FynbosFarm hydroponics farm business plan strategy and implementation summary. FynbosFarm is a new hydroponics facility in South Africa. It will grow tomatoes, peppers, and cucumbers in hydroponic tunnels for export, and instant turf in the open for the local market.
The FynbosFarm group strategy is to profitably and efficiently utilize present and future agricultural technology in the production of vegetables. The company, by developing a profitable vegetable farm with all the necessary custom-innovated equipment, will gain a significant industry advantage.
Additional application and utilization of horticultural technology in the production of vegetables will double utilization of the climate controlled portion of the overhead.
The company's goals in the first year are to:
Develop the complete project.
To have all 6ha planted and ready for production.
To have the instant turf planted and ready for production early in year 2.
To have grading and pack shed constructed.
The company's long term plan is to also produce more selective vegetables as well as looking to get into the fresh flower market.
5.1 Competitive Edge
FynbosFarm's main competitive advantages are:
Efficient production utilizing greenhouses.
No existing projects of this magnitude in the KZN region.
Experience in the vegetable industry goes back to 1996.
5.2 Marketing Strategy
FynbosFarm will market and supply its products to the selected outlets aggressively, focusing at first on local markets, and then on export options. We will emphasize the reliable year-round output of our climate-controlled hydroponics facilities, as well as the ability to produce in-demand, non-native vegetables.
Marketing for turf will take place with direct contact between FynbosFarm and regional greenhouses and landscapers.
The company will also eventually develop a website and advertise on the Internet, although these future marketing avenues are not included in this plan.
5.3 Sales Strategy
At FynbosFarm, the sales process is primarily the same for vegetables as it is for instant turf, in that both products will be mainly sold through wholesale marketing. Shipments of vegetables will be transported in refrigerated trucks as per orders, and instant turf will be palletized on open back trucks as per orders.
5.3.1 Sales Forecast
We expect to have exceptional sales in the first year. Our direct unit costs include the costs for the agricultural labor force who will tend and manage the vegetables and turf, including incentives and bonuses. These costs are roughly 35% of all direct costs each month.
Sales Forecast
Year 1
Year 2
Year 3
Year 4
Year 5
Unit Sales
Tomatoes
2,100,000
1,500,000
2,100,000
1,500,000
2,100,000
Peppers
205,000
210,000
205,000
210,000
205,000
Cucumbers
250,000
250,000
250,000
250,000
250,000
Instant Turf
150,000
200,000
200,000
200,000
200,000
Total Unit Sales
2,705,000
2,160,000
2,755,000
2,160,000
2,755,000
Unit Prices
Year 1
Year 2
Year 3
Year 4
Year 5
Tomatoes
R4.00
R4.25
R4.50
R4.75
R5.00
Peppers
R10.00
R10.50
R11.00
R11.50
R12.00
Cucumbers
R1.80
R1.90
R2.10
R2.20
R2.30
Instant Turf
R10.00
R11.00
R12.00
R13.00
R14.00
Sales
Tomatoes
R8,400,000
R6,375,000
R9,450,000
R7,125,000
R10,500,000
Peppers
R2,050,000
R2,205,000
R2,255,000
R2,415,000
R2,460,000
Cucumbers
R450,000
R475,000
R525,000
R550,000
R575,000
Instant Turf
R1,500,000
R2,200,000
R2,400,000
R2,600,000
R2,800,000
Total Sales
R12,400,000
R11,255,000
R14,630,000
R12,690,000
R16,335,000
Direct Unit Costs
Year 1
Year 2
Year 3
Year 4
Year 5
Tomatoes
R2.00
R2.13
R2.25
R2.38
R2.50
Peppers
R5.00
R5.25
R5.50
R5.75
R6.00
Cucumbers
R0.90
R0.95
R1.05
R1.10
R1.15
Instant Turf
R4.80
R5.28
R5.76
R6.24
R6.72
Direct Cost of Sales
Tomatoes
R4,200,000
R3,187,500
R4,725,000
R3,562,500
R5,250,000
Peppers
R1,025,000
R1,102,500
R1,127,500
R1,207,500
R1,230,000
Cucumbers
R225,000
R237,500
R262,500
R275,000
R287,500
Instant Turf
R720,000
R1,056,000
R1,152,000
R1,248,000
R1,344,000
Subtotal Direct Cost of Sales
R6,170,000
R5,583,500
R7,267,000
R6,293,000
R8,111,500
5.4 Milestones
The following table and chart show the main milestones for the first year.
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FynbosFarm hydroponics farm business plan strategy and implementation summary. FynbosFarm is a new hydroponics facility in South Africa. It will grow tomatoes, peppers, and cucumbers in hydroponic tunnels for export, and instant turf in the open for the local market.