R 103,447.06 R 103,447.06 R 103,447.06 R 103,447.06 R 103,447.06 R 103,447.06 R 103,447.06 R 103,447.06 Processed carcasses per month Salami R 22,811.83 R 22,811.83 R 22,811.83 R 22,811.83 R 22,811.83 R 22,811.83 R 22,811.83 R 22,811.83 Droe wors R 34,916.84 R 34,916.84 R 34,916.84 R 34,916.84 R 34,916.84 R 34,916.84 R 34,916.84 R 34,916.84 Whole carcasses per month Carcasses (15kg carcass @ R24.00/kg) R 7,200.00 R 7,200.00 R 7,200.00 R 7,200.00 R 7,200.00 R 7,200.00 R 7,200.00 R 7,200.00 Kits per month @ R22/kit Offal R 7,414.00 R 7,414.00 R 7,414.00 R 7,414.00 R 7,414.00 R 7,414.00 R 7,414.00 R 7,414.00 Skins per month @ R7/skin Skins R 2,359.00 R 2,359.00 R 2,359.00 R 2,359.00 R 2,359.00 R 2,359.00 R 2,359.00 R 2,359.00 TOTAL CASH RECEIPTS R 178,148.73 R 178,148.73 R 178,148.73 R 178,148.73 R 178,148.73 R 178,148.73 R 178,148.73 R 178,148.73 RUNNING COSTS Operational costs Spices and packaging R 18,000 R 18,000 R 18,000 R 18,000 R 18,000 R 18,000 R 18,000 R 18,000 Salaries Meat processors (8) R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 R 12,000.00 Water and lights Processing Centre R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 Rental of processing facility R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 R 1,000.00 Administration costs Faxes, phones and transport R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00 R 1,500.00

Goat purchases Numbers of males bought for slaughter per month 137 137 137 137 137 137 137 137

Average weight of goats purchased = 30kg 30 30 30 30 30 30 30 30 At R12/kg liveweight R 49,320.00 R 49,320.00 R 49,320.00 R 49,320.00 R 49,320.00 R 49,320.00 R 49,320.00 R 49,320.00 Goat purchases Goats bought from other sources (10 per day) 200 200 200 200 200 200 200 200 Average weight of goats purchased = 30kg 30 30 30 30 30 30 30 30 At R10/kg liveweight R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 R 60,000.00 TOTAL RUNNING COSTS R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 Loan redemption Monthly installment R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 Interest on loan (25%) R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 Total Expenses R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 R 142,820.00 Monthly surplus (shortfall) R 35,328.73 R 35,328.73 R 35,328.73 R 35,328.73 R 35,328.73 R 35,328.73 R 35,328.73 R 35,328.73 Balance available at month end R 47,268.64 R 82,597.36 R 117,926.09 R 153,254.82 R 188,583.55 R 223,912.27 R 259,241.00 R 294,569.73 Profit sharing amongst participants (each) 75 members R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 Profit sharing total per month R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 Balance in bank at month end R 47,268.64 R 82,597.36 R 117,926.09 R 153,254.82 R 188,583.55 R 223,912.27 R 259,241.00 R 294,569.73

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Appendix

D Layout plans Please find attached the layout plans of various infrastructure related items discussed in the document.

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Appendix

E Farm Hartebeestspruit

235 JR site visit notes Please find attached the notes taken during the site visit to the Hartebeestspruit 235 JR farm on the 20th of July 2005.

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Site Visit : Nkangala Goat Production Infrastructure

Date: 20 July 2005 Project Name: Nkangala Project Ward Name and Number: Ward 30 Councilor of Area: Mr Peter Mokone Directions to site: Training center, agriculture, rotational grazing R573- Moloto road from Kwaggafontein- turn right at the “Broonkhostspruit R/ Rustde Winter” turn-off Road Conditions to site: Moloto road R573 and turn-off-tarred roads Members of Nkangala Municipality present at site visit: Mr Cedric Nkuna (082) 4891778 Members of Local Municipality present at site visit: Mr Makhaya and Mr Boys Skosana Members of Department of Agriculture present at site visit: None Way point: Along road 65 & 66 & 68 top corner (at plot 378) N0. 70- Top at Gauteng Border No. 71

No. 73 - Back of Moloto Road Members of the goat production group present at site visit: None Others present at site visit and reasons for being present (what is their involvement?): None General Comments of site visit: - wetland type of area the road. - Culrets on R 567 (rust de Winter Road) - 8 = 1.8 x 1.8 - indication of lots of water, catchment dam 130m x 50m - Opposite Amakulu Nature Reserve (Gauteng) - Plot 378- Private land-neighboring land, need deeds to verify land - Electricity 400m - Extension of security of tenure Act regarding inhabitants of land. Ngotela family- 5 members - Graveyard land (50m x 50m fenced area)- Mothoa)names Mkwane) Goat Production Infrastructure

1. Is there any land or infrastructure available to the goat production project? No, old fences good dam (but may overflow)

Several good dams Average perimeter fence Three-phased power across the road (at top corner-point 70) 2. What land or infrastructure is available?

Several private houses 3. Who constructed the existing infrastructure?

Homesteads some fencing Ngotela family (5 people) 26 cattle, 29 sheep

4. Has anybody attempted to rehabilitate these structures (if in need of rehabilitation)? 5. How long ago were the structures constructed? Several dams, electric fencing (Gauteng side- between 70

(011) 8571000 on Gauteng bonnox en 1.2 m 2 strand electric wire

111

Elke 150m trekpaal en elke 3m dropper 6. Who has been assigned the responsibility to look after the structure in terms of maintenance and security? 7. Is there water at the allocated site or at the infrastructure? Has the water been tested to determine its quality?

Several dams, springs, culvets to divert water under highway vlei area 8. Is there a reticulation or bulk main supplying the area?

None 9. Is the water, supplied by the river, borehole or weir? If there is no water supply, where is the nearest water

source such as a river or any other supply? 10. Is there any electricity? 400 m from homesteads 11. What types of disposal systems are currently being used in the area to discard waste, pharmaceutical waste,

manure, bags etc? No litter but township boundary may have

12. How does the group discard goat carcasses or plan to discard carcasses? 13. Do the facilities have or require toilets?

None 14. Where is the nearest used borrow pit? How far is the borrow pit from the site?

Close by borrowpit 15. Does this area have a high crime problem?

