Posted by Hansie Britz on 8 August 2018

How Profitable is Macadamia Nuts?

                             

Macadamia nuts are quickly becoming an important crop in South Africa and are possible the fastest growing tree crop industry in the country.

OPPORTUNITIES

The volume of Macadamia nuts exported has grown tremendously over the past few years and is expected to increase in the future. South Africa is tapping into new markets in China and Hong Kong. A number major growers have already received accreditation for Global GAP and the rest of the industry is aware of the need to follow fast in their footsteps. Worldwide demand for Macadamia nuts exceeds supply and the market is expected to even grow further. The use of Macadamia nuts in as an ingredient in confectionery and baking presents a huge opportunity.

PROFITABILITY

Macadamia nuts are hard to beat when it comes to the most lucrative crop per land area used in South Africa. According to statistics from the SA Macadamia Growers Association (SAMAC), the average export price for macadamia kernels in 2017 was R224.15/kg. The price for nuts in a shell was an average of R75.58/kg. 

A single mature macadamia tree can produce anything from 16 kilograms to 32 kilogram of nuts in the shell depending on the variety. That is a yield of R1200 per tree – at a minimum. At around 312 trees per hectare, that should deliver R374 400 per hectare.

CAPITAL NEEDED

Apart from the land and housing you will also need money for the following:-

* trees, land preparation and tree establishment;

* a shed for storage, post harvest handling and drying;

* an irrigation system including piping and under-tree sprinklers;

* a tractor – about 90hp;

* a slasher;

* a  trailer: and

* a boom sprayer for herbicides.

SOIL

Macadamias grow on a a wide range of free-draining soils but perform best on deep, well-drained soils, rich in organic matter. For successful commercial production, a minimum depth of 0,5m of friable, well-drained soil is essential. A depth of 1m is preferred, as this minimizes the risk from trunk canker disease and tree decline. However, be aware that extremely well-drained spoils may be a problem in drought years, if not irrigated. Avoid soils with heavy clay or rock bars within 1m of the surface.

WIND PROTECTION

Protection from strong winds is desirable, either through natural forest surrounds or planted windbreaks. Macadamia trees are brittle and breakages occur easily, particular during storms in highly exposed sites. Wind can also slow growth in young trees and may cause premature fall of young, immature nuts.

FIRE RISK

As macadamias are highly susceptible to fire damage, take the fire risk of surrounding bush-land into account when purchasing land. This can be minimized by preventing the build up of long grass in dry years.

CONTACT US NOW IF YOU NEED HELP IN THIS AREA OR WITH A PROFESSIONAL FARMING BUSINESS PLAN.

(27) 11 704 1248 or (27)84 683 3143 or money@global.co.za

 

                       

 

Posted by Hansie Britz on 5 August 2018

What is a PEST Analysis?

                              

 

PEST is an acronym for:

P – Political;

E – Economic;

S – Social; and

T – Technological.

All external factors that commonly effect business activities and performance.

PEST Factors

Political – Government regulations and legal issues affect a company’s ability to be profitable and successful and this factor looks at how that can happen.

Economic – This factor examines thee outside economic issues that can play a role in a company’s success. Items to consider include inflation, interest rates, economic growth, unemployment etc.

Social – The Social factor analyzes the demographic and cultural aspects of the company’s market. Items to consider include demographics, population growth, age distribution etc.

Technological – Technology issues affect how an organization delivers its product or service to the marketplace. Items to consider include current technology, role of the internet, technology changes etc.

PEST Limitations

A PEST Analysis scans only the external environment while the internal environment is completely ignored. For the PEST Analysis to be worthwhile it should be used in conjunction with a SWOT Analysis – Strengths, Weaknesses, Opportunities and Threats.

Why is a PEST Analysis important?

Because these can influence marketing and relationships that a company has worked hard to develop. Knowing ahead of time that a change may occurring will help making better business decisions.

A PEST Analysis guides us to identify effective strategies for setting priorities, allocating resources, planning for time and development roadmap, and formulating control mechanisms. With this analysis, a business owner can identify potential opportunities and threats associated with their strategies and figure out ways to take advantage of them and/or avoid them totally.

