Project information

Place of Distribution

Consumers will buy our vegetable products at national supermarket chains, fruit and vegetable chain stores and from street vendors. Nutrition Labelling. When you sell your fruits and vegetables, it is recommended that you supply the necessary nutritional information about these products with the help of package labels. Mdx Agri delivers their products to the fresh produce market by road.

8. 
    Marketing Options
   

Mdx Agri has a marketing option of by passing the services of agents and selling directly to customers. This option will be pursued immediately as soon as the company is in operation.

9. 
   Availability of Marketing Infrastructure
   

There is well developed Fresh Produce Market with state of the art marketing and infrastructure and fresh produce sales professionals at the disposal of Mdx Agri.

10. 
    Marketing Costs
    

The list below represents Mdx Agir’s marketing costs:

1	Packaging Costs		Monthly Marketing Expenses
	Cost of 1 packaging bag	R 25.00
	Monthly Sales Volume	216000
	Number of units in 1 crate	50
	Number of packaging bags	4320
	Packaging Cost		R 108,000
2	Transport Costs
	Diesel/km	R 35.00
	Number of kilometers	350
	Transport		R 12,250
3	Commissions	% Rate
3.1	Fresh Produce Market	5%
	Monthly Sales volume	216000
	Selling Price/Unit	R 5.00
	Monthly sales revenue	1080000
	Commission as % of sales revenue		R 54,000
3.2	Agents’ Commissions
	Fresh Produce Market	7.5%
	Monthly Sales volume	216000
	Selling Price/Unit	R 5.00
	Monthly sales revenue	1080000
	Commission as % of sales revenue		R 81,000
	Monthly Marketing Expenses		R 255,250

6. 
   FUNDING PLAN
   

1. 
   Fixed Asset Analysis
   

Mdx Agri requires a grant to finance the acquisition of farming implements, equipment and agricultural inputs. An analysis of the value existing equipment together with cost of acquiring new equipment is the depicted in the computation below.

MaxAgri Asset Budget						TOTAL
Land: Original cost		R 1,785,000
Buildings		R -
Land and Buildings						R 1,785,000
Equipment
Item Description	QTY	Price
Tractor		R 60,000
Trade Vehicles		R 65,000
Green House		R 84,000
Existing Equipment						R 209,000
TOTAL EXISTING ASSETS						R 1,994,000
New Equipment Required
Pipe Plastic. HDPE 40mm Class 10 100m	15	R 18,978
Drip Aqua GML 30cm 1.14L/H 3048M	3	R 8,486
Drip Lin 16mm 1.6L/H0.3 space 500m	20	R 32,609
Returnable containers(Crates)	600	R 90,000
Shade netting set	1	R 1,763,696
Solar System	1	R 91,723
FUNDING REQUIRED FOR NEW EQUIPMENT					R 2,005,492
Total Budget : Farm Assets						R 3,999,492

2. 
   Working Capital Requirement
   

Due to the fact that lettuce takes approximately five months to be ready for harvest, Mdx will require working capital to keep the business going until the first income. An analysis of working capital is presented below.

Input Item	Input Cost/Plant	Lettuce plants to be produced/Month	Working Capital required
Fertilizer	R 0.10	240000	R 23,133
Water	R 0.06	240000	R 14,400
Wages	R 0.11	240000	R 25,452
Seeds	R 0.06	240000	R 15,568
Energy	R 0.15	240000	R 36,000
Total Working Capital required a month			R 114,553
Months duration for lettuce to be ready			6
Funding required for Input costs			R 687,321
Crop Insurance @ R500 a month			R 3,000
Delivery diesel @ R12250 a month			R 73,500
Total funding required for working capital			R 763,821

1. 
   Summary Requested as a Grant
   

New Equipment	R 2,005,492
Working Capital	R 763,821
GRANT FUNDING	R 2,769,313

7. 
   FINANCIL BUDGET
   

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Climate
Lettuce is a cool-weather annual crop which is not badly damaged by winter cold and light frosts, although differences in tolerance to cold (or heat) may vary appreciably among cultivars. Heavy frosts will, however, severely scorch the leaves, especially mature heads. It grows best under short-day conditions, but the greatest demand is for use in salads during the summer. The most favourable temperatures for optimum growth and development are daily means between 15°C and 18°C, with monthly means between 7°C and 24°C. Day temperatures ranging from about 17°C to 27°C, and night temperatures between 2°C and 12°C, are most suitable. Many cultivars will produce only small, inferior heads under hot summer conditions. Certain diseases are more prevalent in hot weather. High temperatures, especially with young plants, may also induce this annual crop to bolt, i.e. run to seed prematurely. Any growth stress, such as that caused by a lack of water, will intensify the problem of bolting. When a seed stalk starts to form in a head - it need not necessarily be visible - the leaves tend to develop a bitter taste.
Soils
The crop is fairly tolerant of soil type, and will do well on soils varying from light sand to heavy clay, provided the nutritional and water status is good. Best results are obtained on fertile loams, well supplied with organic matter. Soils which crust badly are less suitable, particularly when the crop is direct-seeded. The most favourable pH (KC1) appears to be between 5,0 and 6,5. Whereas the deep, well-drained soils are suitable for most crops, including lettuce, the latter, with its shallow root system, can be grown quite successfully on relatively shallow soils, provided a favourable soil moisture regime can be maintained.
The seeding rate is generally about 1,5 kg per hectare, but is sometimes as high as 3 kg. Sowing depth varies between 10 and 15 mm. The seedlings are later thinned out to the desired spacing - a time -consuming and labour-intensive operation. Such thinnings are occasionally used for transplanting, where necessary, but these transplants tend to extend the harvesting season unduly. The practice of direct seeding should be considered only under cooler, more favourable climatic conditions, where frequent, light irrigations can be applied, and on relatively weed-free lands. As lettuce seed is small, the soil should not be subject to crusting. It should be worked to a fine tilth, without clods. It should also be as level as possible, to ensure a more even plant emergence. The seedlings may be transplanted, and may thus be raised in seedbeds, but seedbeds are seldom used in commercial practice. In KZN the most common method is to use seedlings raised in seedtrays. Roughly 500 g of seed is needed to raise sufficient plants for one hectare when using seedbeds, whereas about 300 g is generally adequate when seedtrays are used. Plants are normally ready for transplanting after about 5 weeks.

Spacing and plant populations Spacing and plant populations can have a marked effect on total yield and on head size. The total yield tends to increase with an increase in plant population. However, as the inter-plant competition increases with higher density plantings, head size becomes smaller. Head size is a very important quality factor, with the larger heads normally commanding the higher prices. Plant spacings vary from about 250 mm to 350 mm apart in rows drawn 350 mm to 450 mm apart, rarely up to 600 mm. Plant populations vary from about 60 000 to 100 000 plants per hectare.

Crop rotation A two-, or preferably three-year rotation is advocated to reduce disease build-up. Few of the organisms causing diseases of lettuce attack other vegetable crops, so most other vegetables can be included in a rotation with lettuce. However, Sclerotinia rot can affect many vegetable crops and, should this be a problem, the choice of suitable rotational crops is more limited. Water 4800 m³.