Security is required 16. Would fencing be required? What is the length of the fencing required? How big is the area to be fenced? Yes, they say 64 ha, but the area looks much bigger. Just the area bridging the township is about 800

m + 17. Would a Security guard be required over-night for construction of a facility or during goat production and

housing? Yes

18. Does the area experience high vandalism of government-initiated projects? Must be fenced, would prefer electrified 19. Were there any problems experienced by the previous contractors or consultants in the area during

construction of the existing infrastructure? River, Bridge

20. What is the soil material like e.g. hard, intermediate or soft? Does the community have anything to report concerning this? Quarry for building sand/plaster sand

21. The existing infrastructure: Is it equipped with electricity, water? How far is it from a main road? On main road

22. What are some of the identifiable difficulties that have caused problems in terms of construction or designing of infrastructure in this area?

23. What is the condition of the road to the site e.g. Road width, drainage and terrain? 24. Is the Road accessible during the rainy season by a truck and other large vehicles? 25. What is the description and dimensions of the land, infrastructure and/or buildings already present at the site? 26. What is the size of the platform? 27. Are there any wetland that exists on the proposed site? 28. How was the land obtained? Who was involved (Land Affairs, Community Property Association)? Provide

contact details.

112

Appendix

F Co-operative farm visits

infrastructure notes Please find attached the notes taken during the site visits to the existing land available to the co-operative groups on the 19th of July 2005.

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Site Visit : Nkangala Goat Production Infrastructure Date: 19 July 2005 Project Name: KwaMahlanga Young farmers Co-operative (Van Dykspruit farm no. 386) Directions to site: From Kwaggafontein (R573) turn left at KwaMhlanga 4way stop, Pass stadium Right, turn right at Cullinan road; continue for 10 km, first farm on left for chicken farms Road Conditions to site: Good gravel road Members of Nkangala Municipality present at site visit: None Members of Local Municipality present at site visit: None Members of Department of Agriculture present at site visit: None Members of the goat production group present at site visit: Michael Mngomezulu (currently lives on the farm) Rose Masombuka Elizabeth Aphane Others present at site visit and reasons for being present (what is their involvement?): None General Comments of site visit: Reasonably maintained Mngomezulu family currently lives on the farm This farm is very dry, only relies on one borehole for source of water Few pigs are currently kept on the farm Goat Production Infrastructure Is there any land or infrastructure available to the goat production project? none

1. What land or infrastructure is available? Cattle handling facilities are available on the farm (crush pen0 2. Who constructed the existing infrastructure? Previous farm owner 3. Has anybody attempted to rehabilitate these structures (if in need of rehabilitation)? No 4. How long ago were the structures constructed? Not known 5. Who has been assigned the responsibility to look after the structure in terms of maintenance and security? No one except the current Mngomezulu family that live on the farm 6. Is there water at the allocated site or at the infrastructure? Has the water been tested to determine its

quality? Source of water only one borehole 7. Is there a reticulation or bulk main supplying the area? No 8. Is the water, supplied by the river, borehole or weir? If there is no water supply, where is the nearest water

source such as a river or any other supply? Borehole 9. Is there any electricity? No, no longer working 10. What types of disposal systems are currently being used in the area to discard waste, pharmaceutical

waste, manure, bags etc? Burning 11. How does the group discard goat carcasses or plan to discard carcasses? Burning 12. Do the facilities have or require toilets?

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No, there is a toilet in the house 13. Where is the nearest used borrow pit? How far is the borrow pit from the site? Not known 14. Does this area have a high crime problem? Would need security 15. Would fencing be required? What is the length of the fencing required? How big is the area to be fenced? There is fencing on the farm, might need to be renovated 16. Would a Security guard be required over-night for construction of a facility or during goat production and

housing? There are people living on the farm, but may be necessary to have a security 17. Does the area experience high vandalism of government-initiated projects? 18. Were there any problems experienced by the previous contractors or consultants in the area during

construction of the existing infrastructure? 19. What is the soil material like e.g. hard, intermediate or soft? Does the community have anything to report

concerning this? Hard 20. The existing infrastructure: Is it equipped with electricity, water? How far is it from a main road? No electricity Water- borehole, they use diesel pump water which is also used in the house The farm is 8 km from the main road to KwaMhlanga 21. What are some of the identifiable difficulties that have caused problems in terms of construction or

designing of infrastructure in this area? Not known 22. What is the condition of the road to the site e.g. Road width, drainage and terrain? Road about 8 m wide Drainage is good Terrain is flat 23. Is the Road accessible during the rainy season by a truck and other large vehicles? Yes 24. What is the description and dimensions of the land, infrastructure and/or buildings already present at the

site? Farm size is 441 ha Farm house has 10 rooms Shed is 7 feet wide 15 feet long-used as a garage for tractor Diesel tanks- two 25. What is the size of the platform? 26. Are there any wetland that exists on the proposed site? No 27. How was the land obtained? Who was involved (Land Affairs, Community Property Association)? Provide

contact details. Farm is leased from the Government

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Site Visit : Nkangala Goat Production Infrastructure Date: 19 July 2005 Project Name: KwaMhlanga Young Farmers Co-op Directions to site: R573 from Kwaggafontein, turn left a KwaMhlanga 4 way stop, take R568 Bronkhospruit road, pass stadium on right, proceed straight at next 4 way stop, cross bridge at 13.3 km and immediately turn right after 500 m, first farm on right. Road Conditions to site: Track, no road, but short and flat, not in bad condition Members of Nkangala Municipality present at site visit: none Members of Local Municipality present at site visit: none Members of Department of Agriculture present at site visit: Mr Jones Mahlangu: 082-4909484 Members of the goat production group present at site visit: Miss Rose Masombuka Miss Thulisile Aphane Others present at site visit and reasons for being present (what is their involvement?): none General Comments of site visit: This farm is currently used for cattle grazing and keeps few goats There are signs of overgrazing on this farm The infrastructure is very poorly maintained The electricity is no longer working Goat Production Infrastructure

1. Is there any land or infrastructure available to the goat production project? This is one of the three farms set aside by the co-op members for goat farming The size is not known, but it is a reasonable size Game type bush trees are dominant on this farm

2. What land or infrastructure is available? Farm Infrastructure is old, and poorly maintained, but not for goats

3. Who constructed the existing infrastructure? Previous farm owner

4. Has anybody attempted to rehabilitate these structures (if in need of rehabilitation)? No.

5. How long ago were the structures constructed? More than 10 years

6. Who has been assigned the responsibility to look after the structure in terms of maintenance and security? No body assigned in particular except current farm occupants

7. Is there water at the allocated site or at the infrastructure? Has the water been tested to determine its quality? The stream running across the farm is the only source of water water is test, stream is perennial, called Hartebeestspruit river

8. Is there a reticulation or bulk main supplying the area? 9. Is the water, supplied by the river, borehole or weir? If there is no water supply, where is the nearest water

source such as a river or any other supply? 10. Is there any electricity?

