NCERA-FARMS PTY LTD

MANDATENcera 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.

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

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, Ncera’s 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.

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%.

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

NCERA BUSINESS MODEL – Cont…

3. Implementation Structure

4. Ncera-Capital Budget

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

5. Ncera-Operational Budget

2013/14 - R5 238 4502014/15 - R5 468 8732015/16 - R5 742 3162016/17 - R6 029 432

Beef & Goats Enterprise

A 6 months old Weaner Goats for Farming purposes

Vegetables Production & Processing

6. Costs –Benefits -Analysis

Costs

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

Benefits

• 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

7. Risk Factors POTENTIAL RISKS1. Squatters2. Un-Attendant Villagers3. Animal diseases4. Lack of community projects5. Lack of Funding

MITIGATING FACTORS

1. Involvement of Stakeholders, Municipality and Traditional Leadership2. State Vet and out sourcing3. Development of small projects and gardens4. Department of Agriculture, Forestry and Fisheries

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.