This agricultural operation in the Eastern Cape Province of South Africa produces potatoes, maize and dry beans on 3 950 hectare (9 760 acres) of cultivated land.

The farm also generates income through cattle husbandry on 17 000 hectare (42 000 acres).

While it is a well-established and modern operation, the farm has not been fully developed to its potential of 4 100 hectare (10 131 acres) of arable land.

This and the many researched prospects for the beneficiation of its own crops, points the way to significant growth and income-boosting opportunities that an investor or acquirer can harness.

Clients

The farm supplies fresh produce to a wide market with diverse applications, ranging from national supermarket chains to animal feed producers.

Most significantly, the business markets directly to major food retailers where the company has supplier listings with all the major supermarket chains that dominate the South African market, including Spar, Shoprite  Checkers, Pick ‘n Pay, and Massmart,.

New developments

This progressive farming operation has commenced investigating the options available of adding value to the current farm output. Initial findings are that there is significant potential in the beneficiation of a portion of the potato crop into potato starch, flour, fresh-cut chips (French fries), or frozen chips.

In South Africa, the combination of a developing economy and the rapid urbanization of the population creates substantial markets for processed crops. Any investor or acquirer will benefit from pursuing this opportunity that has already been initiated.

An investor in or acquirer of this agricultural operation can expect:

  • Fully developed farms with substantial crop output
  • Low risk production profile achieved through a diverse product mix
  • Own sales operation
  • Established client base with vendor listings at major national food retailers
  • Substantial opportunity for production expansion
  • Significant potential for the beneficiation of farm produce