No 11. What types of disposal systems are currently being used in the area to discard waste, pharmaceutical

waste, manure, bags etc? No proper system in place, sometimes they burn or bury the carcasses

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12. How does the group discard goat carcasses or plan to discard carcasses? Burning 13. Do the facilities have or require toilets?

Toilets are inside the house, but there is no water to be able to use them No pits pit toilets are available Must water in order to use toilets inside the house

14. Where is the nearest used borrow pit? How far is the borrow pit from the site? Not known, very close the tarred road

15. Does this area have a high crime problem? Low crime rate

16. Would fencing be required? What is the length of the fencing required? How big is the area to be fenced? Yes, the fence must be renovated 17. Would a Security guard be required over-night for construction of a facility or during goat production and

housing? 18. Does the area experience high vandalism of government-initiated projects? 19. Were there any problems experienced by the previous contractors or consultants in the area during


concerning this? 21. The existing infrastructure: Is it equipped with electricity, water? How far is it from a main road? 22. What are some of the identifiable difficulties that have caused problems in terms of construction or

designing of infrastructure in this area? 23. What is the condition of the road to the site e.g. Road width, drainage and terrain?

The farm is approximately 700m from the main (R568-tarred road) 24. Is the Road accessible during the rainy season by a truck and other large vehicles? Yes 25. What is the description and dimensions of the land, infrastructure and/or buildings already present at the

site? Reservoir = 1.5 high 6.7 feet in diameter used to store water from the borehole Shed= 15 feet long 7 feet wide

26. What is the size of the platform? 27. Are there any wetland that exists on the proposed site? 28. How was the land obtained? Who was involved (Land Affairs, Community Property Association)? Provide

contact details. Land is leased from the Government. The details of the lease can be obtained Department of land affairs in Witbank or contact Mr Herold Skhosana (083) 355386 The lease agreement expired in 1997 and the occupants acquired letters from land affairs the allow them to occupy the farm, but they still need the renewed lease

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Site Visit : Nkangala Goat Production Infrastructure Date: 19 July 2005 Project Name: KwaMhlanga Young Farmers Co-op Directions to site: R573 from Kwaggafontein, turn left a KwaMhlanga 4 way stop, take R568 Bronkhospruit road, pass stadium on right, proceed straight at next 4 way stop, cross bridge at 13.3 km and immediately turn right after 550 m, second farm on right. Road Conditions to site: Track, no road, but short and flat, not in bad condition Members of Nkangala Municipality present at site visit: None Members of Local Municipality present at site visit: None Members of Department of Agriculture present at site visit: None Members of the goat production group present at site visit: Miss Rose Masombuka and Miss Thulisile Aphane Others present at site visit and reasons for being present (what is their involvement?): none General Comments of site visit: This farm is currently used for cattle grazing and keeps few goats There are signs of overgrazing on this farm The infrastructure is very poorly maintained The electricity is no longer working Goat Production Infrastructure

1. Is there any land or infrastructure available to the goat production project? There is no goat infrastructure on farm This farm is next to the farm no. 344 westwards One of the three farms set aside for goat farming by the project

2. What land or infrastructure is available? 3. Who constructed the existing infrastructure? 4. Has anybody attempted to rehabilitate these structures (if in need of rehabilitation)? 5. How long ago were the structures constructed? 6. Who has been assigned the responsibility to look after the structure in terms of maintenance and security? 7. Is there water at the allocated site or at the infrastructure? Has the water been tested to determine its

quality? The Hartebeestspruit stream is the source of water Far form the house approximately 700 m

8. Is there a reticulation or bulk main supplying the area? No

9. Is the water, supplied by the river, borehole or weir? If there is no water supply, where is the nearest water source such as a river or any other supply? River, approximately 700 m from the house, not tested

10. Is there any electricity? No, used to be, but no longer working

11. What types of disposal systems are currently being used in the area to discard waste, pharmaceutical waste, manure, bags etc? No disposal system in place.

12. How does the group discard goat carcasses or plan to discard carcasses? No goats present

13. Do the facilities have or require toilets? Yes

14. Where is the nearest used borrow pit? How far is the borrow pit from the site?

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15. Does this area have a high crime problem? 16. Would fencing be required? What is the length of the fencing required? How big is the area to be fenced?

Fencing must be renovated 17. Would a Security guard be required over-night for construction of a facility or during goat production and

housing? 18. Does the area experience high vandalism of government-initiated projects? 19. Were there any problems experienced by the previous contractors or consultants in the area during


concerning this? 21. The existing infrastructure: Is it equipped with electricity, water? How far is it from a main road?

No running water, no electricity and approximately 550 m from the main road 22. What are some of the identifiable difficulties that have caused problems in terms of construction or designing

of infrastructure in this area? Nothing particularly difficult except poorly maintained infrastructure. The farm is close to the main road

23. What is the condition of the road to the site e.g. Road width, drainage and terrain? The track is small , good terrain, road needs to be constructed

24. Is the Road accessible during the rainy season by a truck and other large vehicles? Yes

25. What is the description and dimensions of the land, infrastructure and/or buildings already present at the site? Drinking trough = 4 feet diameter 50cm high Reservoir (no water) = 12 feet diameter 1.6 m high Shed = 10 feet width 14 feet length- used to as a store house

26. What is the size of the platform? 27. Are there any wetland that exists on the proposed site?

Yes, but the wetland is mainly a stream that runs across the farm 28. How was the land obtained? Who was involved (Land Affairs, Community Property Association)? Provide

contact details. Land is leased from the Government. The details of the lease can be obtained Department of land affairs in Witbank or contact Mr Herold Skhosana (083) 355386 The lease agreement expired in 1997 and the occupants acquired letters from land affairs the allow them to occupy the farm, but they still need the renewed lease

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Appendix

G Kw amhlanga Abattoir site visit

notes Please find attached the notes taken during the site visit to the Kwamhlanga Abattoir on the 20th of July 2005.

