Introduction

Structure of the Presentation.

• Section A - Background on Super Grand.

• Section B – The Expansion Project - Rural Development and Land Reform Project.

• Section C – Pipeline Projects.

Section A - Background

Background

• Super Grand Agric Feed is was established in 2009 and

started to operate in 2010.

• The core business is the manufacturing and the

distribution of animal feed.

Vision

• To be a preferred supplier of animal feed within the

African continent.

Mission

• To manufacture quality feed and distribute it at

affordable prices to our clients.

Key Management

Diverse Set of Skills and Depth

SEELAND PEBA – EXECUTIVE CHAIRPERSON

• Extensive experience in crop farming & animal feed

production.

• Experience well over 10 years.

• Work for industry leaders in the industry such as Astral Group.

SIBUSISO MABUZA – CHIEF EXECUTIVE OFFICER

• Extensive experience in economic research; corporate

finance and strategy & planning.

• Experience well over 10 years as business & financial

Analysts.

• Key companies (Urban-Econ; Value Analytics and NEF)

JERRY PEBA – CHIEF OPERATING OFFICER

• Extensive experience in the poultry industry value chain.

• Experience well over 34 years.

• Work both locally and internationally in top management.

• Key companies are Rainbow chicken, Astral and Eagle’s

pride.

Key Management Cont..

Diverse Set of Skills and Depth

JOGA PEBA – FINANCIAL MANAGER

• Extensive experience in finance.

• Experience well over 10 years.

• Key companies GA Mbatha Service Consulting

and Vetho airport.

KENNY ADAMS – PRODUCTION MANAGER

• Extensive experience in animal feed production.

• Experience well over 5 years in the industry.

• Key companies Astral

ZOE MABUZA – HEAD OF CONSULTING

• Extensive experience in project administration.

• Experience well over 10 years.

• Key companies UNISA centre of cooperate citizenship,

UNISA centre for business management, Cornerstone.

Staff Complement

Staff complement of 50.

• Milling Unit 28.

• Broiler Unit 15

• Farming Unit 4

• Consulting Unit 3

Super Grand Business Units

Super Grand Business units

Milling Division Poultry Division Farming Division Consulting Division

Backward integration

in poultry industry:

• To influence value

chain

Market support:

• To assist our

clients to be

sustainable

Strategy pillars

Milling Division

CURRENT MILLING PLANT

• Manufacture and distribute animal feed from a

facility with a capacity to produce 1 200 tons

of feed p/m in three shifts.

Local Clients

Key clients located mainly in (Gauteng, Mpumalanga and Northwest and

Limpopo Provinces).

SUPER GRAND MAJOUR CLIENT LIST

HOPE OF AFRICA POULTRY FARM

STAV POULTRY FARM

EKA-FRESH POULTRY FARM

HLAKANIPHA POULTRY FARM

EKUPHILENI POULTRY FARM

DIKWANKWETLA POULTRY FARM

ELPHASO FARM

SEKHUKHUNE 3 NETWORK

MANYATHELA ADVENTURES

MABENA SIMON PF

NYEZI POULTRY FARM

TRANSBRIGE POULTRY FARM

BENONI POULTRY

NQOBILE CHICKEN FARM

KANGAROO FARM

EKANGALA FARMING PROJECT

BUHLEBETHU G DEALER

MASEMONG POULTRY

PHANGELA POULTRY

UBUHLE BESIZWE

BUBS POULTRY FARM

Super Grand typical clients profile

• Ntuli Broiler farm 80 tons per month. • Robert farm 28 tons per month. • Kangaroo farm 10 tons per month. • Hope for Africa 28 tons per month. • Burgersfort farmers 30 tons per month.

Cross Boarder Clients

• Urban farm Uganda.

• Urban farm Mozambique.

• Urban farm Zimbabwe.

Farming Division

CROP FARM

• 2013 Season - Planted and harvested over 780

tons of yellow maize (90 hectors ) and 320

tons of soya-beans (120 hectors) as inputs for

the milling plant.

• 2014 Season - Planted 210 hectors of maize.

- 20 hectors of potato.

• 2015 Season – planted 230 hectors of maize.

FARM BACKGROUND

• 409 hectors.

• 340 hectors arable (40 hectors irrigation &

dry land).

• 80 hectors of planted pasture.

CATTLE FARMING; GRAZING AND BALES

• Average cattle grazing at 50.

• Average number of bales 2000 produced from

farm.

Poultry Division

POULTRY UNITS

• Hatchery operations - building hatchery for

350 000 day old chicks.

• Broiler operations – providing markets to

emerging farmers – currently growing 220 000

of a 500 000 broiler contract – increase to an

additional 1000 000 birds.

• Total Chicken market

• Current production 1.6 p/a million chickens.

