BUSINESS PLAN

CLIFTON FARM

DEPARTMENT PF RIRAL DEVELOPMENT AND AGRARIAN REFORM CHRIS HANI

CONTACT PERSON:
GT MDAKA
TSOMO VALLEY
ELLIOT
CELL NO: 073 791 2565
TABLE OF CONTENT

1. Project identification 3
2. Executive summary 3
3. Background 4
4. Governance 4
5. Implementation strategy 5
5.1. Technical costs and benefits 5
5.1.1. Training required 5
5.1.2. Employment 5
5.2. Budget 5
5.2.1. Overall budget by pillars 5
5.3. Beneficiaries list 6
5.4. Other funding source 6
5.5. Cash flow (expenditure pattern) 6
5.6. Implementation plan (work breakdown) 6
5.7. Strategic impact and sustainability (cost benefit analysis) 7
5.8. Resources 7
5.9. Economic viability 7
5.10. Reporting 7
5.11. Monitoring and evaluation 7
5.12. Assumptions and risks 7
6. Swot analysis 7
7. Production plan 08
8. Marketing plan 09
9. Funding plan 10
9.1. Discussion and recommendation 10
9.2. Declaration 10
10. Approval 11
11. Annexture 12
Casp business plan framework

1. PROJECT IDENTIFICATION

Name of province Eastern Cape

Name of project Clifton Farm
Type of project Mixed Farming
Main deliverable Livestock Production, Crops
Start date
End date
Type of beneficiaries Private
District municipality Chris Hani
Local municipality Sakhisizwe
Specific location Tsomo Valley
Nearest business centre/town Elliot
Land classification LRAD, commonage etc Private
Project leader –beneficiaries GT Mdaka
Contact details-beneficiaries 073 791 2565
Position-beneficiaries Owner

2. EXECUTIVE SUMMARY

History/origin of the project

The farm owner is involved in mixed farming business that deals with both livestock and crop production
specializing with maize. The farm has divided into two (2) sections; section 1 is 258 HA and divided into
five (5) camps and section 2 is 391 divided into seven (7) camps. There is a perennial river called Repis
River crossing along 3 camps and the fourth camp is dry. The infrastructure that they need will play a
vital role for the improvement of production and the prevention of animal diseases. Clifton Farm is a
private family farm started in 1996 and currently they are 7 beneficiaries. The farmer is also registered
under Ikhephu Secondary co-operative. The farmer is looking forward to produce good quality of
livestock and crop taking into consideration proper veld management
3. BACKGROUND

The name of business is Clifton Farm. The business is situated at 30km from Elliot along Tsomo valley.
The co-ordinates for the business are and it is ward 07. The distance
between access road and the project is 3 km and from the electrical pole is 5m. the main activity of the
farm is crop production specialized with maize, livestock production, and wool production and feed. The
size of the land is 507HA, 57 breeding stock with calves, 89 sheep. The main objective of the famers is
the improvement of the farming infrastructure for sustainability and profitability of the farming business
enterprise. The provision of the above will assist the farmer in promoting animal health, improving the
quality of marketable animal, restrict animal losses due to diseases, and assist with the marketable of
animals, improving the overall economic viability of all farms.

TIME FRAMES: the farmer is already in production under bad condition with no equipment such as
centre pivot, so in need of the desired facility as soon as possible

Cost/Budget- the project has been budgeted an amount of R3 848 573.00 for required infrastructure for
the 2020/21 financial year

Community involvement/Stakeholders

Name of the group /Organization Role to play

Dept. of rural development and agrarian reform  Compile project business plan
 Provide technical advisory services
 Provide agricultural infrastructure

4. GOVERNANCE

Mr. GT Mdaka as the chairperson of the farm plays a provital role in managing the business.
5. IMPLEMANTATION STRATEGY
5.1. Technical costs and benefits

The farmers can manage the level of technology that is going to be implemented in the business. Have
extensive in cattle and sheep farming, having been exposed and involved in it in their youth. The
business will use labour intensive methods of production. The shearing of sheep, sorting and classing of
wool, dosing, dehorning and harvesting are performed by employing labour . the partly how the project
will contribute to job creation. Those involved will be capacitated by being exposed to the latest
technology through training courses, demonstrations and workshops on all aspects of sheep and cattle
production. In addition to technical skills, those associated with the project will capacitated on such
important fields as record keeping and general business management. The business and the
infrastructure can be maintained locally

5.1.1. Training requirements – Veld condition management, stock deseases and

management, calibrating and business management
5.1.2. Employment – Clifton farm employed 4 permanent workers. During shearing,
wool sorting, dehorning, dipping and harvesting, they are employing 20 casual
people from the community
5.2. BUDGET

CAPITAL COSTS
ITEM COST
Handling facilities
Storage shed
Massey ferguson 6712 4x4
Massey ferguson 4 ROW planter
Claas rolant 340 round baler net and twine
BP 7 Tine Ripper
TOTAL
5.3. BENEFICIARY LIST