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Site Visit : Nkangala Goat Production Infrastructure Date: 20 July 2005 Project Name: Kwamhlanga Abattoir Ward Name and Number: Ward 3 Directions to site: Cross Road KwaMhlanga, 3 Km turn right, at stadium turn right again hospital, 200 m before hospital turn right, tar surfaced road to hospital. Road Conditions to site: Surfaced Excellent Members of Nkangala Municipality present at site visit: Person leasing Abottoir, Pieter Nortje, Cedric Nkuna Members of Local Municipality present at site visit: Makhaya Msiza Members of Department of Agriculture present at site visit: Not present Members of the goat production group present at site visit: None Others present at site visit and reasons for being present (what is their involvement?): Peter Nortje, renting of abattoir from District Municipality General Comments of site visit: New abattoir, not operational, design and submit plans to Department of Agriculture Vet 100 Goats/day. Deboning and value added facility Goat Production Infrastructure Is there any land or infrastructure available to the goat production project? Yes 1. What land or infrastructure is available?

3-Species abattoir. New. 2. Who constructed the existing infrastructure?

KwaMhlanga Municipality 3. Has anybody attempted to rehabilitate these structures (if in need of rehabilitation)?

No, new 4. How long ago were the structures constructed?

Less than one year 5. Who has been assigned the responsibility to look after the structure in terms of maintenance and security?

Mr Phillip Makwasha, Pieter Nortje (Partners of Tortello Investments (PTY) LTD) 6. Is there water at the allocated site or at the infrastructure? Has the water been tested to determine its

quality? From Municipality, not tested, water problems, off between 8:00 and 18:00. Borehole required.

7. Is there a reticulation or bulk main supplying the area? Yes, but not reliable

8. Is the water, supplied by the river, borehole or weir? If there is no water supply, where is the nearest water source such as a river or any other supply? Borehole required

9. Is there any electricity? Yes, 3 phase. 50 kva. Too small, applied 75 kva for R80 000.00

10. What types of disposal systems are currently being used in the area to discard waste, pharmaceutical waste, manure, bags etc? Blood, tank to collected, treatment plant. Connected to the main sewer

11. How does the group discard goat carcasses or plan to discard carcasses? Condemned pit

12. Do the facilities have or require toilets? Yes, two toilets (male and female) and shower. Deboning required more?

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13. Where is the nearest used borrow pit? How far is the borrow pit from the site? Not required

14. Does this area have a high crime problem? Security fencing

15. Would fencing be required? What is the length of the fencing required? How big is the area to be fenced? No, already installed

16. Would a Security guard be required over-night for construction of a facility or during goat production and housing? Yes

17. Does the area experience high vandalism of government-initiated projects? Yes, security

18. Were there any problems experienced by the previous contractors or consultants in the area during construction of the existing infrastructure? Many problems

29. What is the soil material like e.g. hard, intermediate or soft? Does the community have anything to report concerning this?

Borrow pit available 30. The existing infrastructure: Is it equipped with electricity, water? How far is it from a main road? Yes 31. What are some of the identifiable difficulties that have caused problems in terms of construction or designing

of infrastructure in this area? 18 months after construction not yet first test slaughter 32. What is the condition of the road to the site e.g. Road width, drainage and terrain? Tar, stones on the parking area 33. Is the Road accessible during the rainy season by a truck and other large vehicles? Yes 34. What is the description and dimensions of the land, infrastructure and/or buildings already present at the

site? New, to be approved 35. What is the size of the platform? Good 50 m2 available and extension 36. Are there any wetland that exists on the proposed site? No 37. How was the land obtained? Who was involved (Land Affairs, Community Property Association)? Provide

contact details. Municipal land available

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Appendix

H Co-Operative Groups visit notes Please find attached the notes taken during the site visits to the various Co-operative Groups on the 18th, 19th and 20th of July 2005.

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SITE VISIT: NKANGALA GOAT PRODUCTION

AGRICULTURAL AND INSTITUTIONAL ASPECTS

1. GROUP DETAILS

Group Name (if any) Dr J S Moroka

Name and type of legal entity or institution (if existing)

Not registered

Number of project participants 22( 13 present at the meeting) Gender distribution Male: Female: Length of time that group has been formed From: The group start from May

2005 To: Name of Dept. of Agriculture official or DM or LM Coordinator or contact person or NGO and contact number that has been involved with the group in any way and contact details.

Mr Luca Mahlangu : he is still trying to assist the some of the group members to register as a co-op

Local Municipality of group J S Moroka Location or Ward of group Ward 7 Province Mpumalanga Date visited by surveyor 20/07/2005 Has this project started goat production in any way (yet)?

Yes No x

Number of goats owned N/A Number of male goats N/A Number of female goats N/A Do you have a group leader? Lindiwe Makuwa Do you have a bank account? N/A Bank account details:

Name of bank Name of account holder Branch name Branch number Account number

N/A

Do you have a person who is responsible to handle the financial matters? Provide their name and contact details

N/A

Are there people in the group whose sole income is derived from this groups’ activities and the sale of goats or goat products? How many people?

No, the group has not started producing goats yet

What number of individuals in the group have an alternative source of income?

5 people have alternative sources of income except from goat farming

Do you have access to land, or facilities? Do you own this land or facilities?

No

List of project beneficiaries

NAME ID NUMBER CONTACT TELEPHONE NUMBER

POSTAL ADDRESS Ward no

1 Letty T. Mashiyane 7510230748080 073-3440441 Box 75409 Ramza 7 2 Lesiah Mahlangu 6911010431080 073-7268389 Box 75598 Ramza 7 3 William Chiloane 8412235575080 082-9531231 Box 197 Siyabuswa 0472 7

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4 Sibongile Kokela 8202151208083 072-0438102 Box 209 Siyabuswa 0472 7 5 Buda Mashadi

Stephinia 7811300784082 084-6106727 Box 602 Emthambothini 0462 7

6 Thandi Sindane 7812140624082 084-4430252 Box 1063 Siyabuswa0472 7 7 Maria T. Mahlangu 6801050671085 082-9522208 Box 536 Siyabuswa 0472 7 8 Thlaka Catherine 8118020903083 072-0544897 Box 831 Siyabuswa 7 9 Skosana Sbongile 083-5449705 Box 0472 7 10 Lindiwe Makuwa 8102210923088 072-9180914 7504 Ramakgo 7 11 Zanele Mahlangu 8307190443086 073-6952106 Box 488 Mthambothini 7 12 Cynthia Maseko 7803100915081 073-4977211 Box 1711 Siyabuswa 0472 7 13 Kanyane Mampana 8312020369089 072-5684840 Box 75411 7

2. MARKET INFORMATION AND KNOWLEDGE

QUESTION Answers and comments about own observations

1. Where do you sell your goats? The would sell to traditional market when they start produce goats

2. What prices do you sell your goats for? R450.00 to R500.00 per live goat 3. Are you aware of any competitors in your area?

