Free State Irrigation, Maize and Milling Enterprise
North-Eastern Free State Irrigation, Maize and Milling Enterprise
More than just a farm, this a major Irrigation, Maize and Milling enterprise! This is a highly efficient unit, with a well designed milling plant as the nucleus of the enterprise. 586 Ha of the total 1150 Ha consists of Avalon soils, 900 Ha of natural pastures (mostly Rooigras), 45 Ha under Centre Pivots with a further 248 Ha of irrigation planned. Among the other features in addition to the mill are a feedlot for 1000 calves, a piggery and a fully equipped potato sorting and washing facility. This is an industrial plant with an outstanding return on investment with a massive potential!
This farm is a highly efficient unit, with a well designed milling plant as the nucleus of the enterprise.
1550 Hectares in extent, it consists of 586 Ha of high potential Avalon soil (900 mm depth, GPS planned), 900 Ha of natural pastures (mostly Rooigras), 45 Ha under Centre Pivots, with a further 248,4 Ha of irrigation planned. The water for the irrigation is pumped from the Meaul River via 8 km of 350mm main lines to 3 large holding dams. The water rights to pump out of the river have been registered.
In addition there is a feedlot for 1,000 calves and a piggery.
The newly erected 3,000 sq m shed houses the mill and a fully equipped potato sorting and washing facility as well as spacious offices. The potato sorting and washing equipment which handles up to 15,000 pockets/day, is valued at +- R500,000 and will be included in the price of the farm. A contract of 400 tons is available for the potatoes produced on the farm, and the contract is renewable on an annual basis.
The 160 tons of Hominy Chop can be fed to the weaners at the rate of 70% of the concentrate mixture, and this would add considerably to the value of the product.
INDUSTRIAL MILLING PLANT WITH OUTSTANDING RETURN ON INVESTMENT
Milling plant designed to produce 800 tons per month
PRODUCTION BREAK DOWN AND PROJECTED MONTHLY INCOME:
43% Starch =344 tons @ R1900/ton
R 653,600
37% Grit =296 tons @ R1293/ton
R 382,728
20% Hominy chop = 160 tons @ R 380/ton
R 60,800
Total / month
R 1,097128
MONTHLY EXPENSES:
Maize 800 tons @ R 600/ton
R480,000
Salaries
R35,000
Electricity
R 15,000
Bags
18,000
Transport
R55,000
Instalment Wesbank
R40,000
Maintenance ( In fact, grossly overstated )
R15,000
Total / month
R 658,000
Net profit
R 439,128
Annual net profit
R5,269,536
* Fully audited figures available
Incorporated into this system are 2 silos with a capacity of 1,100 tons each, an electronic weigh bridge capable of weighing up to 80 tons, augers, elevators, cleaning and packing units.
The outbuildings consist of tractor, implement and fertilizer sheds and a well equipped workshop. Implements and tractors which are in use, but are not included in the purchase price, include 14 tractors, 9 ploughs, 6 cultivators, planters and hay-making equipment.
The main homestead is a beautiful modern home with 4 Bedrooms, 3 Bathrooms, a Modern Kitchen, Lounges, Dining room, Braai area, Veranda, Swimming Pool, 5 Garages, a 2 Bedroom Flat and a beautiful and unusually large garden with spray irrigation.
There is also a 3 Bedroom Manager?s house.
To ease the demands on management the farm could be run as a milling and cattle enterprise only. The income from the milling enterprise alone without taking the income from rest of the farm into account would ensure a return on the purchase price of the whole farm of 39%-40%.
In addition there are numerous other advantages:
Running costs are cheaper.
The salaries are lower.
The electricity is cheaper.
There are no significant rates and taxes.
There is no rent to be paid.
The cost of water is neglible.
The manager of the mill and the farm manager would both like to stay on. Their experience and knowledge would be invaluable.
Most of the surrounding farmers would be happy to deliver their maize to the mill.
It would cost R 28?R 30 Million to re-develop the farm to it?s present level. The owner has bought into an industrial plant in Kwa-Zulu Natal.
The asking price for the farm, includes the potato and existing irrigation equipment.