Dry land GIS GIS

farming Coordinate Coordinate Project Project
= D or 1latitude 2latitude Leader Leader
Project Irrigated Village/Location (south) (East) name & Mobile No of No of No of No of
name farming (decimal (decimal Surname or females males yout disabled
=1 degrees – degrees – Landline h
xx.xxxx) xx.xxxx) number
Clifton D Tsomo valley 3117’06’S 2733’36’E GT. 073 791
farm Mdaka 2565

5.4. Other funding sources eg Provincial top up, Donor etc.

 There are no other funding sources expected.
5.5. Implementation plan (work Breakdown)
The implementation of the project will start as soon as funds become available for the provision of the
needed infrastructure. This is expected to be in the 2020/21 financial year. Following the prescribed
procurement process, construction activities will commence as outlined below.

CASP IMPLEMENTATION PLAN/WORK BREAKDOWN.

ACTIVITY MEANS OF OUTPUTS TIME FRAMES BY WHOM
VERIFICATION
Community liason Start, completion Community and April – June 2020 Local extension
dates of work other stakeholders office
done aware of how the
project will be
rolled out
Contractor site Start, completion A contractor’s site July – Sept 2020 Service provider
establishment and dates of work office established
requirements done
Structure & Start, completion Infrastructure that July - Sept 2020 Service provider
equipments dates of work is approved
done
Training Start, completion Skilled farmers Oct – Dec 2020 Farmes; local
dates of work and community extension office to
done members on organize
aspect of dosing,
vaccination and
wool production
5.6. STRATEGIC IMPACT AND SUSTAINABILITY
The project will have a positive impact since it will provide more jobs and therefore contribute to the
fight against poverty
No adverse effects on health are expected from the business. The famers are already in production and
the increased production expected will be associated with higher income earned by farmers, thereby
making them better to afford health care
5.7. RESOUCES
The size of land is 649HA and is enough for proposed infrastructure. Currently there is an old building
with old equipments. The farm areas have sufficient grazing land
5.8. ECONOMIC VIABILITY
It is anticipated that the modern facility to be provided will help improve both the quantity and the
quality of production. Although they might possibly not achieve R574.55 per SSU, they will certainly get
more income than before
5.9. REPORTING
Reports on progress of the association will be continuous and carried out by the steering committee
with assistance of agricultural development technicians, monitoring and evaluation officer, project
coordinator and the district agricultural economist where and when it is necessary
5.10. MONITORING AND EVALUATION
Monitoring and evaluation as an on-going process will be done by the association steering committee
together with their agricultural development technician, project coordinator, monitoring and evaluation
specialist and the district agricultural economist where necessary
5.11. ASSUMPTIONS AND RISKS
Risk analysis
Event risk or disease outbreak: There is a risk of outbreak of disease that could adversely affect the
livestock production. If proper vaccination programmers are not followed the project could suffer major
financial losses. It is important that proper vaccination programme is followed. The vaccination will
minimize the threat of diseases. Where necessary deworming of livestock should be carried out
regularly. It will also be crucial for personnel handling the animals to take precautions so as to avoid
animal diseases that affect or can be transferred to humans (or what is commonly referred to as
Zoonose). They include diseases such as tuberculosis which is mostly transferred through drinking raw
milk. Other possible infection include helminth infection that may involve animals and humans in
alternative stages of a parasitic lifecycle such as tapeworms.

6. SWOT ANALYSIS
The SWOT analysis is a summary of the external and internal environment analysis conducted in the
previous sections. It deduce the key strength, weakness, opportunities and threats surrounding the
association
Strength
 The beneficiaries of the business has been exposed to farming practice for very long time
 The business management and marketing skills is an advantage
 The availability of land as a resource
Weakness:
 Unsustainable management of natural resources, resulting in land degradation
 The current challenge in terms of sourcing and accessing additional funding
 The farmers will need to install management information systems, accounting information
systems and performance management system amongst others
Opportunities:
 Significant job creation in the business
 Skills to previously disadvantage individuals
 The existence of financial and non-financial support for small, medium and micro enterprises
as results of the existence of agencies and institutions such as small enterprise development
agency, national youth development agency, Khula and many others.
 The possibility to upgrade the skills, competencies and knowledge of the workforce as a result of
Agri SETA and other Agricultural related institutions.
 The potential to access funds from Agricultural support programs such as CASP as well as other
broad institution.

Threats

 Unpredictable weather patterns due to global warming.

 Crop failure
 The threat from direct and indirect competitors
 There is a potential threat in terms of livestock theft. The business will have to invest in security
measures
 The threat from animal related diseases, related to sheep as well as those could potentially be
passed on to humans

7. Production plan

The farmers are keeping their animals as individuals using available grazing lands. They use
supplementary feeding on an individual basis. Other than that, they follow dosing and vaccination
programs as advised by their local agricultural advisors. The farmers are keeping 89 sheep and 57 cattle.
The sheep are sheared once a year. With the project having been granted the assistance as requested in
this business plan, the farmers are hoping to increase quantity and quality of their production.