They are only aware of the speculator that can be potential competitors

4. Do people prefer your goats? Why? N/A 5. Have your customers indicated to you whether they would like different products from goats or other livestock or products?

N/A

3. TRAINING

Information required in terms of these categories:

Answers and comments about own observations (Type and length)

1. Goat production The group has knowledge acquired from the skills programe, but they feel that it is more theoretical, they would like more (preferably practical knowledge of goat production

2. General Management The group is confident that they can manage this business, but they do not have skills in business management. Therefore training in this regard is necessary

3. BOD training No BOD existing, organization of the group is still needed 4. Clerical They need training 5. Selling and planning expenses They need training 6. Other (e.g. construction):

4. PROJECT PARTICIPANT REQUIREMENTS

QUESTION: Followed by :Answers and comments about own observations 1. What are your wishes for a goat project? How should it look? Who is involved? What is the business of the project? Describe it in detail here>

Traditional market will be very good for this business because there are many customs in the area that need goats. In order to market the business properly, the group plans to distribute pamphlets around the are with goats for sale and prices for goats. Local radio stations such as (Ikwekwezi FM and KCRS Motee FM) Value adding is part of the part of the main activities of the business

The group would like to slaughter goats in an abattoir (not clear or decided where the abattoir is going to be located|)

Sell goat meat to places such as hospitals and restaurants This business will start with:

Buying of breeding goats Start to sell kids from those goats Also sell goats that can no longer be used for breeding

The business will generate income by doing the following things: Restaurant or catering- selling of goat meat and traditional food on the their facility Selling of live goats to the local traditional market and auction sales nearby

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Delivery of goats to clients if they need transport Leather tanning- skins will be bought from the farmers around and also use their own

skins , the group says that they will use local people who know how to tann leather in a traditional way .

Leather crafting- some members of the group (few) know how to make leather craft items and they are planning to make the following item

Poriyana- it is like a bibs for a baby It is worn by men as a adornment for the front (chest).

Sthimba- it is worn by women Like a skirt covering the back only

Lekgeso – similar to and underwear Worn by boys coming from initiation schools

Tjorholo – worn by married Ndebele women together with iSthimba to cover the front hence iSthimba only covers the back. Also like a skirt.

These products are in very strong demand in kwaNdebele people, some people can even rent them from others for special occasions When this business is well established they would like to start a milk goat operation. 2. Do you require infrastructure? Describe the infrastructure that you envisage here.

They need enough land to farm on, they do not have land to start this business Water and electricity on the land Office – with enough space for record keeping and administration Phone Space for clients Board room shelter for goats store room – to keep animal feed and keep tools restaurant- with kitchen and serving area for clients tractor for planting animal feeds implements and tools to cultivate and maintain the land goat handling facilities such as crush pens, pens and hospital pens tannery and store rooms for skins craft centre computer- have own website to market the company and store records small truck to deliver goats Bukkie with a fridge to deliver goat meat Generator to supply power in case electricity goes off 3. Do you require jobs on this project? Describe these jobs here and name the person who wants to do that job. Does this person have the skills or experience for this position?

1. Financial management 2. Lindiwe Makua – no skills, needs training 3. William Chiloane – no skills, needs training 4. Marketing Management 5. Thandi Sindane – no skills, needs training 6. Cynthia Maseko – no skills, needs training 7. General Management 8. Sbongile Kokela- no skills, needs training 9. Catherine Thlaka, no skills, needs training 10. Delivery / driver (live goats to clients) -Thandi Mashiyane –Code 10 drivers license 11. Delivery / driver (meat) - Lesiah Mahlangu - code 11 drivers license 12. Animal handling - Sbongile Kokela , learnt from skills program 13. Every one also work in the animal handling depending on the tasks allocated. 14. Secretary - Shady Mashadu- little experience 15. Cashier - Maria Mahlangu- has some experience 16. Leather crafting - Sbongile Skhosana – Experienced 17. -Lindiwe Makua- no experience

Restaurant -Thandi Sondane – not skilled Sbongile Kokela – not skilled

4. What training is required and for whom?

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REPORT POINT 3 FOR SKILLS REQUIRED IN THIS BUSINESS 5. Have you chosen a legal entity for your group? Has anyone assisted you to formalize this group in a legal entity? Have your received training in how to manage this legal entity? Have you developed a business plan for your operation? How will this project make money? How do you plan to sell your products? What assistance do you think is required in this regard?

Not chosen yet, but the group plans to register as Co-operative Suggested names for the business

1. Khayalembuzi co-op (House of goat) 2. Buhlebesintu co-op (Beauty of the nation) 3. Goat meat supply co-op 4. Kuvuswa ezivusaka co-op (Help those who help themselves) 5. Nameni co-op ( place of meat) 6. Zama-zama goat meat supply ( trying) 7. Kgtlopele co-op (going forward together) 8. Osizweni co-op (place of help 9. Masibambisane co-op (lets work together) 10. Sizanani co-op (help one another) 11. Imbuzi Co-op

5. Who will give you advice on how to run this business? Should the implementing agency arrange for any other people to help your project? Are there any businessmen or women in the surrounding area that can give advice or information or guidelines to this business? Do you think you will be able to run the project on your own, if not, who will help you?

1. Mr France Mojapelo- owns construction company and shops in the area of J S Moroka. Owner of Jikeleza store which was use a s a training venue. (082) 8571838 2. Mr Lucas Mahlangu: Dept of Agric (082) 4783692 3. Mr Johanness Mapaya: Business man

5. COMMUNITY INVOLVEMENT AND SUPPORT.


1. Do you think this business fits in well within the local community and its activities? Yes – market is huge, no many people doing it

2. Will the traditional leaders support this business? Yes 3. Will the community leaders support this business? Yes

4. Will the municipal government support and provide services to the business? Yes, buy not too sure

6. ADDITIONAL COMMENTS AND THE OVERALL OBSERVATIONS ON THE GROUP

Positive points:

This group is very willing to start this business as soon as possible. They want to start to generate income for

themselves. They also wan to create job opportunities for other people as well. They want to grow the business until it

is able to have other braches. What is good about this group is that they want to achieve a level of independency,

and run a business successfully.