• Total annual market 3.5 p/a million chickens.

• Since Oct 2013 5 co-operatives are running

their businesses with the assistance of

Super Grand -

• Additional 5 cooperatives will come on

stream in the current financial year.

Consulting division

BUSINESS SUPPORT

• GENERAL BUSINESSES

• Turn around strategy to improve business

sustainability.

• Write business plans.

• Build financial models for scenario planning.

• Establish markets for clients.

• Facilitate and conduct training.

• BROILER BUSINESSES

• BIO-SECURITY MANAGEMENT.

• FLOCK MONITORING

• DIESES CONTROL

Section B – STRATEGIC REL..

• Rural development and land reform:

• Gauteng province.

• Limpopo province.

• Mpumalanga province.

• Agriculture:

• Gauteng province.

• Limpopo province.

• Mpumalanga province

Section B - The Project

Supported by the Department of Rural Development and Land

Reform with the objective to achieve the following:

• To increase production capacity of the growing market for

Super Grand Agric Feed and space requirements for storage;

and allow for market diversification through silo products.

• To create sustainable employment within the South African

economy.

• To transform the poultry industry and allow for greater

participation and influence in the poultry industry by black

businesses (pricing and integration).

• To create markets for crop farmers and broiler farmers.

• To contribute towards food security by providing affordable

inputs (feed requirements) to mostly poultry, pig and beef

farmers. – per capita consumption white meat approx 30kg

2010 – 2015 63kg – additional contribution is 240 000 of 500

000.

Benefit of the project The project will have an impact on the following

areas:

• Transformation of the industry - (cost saving benefit) for

cluster farmers.

• On average Super Grand prices are lower from

competitors by R 20 /bag – low overheads; agents

(buy from manufactures for resale).

Case – study ( Broiler farmer with 1000 birds)

• Feed requirements is 80 bags = 4 tons of feed.

• Actual rand value savings per cycle R 1 600

• Actual rand saving annually R 11 200.

Case – study ( Broiler farmer with 40 000 birds)

• Feed requirements is 3 200 bags .

• Actual rand value savings per cycle R 64 000

• Actual rand saving annually R 448 000.

Maize procurement

Current and prospective sources of maize

• Supply own maize 780 tons

• Procure at least 34 630 tons from the market

• Procure at least 15 000 tons (30%) of maize from crop

farmers as per the current list of famers.

• At full capacity the project will provide a market for

maize worth R 105 million – and will be able to

procure maize covering approximately 10 000 hectors.

Own Supply 2%

Buying from the market 68%

Emerging farmers 30%

Integrated procurement strategy

Benefit to broiler farmers...

• Super grand has long-term contract to provide a

market of 500 000 broiler per cycle.

• At least 10 broiler houses will operationalized,

therefore creating 10 new business.

• Total market R 71 million p/a.

• Potential entrepreneurial benefit is 50 people

– based on minimum number of cooperatives

members.

• Current jobs created from broilers 14.

• Additional expected jobs to be created at

least 30.

The Production Complex

• Facility will produce at 6 000 tons of animal

feed per month on 3 shifts.

• The availability of storage space of raw

material and finished products will allow us to

provide the product at competitive prices to

emerging farmers.

• The availability of finished product silos will

allow us to supply feed to co-operatives and

clients that have silo feeders.

The Inside Of The Facility

Quality of Animal feed.

• Feed is registered with Department of Agriculture

Forestry and Fisheries.

• Qualified Nutritionist formulating the animal diet

• Msc in poultry nutrition and is registered as

professional natural scientist in animal science.

• NIR machine to maintain quality on raw material

and finished products.

• We have a qualified scientist who will be joining

the quality department once project is completed.

• Honors in Research Methodology, Molecular

Biology & Medical Microbiology.

.

Current status of the project

Started the ground preparation and site erection in November 2013.

• Office block & changing rooms are 95% complete.

• Factory building 90% complete.

• Production equipment 80%.

• Expected commissioning date March/April 2015.

Project Financing

Started the ground preparation and site erection in November 2013.

• Total investment of over R 20 million.

• Rural development and land reform R 17.4 million.

• Super Grand Agric Feed R 2.6 million – reinvestments from current operations.

New Milling Plant

• Business revenue – 2011/12 R 4 million.

- 2013/14 R 50 million.

- 20/14/15 R 150 million.

Current projects to be implemented.

• Hatchery of 350 000 day old chicks per week –

supported by an offtake agreement.

Current projects to be implemented.

• Transaction to acquire equity in an abattoir that

currently produces 2 million birds per cycle.

Current projects to be implemented.

• Increasing storage facility at

the back of milling expansion

programme including

establishment of the trading

desk.

Section C – PIPELINE 2014/15

Thank you