Citrus Throughput Calculation

1. Citrus Throughput Calculation Dwell ave. of 07 days = throughput per slot of 20.0 Dwell ave. of 08 days = throughput per slot of 17.5 Dwell ave. of 09 days = throughput per slot of 15.5 Dwell ave. of 10 days = throughput per slot of 14.0 Dwell ave. of 11 days = throughput per slot of 13.0 Dwell ave. of 12 days = throughput per slot of 12.0 Dwell ave. of 13 days = throughput per slot of 11.0 Dwell ave. of 14 days = throughput per slot of 10.0 Volume Throughput Based on Dwell • Citrus peak export production period in RSA weeks 20 – 39. • This equates to 140 throughput days. • Example: • Cold Store capacity of 5, 000 slots with ave. dwell of 7 days = 100, 000 p.p.a div. 20 weeks = 5,000 p.p.w = ave. 100% utilization. • Cold Store capacity of 5, 000 slots with ave. dwell of 10 days = 70,000 p.p.a div. 20 weeks = 3,500 p.p.w = ave. 70% utilization. • Cold Store capacity of 5,000 slots with ave. dwell of 14 days = 50,000 p.p.a div. 20 weeks = 2,500 p.p.w = ave. 50% utilization.

2. Citrus Throughput Calculation Using an average handling rate of R165.00 per pallet (incl 7 days storage) Ave. 7 day dwell = 100% utilization = R165.00 x 100,000 plts = R16.5m 100% of revenue capability Ave. 10 day dwell = 70% utilization = R165.00 x 70,000 plts = R11.5m 70% of revenue capability Ave. 14 day dwell = 50% utilization = R165.00 x 50,000 plts = R8.25m 50% of revenue capability Average Revenue Loss Based on Dwell • Conclusion: • Revenue capability is directly associated with ave. dwell time of pallets. • Revenue maximization occurs below 7 day dwell. • Citrus industry ave. dwell time is 10 days, therefore revenue maximization on handling is at 70% • Fixed racking systems operate at 85% of capacity, therefore fixed racking facilities operate at 85% of the industry ave. of 70% revenue maximization per slot. • Citrus dwell time must be reduced to maximize revenue capability per slot

3. Citrus Throughput Calculation Using an average handling rate of R165.00 per pallet (incl 7 days storage) Cold store capacity of 5,000 pallets handles 60,000 pallets between weeks 20 – 39. At 7 days dwell revenue capability = R16,5m 60,000 plts x R165.00 = R9.9m Therefore achieved 60% of revenue capability Example of Revenue Loss

4. Citrus Cold Store Infrastructure Requirement The citrus industry cold store handling rate is generally set with a 7 day free period Therefore cold storage principles should be measured at 7 days Thereafter general storage rates apply after the 7 day period has expired The measurement of cold store infrastructure can then be based on throughput of 7 days Principle • Calculation per 1,000 Pallets Capacity • 1,000 pallets per week = 150 pallets per day in and out • This implies that per 1,000 pallets capacity • 5 Trucks per day should be offloaded • 5 Trucks per day should be dispatched • 8 Containers should be packed per day • Container Bay Calculation • With a 16 hour shift system and productivity of 1 container loaded every 2 hours • 1 Container bay per 1,000 pallets capacity (8 containers x 2 hrs per container = 16 hours) • With a 24 hour shift system and productivity of 1 container loaded every 2 hours • 1 Container bay per 1,500 pallets capacity (12 containers x 2hrs per container = 24 hours)

5. Citrus Cold Store Infrastructure Requirement Intake: 25 trucks per day should be offloaded 16 hour shift system = 3 trucks every 2 hours (1.5 trucks per hour) 24 hour shift system = 1 truck per hour Dispatch: 25 trucks per day should be offloaded 16 hour shift system = 3 trucks every 2 hours (1.5 trucks per hour) 24 hour shift system = 1 truck per hour Containers: 40 containers should be packed per day 16 hour shift system will require 5 functional container bays = 8 containers per bay per day @ 1 container every 2 hours 24 hour shift system will require 3 functional container bays = 12 containers per bay per day @ 1 container every 2 hours Example: Cold Store with Capacity of 5,000 Pallets

6. Citrus Cold Store Infrastructure Requirement Fixed racking systems Fruit fixed racking systems are typically Drive-In type systems Slot utilization estimated ~ 70% Warehouse space utilization ~ 60% Conducive for conventional type shipping – bulk order picking for reefer ships Containerization focused exports are based on consignment type orders Fixed racking systems require advanced order picking ahead of time Requires large accumulation and pre-staging areas This type of system hinders productivity where high volumes of containers are packed Adds multiple handling of pallets Mobile racking systems Conducive for fruit industry Slot utilization estimated ~ 90% Warehouse space utilization ~ 80% High degree of efficiency achieved Stowage and retrieval of pallets done simultaneously Minimal handling of pallets Minimal floor space required Racking Systems and Cold Store Layout