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1. GROUP DETAILS

Group Name (if any) Kwaggafontein


Not registered (but have been planning to register)

Number of project participants 22 (11 attended the meeting)

Gender distribution Male: 4 Female: 7

Length of time that group has been formed From: since the start of goat skills training To:

Name of Dept. of Agriculture official or DM or LM Coordinator or contact person or NGO and contact number that has been involved with the group in any way and contact details.

Makhaya Msiza -Organizing the group

Local Municipality of group Thembisile

Location or Ward of group Come from different wards

Province Mpumalanga

Date visited by surveyor 18/ 07/2005

Has this project started goat production in any way (yet)?

Yes No

Number of goats owned NO

Number of male goats NO

Number of female goats NO

Do you have a group leader? Rosina Buta

Do you have a bank account? N/A

Bank account details: x Name of bank x Name of account holder x Branch name x Branch number x Account number

N/A


N/A


N/A

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N/A


Few have access to communal land. Some few members live close to a big

farm in Ward 29. The farm is not used for anything, can contact Sam Mahlangu 013-

9472551


NAME ID NUMBER CONTACT TELEPHONE

NUMBER

POSTAL ADDRESS

1 Samson Mahlangu 7802058660837 072-9325629 P.O. Box 230 Msindo, 0456 2 Josephine Mahlangu 8008230932084 072-2688134 P.O. Box 6651 Mpumalanga 0458 3 Zanela Mthembu 8408290508081 072-03941974 P.O. Box 38 Msindo 0456 4 Patricia Sbanyoni 8310180294089 073-1963300 P. O. Box 4459 Mpumalanga 0458 5 Mfana Makhathini 8503235344087 082-6732148 P. O. Box 3477 Mpumalanga 0458 6 Daniel Montong 6907035794080 073-356991 P.O. Box 201 Denelton 1030 7 Maria Mtsweni 8211010483084 072-7289617 P.O. Box 505 Msindo, 0456 8 Oupa Motong 7802286194081 073-2570626 P.O. Box 714 Danielton 1030 9 Rosina Buta 8007120726084 084-32511619 P.O. Box 551 Msindo 0456 10 Sara Makofane 8008160771082 072-7218342 P.O. Box 551 Msindo 0456 11 Sara Mtsweni 6810101369086 073-3851308 P. O. Box 1419 Mpumalanga



1. Where do you sell your goats? The group does not own goats at the moment.

When they start a goat business, they can sell to the traditional market.

2. What prices do you sell your goats for? Can sell at R600.00 depending on the market demand

3. Are you aware of any competitors in your area?

They are only aware of the spectators

4. Do people prefer your goats? Why? No goats are sold yet 5. Have your customers indicated to you whether they would like different products from goats or other livestock or products?

No goats sold yet

3. TRAINING



1. Goat production The members of this group have been trained in goat production during the skills program and they are very

confident about what they know so far. 2. General Management Training needed, no skills present 3. BOD training No BOD present, must be developed. 4. Clerical One person has some theory in clerical work 5. Selling and planning expenses No skills, they need training 6. Other (e.g. construction): They need some information about sourcing funding for

their business


QUESTION: Followed by :Answers and comments about own observations

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1. What are your wishes for a goat project? How should it look? Who is involved? What is the business of the project? Describe it in detail here>

This group intends to farm with meat goats and sell them live to abattoirs for slaughter. Some of the goats will be sold to the traditional market. If they can get goat slaughtering infrastructure (abattoir), they would like to slaughter their own goats and sell the meat to the market which for now is local traditional market. Income will also be generated through selling hides to a tannery and they also want to comb their goats and sell cashmere. 2. Do you require infrastructure? Describe the infrastructure that you envisage here.

The infrastructure that is required for this business is : Dipping tank Hospital pen Offices for administration store room – to store feeds and equipment Security office Sleeping places Transport to deliver goats

(This group has few idea of the required infrastructure, but, based on their knowledge, which some of them have no farming background, it is a good idea 3. Do you require jobs on this project? Describe these jobs here and name the person who wants to do that job. Does this person have the skills or experience for this position?

Marketing –Mfana Makhathini- no experience – needs training Sara Makofane – No skill – needs training Clark – Josephina Sbanyoni- no skill- needs training Goat management – Oupa Motong – goat management skills program

Maria Matsweni – goat management skills program Daniel Motong – goat management skills program Patricia Sbanyoni – goat management skills programme

4. What training is required and for whom? Training that is required by the group is for skills that involve:

Business Management Marketing Financial Management

Organization of a farming co-operative and the training of BOD 5. Have you chosen a legal entity for your group? Has anyone assisted you to formalize this group in a legal entity? Have your received training in how to manage this legal entity? Have you developed a business plan for your operation?How will this project make money? How do you plan to sell your products? What assistance do you think is required in this regard? Not registered yet but would like to register as a CC OR (PTY) LTD This group is not yet organized into a business entity. They are not very clear about how are they going to generate income from this type of business. They have only just come from goat skills training but institutional development is needed. 5. Who will give you advice on how to run this business? Should the implementing agency arrange for any other people to help your project? Are there any businessmen or women in the surrounding area that can give advice or information or guidelines to this business? Do you think you will be able to run

the project on your own, if not, who will help you? The people they would like to get help from are:

Scientific Roets (PTY) LTD Makhaya Msiza – Thembisile Municipality Department of Agriculture



1. Do you think this business fits in well within the local community and its activities? Yes

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2. Will the traditional leaders support this business? Yes 3. Will the community leaders support this business? Yes

4. Will the municipal government support and provide services to the business? Yes


Positive points: this type of business can work well in this area if more market can be identified. The members of this

group are reasonably passionate about the business although they are not very clear about it.

SUGGESTED PROJECT NAMES:

1. Together project

2. Sithembisile Project (we have promised)

3. Siphumelele (PTY) LTD (We have secceeded)

4. Sibambisene Project (We work together)

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1. GROUP DETAILS

Group Name (if any) KwaMhlanga Young Farmers Co-op


Co-op

Number of project participants 16 Gender distribution Male:10 Female: 6 Length of time that group has been formed From: Nov.