DO YOU NEED ANY HELP WITH A PROFESSIONAL PEST ANALYSIS CONTACT US NOW AT – (27) 84 583 3143 OR money@global.co.za

                                           

 

Posted by Hansie Britz on 30 June 2018

SOYA BEAN FARMING

                       

Soybean production surpassed sunflower in 2012, becoming the country’s most important oil-seed crop (BFAP 2016). Soybeans are mainly cultivated under dry-land conditions., and grown primarily in Mpumalanga and the Free State. Over two-thirds of the country’s soybeans is grown here (DAFF 2015), KZN and Limpopo are also significant soy bean growers, followed by the North West and Gauteng.

Depending upon local conditions, soybeans are typically planted in November through December. The plants react to day/night length ratios which stimulate the reproduction process. Planting in January will result in a shorter plant with lower harvest potential, as the days shorten during growth. On ripening, the leaves turn yellow and the moisture content of the seeds drops – from about 65% to 14% within 14 days – given that the weather is dry and hot

REASONS FOR SOYBEAN GROWING:

  • Diversification away from maize.

  • The growing animal – feed demand.

  • Growing production of soy-food.

  •  Bio-diesel plant from soybeans.

  • Soybeans is one of a few crops that can be planted in rotation with wheat to ensure two crops per annum.

  • Crop rotation benefits include increased yields for both crops, and simplified weed and pest control.

  • Since South Africa has to import soy, marketing is not a problem.

 

                               

 

RAINFALL REQUIREMENTS

Rainfall of 500 to 900mm is required for better yields and better seed quality, depending on growth condition. Soya beans are susceptible to drought during the flowering and pod formation stages. They can also do well in warm, dry areas under irrigation.Excessive rainfall prior to and during flowering can result in luxuriant growth and increased lodging. Water logged conditions have a negative effect on the crop yield.

SOIL REQUIREMENTS

Deep, well-drained soil with a fine but firm seedbed that is high in fertility and has good water-holding capacity is needed for good soya bean yields. Soya beans are better adapted to soil types with a lower pH lower than 5.2 impedes nitrogen fixation. Compacted soils should be avoided because the hypocotyl of the soya bean breaks easily during emergence if under pressure. It is preferable to plant in moist soil.

MARKETING

There is a growing interest in soya products in South Africa because of the health benefits attached to them. Soya bean consumption in the country is estimated at 25% for oil and oil cake, 60% for animal feed and 20% for human consumption. The marketing of soya beans has moved away from single-channel marketing to a free market system. The system complies with a free marketing economy, where the producer markets has his own product to his own advantage.

The local price of soya beans is derived from world price levels of oil seed products and if a net local deficit applies, large quantities of these products must be imported. The largest price determinant, however, is the international price level of oil and oil cake. Because of the fluctuation of world prices, one can expect the trading of locally produced oil seeds to be increasingly linked to international prices. The bio-fuel industry will also open doors for the soya bean market.

Food security concerns and the growing global population are particularly highlighted as the main soy bean development agenda. Soy beans present farmers a cover crop that could assist in reducing soil erosion, improving soil fertility as well as diversifying income opportunity and food resources.

CONTACT US NOW IF YOU NEED HELP IN THIS AREA OR A PROFESSIONAL, BANKABLE FARMING BUSINESS PLAN – (27)84 583 3143 OR money@global.co.za

                                             

 

Posted by Hansie Britz on 25 June 2018

How profitable is Avocado Farming?

                                   

The market for avocados has been growing rapidly, and many South African growers are jumping into this market. Avocados can be produced 12 months a year and because there are limited avocados available in South Africa from October  February there is a huge shortage and therefore people are prepared to pay crazy prices.

Greater levels of dispensable income, together with generic promotion and an awareness of the importance of healthy eating, have increased the demand for quality avocados. There has also been growth in the upper income group that is willing to pay high prices for value added products. Consequently, there is strong growth in the sales of avocados that are sold ripe and ready to eat.

MAJOR PRODUCTION AREAS

Avocado production in South Africa is concentrated mainly in the subtropical areas of Limpopo, Mpumalanga, and parts of KZN. Production in these provinces are as follows:

Limpopo Province – 59% of the national production.

Mpumalanga Province – 3% of the national production.

KZN Province – 8% of the national production.

