NCERA-FARMS PTY LTD

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NCERA-FARMS PTY LTD

• MANDATE
• Ncera Farms (Pty) Ltd is a public company listed
  in schedule 3B of the Public Finance Management
  Act, 1999 (Act 1 of 1999) with the Department of
  Agriculture, Forestry and Fisheries as a sole
  shareholder. The mandate granted by the
  shareholders, the objectives of the entity is to
  provide extension, mechanical services, training
  and agricultural support services to the farmers
  settled on Ncera Farmland as well as the
  neighbouring communities.

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Table of Contents

• 1. Background
• 2. Ncera Business Model
• 3. Implementation Structure
• 4. Ncera Capital Budget
• 5. Ncera Operational Budget
• 6. Cost Benefit Analysis
• 7. Risk Analysis
• 8. Conclusion

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1. BACKGROUND

• The main aim of Ncera Farms (Pty) Ltd is to
  contribute towards an industry focused farm
  management training, farmer support services and
  the design of franchise type agricultural
  business models for farmers in general and
  beneficiaries of land and agrarian reform in
  particular within the immediate catchment area of
  the centre. Accordingly, Nceras interventions
  are geared towards human capacity development,
  skills upgrading, and income generation, in a
  practical, hands-on fashion. The centre is
  situated in the Welcome Home farm in the Amathole
  district of the Eastern Cape.

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Background Cont.

• The entity is surrounded by nine villages. The
  neighboring villages have a population of 18
  000 and are under Chief Jongilanga. There are
  five primary schools and three high schools. The
  unemployment rate of the area is estimated at
  80.

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2. NCERA BUSINESS MODEL

• Central unit the business nucleus with Beef and
  Goats as the core enterprises.
• Mechanization unit training communities
• Farmers and communities are being assisted by the
  entity in terms of advice and business models
• Skills transfer to small scale farmers on various
  livestock and crop production

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NCERA BUSINESS MODEL Cont
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3. Implementation Structure
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4. Ncera-Capital Budget

• 2013/14 - R2 465 000
• 2014/15 - R3 863 000
• 2015/16 - R3 190 000
• Total - R9 518 000

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5. Ncera-Operational Budget
2013/14 - R5 238 450 2014/15 - R5 468
873 2015/16 - R5 742 316 2016/17 - R6 029 432
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Beef Goats Enterprise

• A 6 months old Weaner

• Goats for Farming purposes

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Vegetables Production Processing
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6. Costs Benefits -Analysis

• Costs

• Benefits

• Watering points
• Fencing
• De-bushing
• Breed herd Costs
• Bulls herd Costs
• Tractors
• Board remuneration, etc

• Job creation
• Local Economic Growth
• Farmer Support Extension Services
• Rural Livestock improvement programme
• Access to Vet services
• Easy access to produce (vegetables) to the
  communities

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7. Risk Factors

• POTENTIAL RISKS
• Squatters
• Un-Attendant Villagers
• Animal diseases
• Lack of community projects
• Lack of Funding
• MITIGATING FACTORS
• Involvement of Stakeholders, Municipality and
  Traditional Leadership
• State Vet and out sourcing
• 3. Development of small projects and gardens
• Department of Agriculture, Forestry and Fisheries
  

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8. Conclusion

• Ncera has potential if funded/recapitalization
• Involvement of all Stakeholders
• High expectations from the Communities
• Old machinery,Tractors,high repair cost
• 10 Farmers leasing land(2,200ha)unutilized
• Non profit oriented Government Entity
• Securing Jobs for Communities, high unemployment
  rate.