PRESENTATION OF RECAPITALISATION PROGRESS

1. PRESENTATION OF RECAPITALISATION PROGRESS IZINDONGA ZE-AFRIKA 4th February 2014 By Zakhele Maya Director: Operations (zakhele.maya@gmail.com)

2. Presentation Outline • Background information • Arable and grazing land • Recapitalisation • Recap structure • Recap Impact • challenges • Conclusion

3. Background Information • The Property is in Greylingstad, Dipaliseng (CRDP) Municipality, Mpumalanga Province • A PLAAS program leased farm • Women and youth ran operation • Started in2007 with Chicken Broiler Production as main enterprise • Consists of: 220 Ha of Arable land (Maize and Soya Beans), 200 Ha of Planted and Natural Grazing Pastures 26 Ha of Broiler housing infrastructure

4. PARTIAL MAP TRAVELING FROM GREYLINGSTAD TO TEAK WORTH

5. THE VIEW OF THE FARM FROM GOOGLE EARTH IN 2009

6. Arable Land • Planted in Partnership with Witpot Broidery in a 50/50 partnership • Planted over the last 4 seasons • Over 3000 Tons of grain produced and sold at safex prices • Over 2500 bales produced • Over 50 cows obtained through the partnership • Would be phased out in the next 3 seasons

7. Arable Land

8. Proceeds of cows from last season

9. Recapitalisation • Broiler production main enterprise • Astral as contract market • Recap conducted from 2011 to 2013 • Total of R15 M for capitalisation • R 11 Million on Infrastructure • R 4 M for production inputs • First phase complete and farm in full production • Agridelights Consulting and Training as strategic partner

10. Picture representation of the 9 broiler houses which occupy the 29ha we have.

11. Recap Structure • A solid strategic partnership was created • Agridelights training and consulting provided strategic and tactical support without profit sharing • Managed the partnership and implemented the business plans • Business plan in full swing for the years of funding • Implemented recap internally

12. Recap Impact • Brought farm into operation after 5 years of inactivity • Over 500 Jobs Created through recap and production • Production Jump from 0 to over 2 000 000 chickens per annum • A revenue collection from – R50 000 to over R 56 000 000 per annum • Skills development in Broiler Management and training site for MRTT and Agriseta

13. Recap Impact • Skills in construction and farming • Enterprise development through supplier development • Provided access to contract market through R 4 000 000 funding • See diagrams bellow for performance results:

14. Before Recap

15. During Recap

16. After Recap

17. Figure 1. it’s a graphical representation for total number of chicks placed per cycle since last year till current year.

18. Figure 2. graphical representation of Total Feed being consumed in tons for the past Cycles.

19. Figure 3. graphical representation of the number of chicks we lost during the cycles from varies conditions emanating from poor quality chicks to natural death

20. Figure 4. Data representation of the how much feed we used to gain the kilograms we gained per chick.

21. Figure 5. it’s a graphical representation which illustrate the number of chicks we loose due to theft, corruption which needs to be investigated and dealt with.

22. Figure 6. PEF which is an instrument being used to measure our performance per cycle as we being rank amongst other suppliers.

23. Challenges • Increasing needs of the breed • Lag in infrastructural development • Constrains of contract markets • Lack of control of the value chain • Unstable market price (cheap imports) • Understanding of the specific farm environment • Security of tenure

24. Conclusion • Could not have had the impact without recap • Challenges persist but resolvable • Strengthen recap especially infrastructural development • Invest further in infrastructure to meet the demands of the breed

25. Thank you