Cultivars

Fuerte

Pear shaped, small to medium or a little larger; skin slightly rough to touch, with many small yellow dots. It is an early mid-season bearer, has an excellent flavour and is susceptible to fungal diseases.

Hass

Pear shaped to ovoid; has a tendency to be undersized, except in New Zealand; skin tough, leathery, dark purple or nearly black when ripe. Mid-late season, medium sized fruit with good shipping qualities. Excellent taste and increasingly popular with the European market.

Ryan

Pear shaped; medium size, skin medium- rough; flesh of fair quality. Tree large and bears regularly but not as heavily as Fuerte or Hass. Late Season, large seed, medium vigour tree.

Pinkerton

Early crop, roundish, late, pear shaped with neck; medium size, skin medium- leathery. Rated as of good quality but inferior to Hass and Fuerte; tends to darken in the latter part of the season. Mid season, high yielding, occasionally post-harvest problems after storage.

Reed

Round; medium to large (227 – 510g) skin slightly rough; medium – thick, faintly nutty flavour; does not darken when cut and rated as excellent quality. It bears early regularly; and is sensitive to cold.

Edranol

Pear shaped; medium size; skin olive green, slightly rough, flesh of high quality, nutty flavour and rated as excellent.Cultivar is disease resistant.

TEMPERATURE

Commercial avocado cultivars are best suited to cool, subtropical conditions with average daily temperatures between 20 and 25C. Light frost can be tolerated but not during flowering and fruit set (August to September). Average temperatures during flowering and fruit set should preferably be above 18C.

RAINFALL

All avocado cultivars that are grown commercially in SA are known to be sensitive to water stress. A well distributed rainfall in excess of 1000 mm p.a. is desirable, although most avocado production regions experience a dry period during flowering. In the vast majority of cases, therefore, supplementary irrigation during this period is essential.

     

IF YOU NEED HELP WITH A PROFESSIONAL, BANKABLE FARMING BUSINESS PLAN OR WANT TO DISCUSS ANY RELATED FARMING ISSUE CONTACT US NOW: money@global.co.za or (27) 84 583 3143

Posted by Hansie Britz on 24 June 2018

SWOT Analysis. What is this?

 

 

SWOT stands for Strengths, Weaknesses, Opportunities and Threats. A Swot Analysis is a simple but powerful tool helping businesses to develop their business strategy, whether a start=up business or an existing company.

Strengths and Weaknesses – are internal to a company – things that you have some control over and can change.

Opportunities and Threats – are external to a company – things that are going on outside your company, in the larger market and that you do not have control over.

HOW TO DO A SWOT ANALYSIS

Doing a SWOT Analysis is similar to a brainstorm session, with right and wrong ways to run them. A good idea is to give everyone a pad of “sticky – notes” and have them quietly generate ideas on their own to start things off. This will prevent group-think and ensures that all voices are heard.

After about 15 min of private brainstorming, put all sticky-notes up on the wall and group similar ideas together. Once all ideas are organized, it is time to rank the ideas according to their importance. The list is now up for discussion and debate, and someone in the room should be able to make the final call on the priority (usually the CEO) but could be delegated to someone else.

SWOT ANALYSIS EXAMPLE

 STRENGTHS

 WEAKNESSES

Management Skills of owner.

Lack of Financial Skills.

Strong Entrepreneurial spirit of the business owner.

Lack of comprehensive accounting system.

OPPORTUNITIES

THREATS

The existence of untapped markets.

Higher Eskom tariffs may affect the business.

Opportunity to enhance sales via internet marketing.

Threats from well-established competitors.

FURTHER ACTION:

With the SWOT Analysis completed, you’re ready to convert it into real strategy. The first step is to look at your strengths and figure out how you can use those strengths to take advantage of your opportunities. Then look at how your strengths can combat the threats that are in the market. Use this list to produce a list of actions that you can take.

With your action list you can look at your company calendar and start placing goals (or milestones) on it. What exactly do you want to accomplish in each ca lender quarter (or month) moving forward. You also want to do this by analyzing how external opportunities might help you combat your own, internal weaknesses.

DO YOU NEED ANY HELP IN THIS REGARD? CONTACT US NOW FOR PROFESSIONAL HELP: (27)84 583 3143 or money@global.co.za 

 

 

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