Sunday, May 20, 2012

HOW THE FARM RUNS AS A BUSINESS

Because it is chill today hovering around 5 degrees compliments of the Cold Front sweeping over South Africa, I will describe in as brief as possible way the operation.
Eric the farm Induna and his son Sipho are the really hard workers around here and when push comes to shove can take care of the operations when we are away, provided that the necessary supplies of feed components are on site.
Chickens are the mainstay of the business. Being Free range we do get a premium for those chickens we process in house, but this is only around 10% of the chicken turnover or R3500/month. I do believe with some effort, that this element of the business could be grown to around 35% of the existing business and by definition the rest could be expanded by at least that. The local sales of live fowls generates R32000 per month. I have not invested in heater units so we do shut down for a period over winter. This also allows for thorough cleaning and disinfecting the site which is essential to keep motality rates low.
Vegetables whilst only a sideline generate around R2800/R3000 per month over a 5 month season, which gives a year ave of R1900 per month. The labour costs are high so not much profit as yet??
Furniture sales are again starting and I suppose a figure of R1500 per month is about right.
Sheep sales have averaged around R1000 per month, but we have also benifitted by a generous own consumption for which I have no vale. The same applies to chickens!
Fertiliser costs are zero as we use our chicken litter for ths purpose
Adding it all up the farm generates an average turnover then of R40000. per month.

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