2004 To:


Mr Jones Mahlangu- Dept of Agriculture (083) 9658647. He helped in forming a co-operitive Kalahari Kid Co-op Mr Mihalis Louca (083)7345450

Local Municipality of group Thembisile Location or Ward of group Come from different word Province Mpumalanga Date visited by surveyor 19/ 07/2005 Has this project started goat production in any way (yet)?

Yes No: x

Number of goats owned NO Number of male goats NO Number of female goats NO Do you have a group leader? Sipho Mahlangu (Chair person)

Do you have a bank account? Yes Bank account details:

Name of bank Name of account holder Branch name Branch number Account number

FNB KwaMhlanga Young farmers Co-op

Bronkhostpruit


No income from the business yet


8 members are getting income from other sources


N/A


All members have access to land, they live on farms. Three farms have been set aside for

goat farming.


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NUMBER

POSTAL ADDRESS

1 Thandi Siluma 7910280306088 072-4011169 P. O. Box Bronkhorstpruit 1020 2 Michael Mngomezula 9312015326086 072-7780897 P.O. 825 Cullinana 1000 3 Paul Msiza 6804033160085 082-4256671 P.O. Box 1936 Empumalanga 0458 4 Rose Masombuka 8002100436086 072-0877739 P.o. Box 1936 Empumalanga 5 Ouma Aphane 8405200315086 013-9457821 P.o Box 1597 Empumalanga 0458 6 Amos Mthimunye 764113614085 072-1530773 Box 1364 Bronkhostpruit1020 7 Bhekumuzi Mahlangu 6903185752085 082-7975979 346 Ekandastria 1028 8 Chris Mahlangu 6908315516086 072-6689804 Box 1406 Bronkhostpruit 1020 9 Lota Moeti 6806045828088 073-3668985 248 Bronkhostpruit 1020 10 Sibusiso Masombuka 8305115966082 072-0877739 Box 1936 Empumalanga 11 Elizabeth Aphane 7911210348083 0734360840 Box 1597 Empumalanga 12 Maria Masimula 13 Elizabeth Masimula 14 David Masimula 15 Sammy Mahlangu



1. Where do you sell your goats? Currently , few individual members own goats that they

sell to traditional market They will sell most of their goat to Kalahari Kid

2. What prices do you sell your goats for? R600 to R700 For the one that are sold to the traditional market

3. Are you aware of any competitors in your area? Individual farmers in the area 4. Do people prefer your goats? Why? They fatten their goat and therefore customers like

them 5. Have your customers indicated to you whether they would like different products from goats or other livestock or products?

They say their prices are affordable

3. TRAINING



1. Goat production They have knowledge from skills program, but they would like to get a full learnership

2. General Management They need training because they do not have knowledge about this

3. BOD training There was no BOD training given to them 4. Clerical Some individuals have the skills, other members are also

interested to get training in this field 5. Selling and planning expenses No skills, need training 6. Other (e.g. construction): They need training in book keeping and business management



The co-op is going to breed goats and supply Kalahari Kid (KKC). They have a contract to supply KKC with their goats. According to the contract farmers have to supply a certain number of goats to the KKC. The Co-op also wants to focus on other livestock – pigs (busy with business plan), beef (nothing

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happening yet), Poultry (individuals are already poultry farmers, but the co-op has not started anything), Crops (nothing happening at the co-op, but individually some are already producing) They will be getting Boer goats from Kalahari Kid to start off breeding. Monty will be made through: selling goats to KKC, Old goats to local traditional market, and auctions 2. Do you require infrastructure? Describe the infrastructure that you envisage here. They are currently leasing farms Three farms are set aside for this business No goat infrastructure. They need: fencing, kraal or shed, dip tank, crushes, hospital pens 3. Do you require jobs on this project? Describe these jobs here and name the person who wants to do that job. Does this person have the skills or experience for this position? 1. Goat management – All group members will be doing this, but they have not yet decided how they will do this 2. Financial management – Chris Mahlangu (Certificate in business studies), but needs more training 3. Marketing – Paul Msiza – No skills – Thandi – No skills 4. Book keeping – Rose Mosuubike – N4 Assist Manager – 1 year (but needs more knowledge on bookkeeping) 5. General management – No training undergone 4. What training is required and for whom? 5. Have you chosen a legal entity for your group? Has anyone assisted you to formalize this group in a legal entity? Have your received training in how to manage this legal entity? Have you developed a business plan for your operation? How will this project make money? How do you plan to sell your products? What assistance do you think is required in this regard? No assistance or guidance has been provided to this Co-op. But * Teboro – Northern Cape Dept of Agriculture – assisted in terms of teaching the group about forming a Co-op (073) 2758200 * Jones Mahlanga – Assisted with information to the Co-op * However, no formal training has been given on how to manage the business * The business plan that was developed – they were helped by Jones Mahlangu, submitted to Dept. Agriculture – but nothing has happened yet * the group needs funding to start the business (still waiting for Dept. of agriculture to fund the business) 6. Who will give you advice on how to run this business? Should the implementing agency arrange for any other people to help your project? Are there any businessmen or women in the surrounding area that can give advice or information or guidelines to this business? Do you think you will be able to run the project on your own, if not, who will help you? Kalahari Kid – will provide all the needs of the business (according to the KKC representative present at the meeting) But, the group mentioned people like Jones and another Dept. of Agriculture person


QUESTION Answers and comments about own

observations

1. Do you think this business fits in well within the local

community and its activities? Yes

2. Will the traditional leaders support this business? Yes

3. Will the community leaders support this business? Yes

4. Will the municipal government support and provide

services to the business?

Yes, the goat business was launched by the

minister


Positive points:

This group is very passionate. They are all farmers. They need help to start the business.

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1. GROUP DETAILS

Group Name (if any) KwaMhlanga Group: not registered.


N/A Would like to register as a co-op

Number of project participants 15 Gender distribution Male: 8 Female:7 Length of time that group has been formed From: May

2005 To:


Makhaya Msiza: Thembisile Municipality (084) 4721443. He has assisted in identifying the learners for Goat Skills program which are now members of this group

Local Municipality of group Thembisile Location or Ward of group Province Mpumalanga Date visited by surveyor 19 July 2005 Has this project started goat production in any way (yet)?