MAIZE PRODUCTION

Purpose: to produce maize for selling as processed product and livestock feed.

Objective: to produce maize required in Chris Hani suitable resources

Plant Population: 4000/ha

Target yield : 5tons/ha

Input cost/ha : R6 094.49

Mechanization costs/ha: R3 584.00

Total production costs: R9 678.49

Table 1: Inputs costs per Ha

ITEM DESCRIPTION QUANTITY AMOUNT

Seed PAN 6R680R or DKC 7376 1 x 12.5 kg R2 121.20
Herbicide Glyphosate 1x3L R313.69
Pesticide Cypermethrin 1 x 0.15 L R22.00
Fungicide Azoxystrobin 1 x 400 mL R68.00
Fertilizer 3:2:1 (30) 5 x 50 kg R2 086.00
Fertilizer LAN 28% 4 x 50 kg R1 483.60
Input costs R6 094.49

Table 2: Mechanization costs per Ha

ACTIVITY MODE OF PERFORMANCE EXPECTED COST PER HECTARE

Ploughing Tractor drawn plough R985.00
Discing tractor R750.00
Planting Tractor drawn planter R700.00
Post plant herbicide Boom sprayer R383.00
Insecticide and Boom sprayer R383.00
fungicide spray
Top dressing Spreader R383.00
Mechanization cost/ha R3 584.00

8. MARKETING PLAN

The farm is a mixed farming business. The farming produce is mostly sold to the around Sakhisizwe local
municipality. Livestock which includes cattle and sheep are sold to Andrews’ abattoir whereby weaners
start at Elliot feedlot then to the abattoir, Cornish abattoir and local.

The beef industry has dropped in the past moths. More cattle entered the feeding scene due to non-
traditional buyers and this increased demand volume. Gracing conditions have been harsh in the last 15
to 18 months in the Northern corner of the Eastern Cape due to drought resulting in the increased
volume of GRADE C quality beef as farmers were selling stock in defiance but it’s on its way to recovery
creating room for more stock availability for the next 3 to five years. The weaner calf price has also been
increasing over the years. However, the carcass price has been ranging above the weaner price and that
could be helpful to the farmer in the long run by bridging into keeping the livestock to maturity.

The information above means that the existing competition is not intensive amongst local producers as
SA produces less beef than required. Therefore, this presents a great opportunity for the commodity
group to exploit opportunities that are available in beef industry, especial for the beef produced from
free range carcasses. However, the imports may bring some competition. Further, the commodity group
is prepared to consider the niche market when it comes to be effectively competitive. There will also be
a closer look on cost management, timing of market-storage facilities and also grading & standardization
so as to make sure that the products or services (if any) could be rendered affectively to customers.

After the cattle have given birth, the calves will be reared and sold at twelve to eighteen months old as
weaners or young oxen or bull calves. The marketing strategy will be simple and based on minimization
of the marketing costs and reduction of risks to the business. Every marketing strategy will be simple
and based on minimization of marketing costs and reduction of risks to the business. Every marketing
effort will be geared towards winning new customers every day.

Wool is traded either through auctions or by private treaty, with the largest percentage of the national
clip being sold through the auction system. Wool auctions, coordinated by the South African Wool
Exchange, are centralized in Port Elizabeth and occur once a week during the wool-selling season, which
runs from August in one year to June next year. Even though centrally auctioned, wool producers can
send their wool to one of the three major ports closest to them, i.e. Port Elizabeth, Durban and Cape
Town. Wool brokers facilitate sales of wool at the auction; the main wool brokers are Cape Mohair and
Wool (CMW) and BKB Pty Ltd.

Maize is taken to Elliot maize, BKB, OVK, Border seed, retail markets and local. Maize is also used to feed
livestock. They are using information days and agricultural shows, where their prospective buyers and
public can view some of the products they produce and their usefulness. Maize is also going to be sold
to feedlots that are established around Chris Hani Districts where animals are going to be fattened.

9. Funding plan

9.1 Discussion and recommendations

The farmers are well organized and have been working co-operatively for many years. They are highly
committed to their farming. Since the farmers are working well together on the marketing of wool, it
might help to consider working together also in the marketing of cattle.

9.2 Declaration

The above conclusions are believed to be correct given the assumptions made. However, no claim is
made as the accuracy. Accordingly, no liability is accepted for any loss incurred or allegedly incurred by
any part of acting or refraining from acting as a result of material contained in this report.
10. APPROVAL

a. Project protocol

This section is supposed to be signed by approval committees.

This document requires the following approvals.

Name Signature Date of signature Responsibility
1. Author
2. Deputy Director
3. District Director
4. Project leader