Yes No:x

Number of goats owned N/A

Number of male goats N/A

Number of female goats N/A

Do you have a group leader? N/A

Do you have a bank account? N/A

Bank account details: Name of bank Name of account holder Branch name Branch number Account number

N/A


N/A


No, this group has not done anything yet


N/A


N/A

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NUMBER

POSTAL ADDRESS

1 Daphney Masango 850813912086 084-9617938 2440 KwaMhlanga 1022 3 2 Olga Mahlangu 8308160902085 073-1469422 926 KwaMhlanga 1022 3 3 Ephraim Khorombi 7309055668089 076-1709956 P.O. Box 714 KwaMhlanga 1022 3 4 Jerry T. Mahlangu 7707315183080 P.O. Box 926 KwaMhlanga 1022 3 5 Themba Mahlangu 083-6439293 P.O. Box 1072 KwaMhlanga 1022 3 6 Johannes Mabena 7506095930086 083-5971666 P.O. Box 1026 KwaMhlanga 1022 3 7 Enos Masilela 8004075680086 072-0284048 P. O. Box 3948 Empumalanga 0458 3 8 Dion Motshweni 7409246213082 073-2801799 P.O. Box 1566 Ekangala 1021 3 9 Josephine Makuwa 8304110344080 703-8356645 P.O. Box 1277 Kwaggafontein 19 10 Gladston Mahlangu 8005175259082 072-9400348 P. O. Box 742 KwaMhlanga 1022 3 11 Vusi Magagula 8202135486080 072-9400398 P. O. Box 67 KwaMhlanga 3 12 Maureen Mahlangu 7710040279082 013-9473194 P. O. Box 7421 KwaMhlanga 1022 3



1. Where do you sell your goats? No goats are sold at the moment, but should they start to grow goats, they would supply markets

such as Kalahari Kid and traditional market 2. What prices do you sell your goats for? They will sell their goats for R550.00 and upwards

for old goats depending on live weight 3. Are you aware of any competitors in your area? Not aware of any competitors 4. Do people prefer your goats? Why? N/A 5. Have your customers indicated to you whether they would like different products from goats or other livestock or products?

N/A

3. TRAINING



1. Goat production Already have knowledge about goat production form goat skills programme, but would need practical experience

2. General Management No knowledge- need training 3. BOD training No BOD existing- need � raining 4. Clerical No skill- need training 5. Selling and planning expenses Few individuals do have some knowledge, but training is

required 6. Other (e.g. construction): The group would like to get training forming a co-operative,

meat processing training and exposure to practical farming



This group intends to start a business in goat farming that will: 1. Source breeding animals 2. Grow and fatten kids for slaughter 3. Sell fattened kids to places such as

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- Kalahari Kid - Any abattoir that can slaughter goats (not known for now) - Traditional market

4. Sell skins and possibly, also form a leather craft center that will make and sell leather craft products. 5. The group wants to provide practical training on their facility to other people for people who want to learn

about goat farming. Fees will be charged for proving this training. 6. The business will have a tourist facility on the facility to sell traditional meals, goat meat products and

sell leather craft products 7. They also plan to buy kids from other goat producers and together some of their own- fatten them in a

feedlot - send them for a show at KwaMhlanga, Nelspruit and Delmas shows - this will market their goats 8. When this business is well developed, they will need to take insurance for their

Property. 2. Do you require infrastructure? Describe the infrastructure that you envisage here.

1. Land is needed for this business 2. Handling facilities - Crush pen - Camps - Sheds - Dipping facilities 3. Vehicle for transportation of goats (need a small truck) 4. Two bakkies for feeds and marketing 5. Tractor for plaghuing and planting of animal feeds such as Lucerne which, if it is in excess, can be

sold to other farmers. 6. Planting implements 7. Fencing 8. Water supply such as bore hole or a dam 9. Electricity 10. Offices 11. House that can accommodate 10 people this will accommodate people that will be working at that

time on the farm. 12. Sprinkler irrigation system for Lucerne fields.

3. Do you require jobs on this project? Describe these jobs here and name the person who wants to do that job. Does this person have the skills or experience for this position?

1. Marketing – Vusi Magagula – need training - Dephney Masango- need training - Themba Mahlangu – need training - Gladstone Mahlangu – need training 2. Animal handling and management – This will be allocated to all members from time to time. 3. General Management – Jerry Mahlangu – need training - Maureen Mahlangu – need training - Themba Mahlangu – need training - Josephine Makua – need training

Financial Management – Dion Mtsweni – Certificate in Cultural Management (UNISA) 4. Book keeping and administration – Olga Mahlangu- need training - Enos Masimula

6. Secretary – Olga Mahlangu – need training 4. What training is required and for whom?

a. Marketing – Vusi Magagula - Themba Mahlangu - Gladston Mahlangu b. General management – Maureen Mahlangu - Themba Mahlangu - Josephine Makua - Jerry Mahlangu c. Administration and book keeping – Enos Masilela - Olga Mahlangu - Depheney Masango

5. Have you chosen a legal entity for your group? Has anyone assisted you to formalize this group in a legal

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entity? Have your received training in how to manage this legal entity? Have you developed a business plan for your operation? How will this project make money? How do you plan to sell your products? What assistance do you think is required in this regard? The group has now formed a legal entity yet and no business plan has been developed yet. This group has only received training in goat production which was done by Scientific Roets (PTY) LTD. Currently the group has ideas that have not been captured into a form of a business plan, but they are intending to proceed to level of being a legal entity. 6. Who will give you advice on how to run this business? Should the implementing agency arrange for any other people to help your project? Are there any businessmen or women in the surrounding area that can give advice or information or guidelines to this business? Do you think you will be able to run the project on your own, if not,

who will help you? 1. Jones Mahlangu – Department of Agriculture 2. Makhaya Msiza – Thembisile Municipality 3. Marlyn von Bekstroom- Owner of TEE TEE DAIRY has promised to some individuals that if

they start a goat business she can help them.


QUESTION Answers and comments about own observations 1. Do you think this business fits in well within the local community and its activities? Yes

2. Will the traditional leaders support this business? Yes

3. Will the community leaders support this business? Yes (they were also present during hand over of the land)

4. Will the municipal government support and provide services to the business? Yes


Positive points: This is a very enthusiastic group of young people. Young women in this group have good business

ideas and are very active.

Negative points:

Transport to the farm may be the a problem This group is not yet organized properly, but good potential exists in these young people

Documents

Feasibility Study and Business Plan – Nkangala Goat Project