Farm business planning project of tatenda kangwende final

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Utilizing Kent Estate as a template.

By Tatenda Kangwende

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Table of Contents:

Table of Contents Table of Contents:.................................................................................................................................III Executive summary:.............................................................................................................................VI Dedication:.........................................................................................................................................VIII Acknowledgment:................................................................................................................................IX List of abbreviations:...........................................................................................................................XII Table of figures:.................................................................................................................................XIV List of tables:......................................................................................................................................XVI List of appendices:..............................................................................................................................XIX CHAPTER 1: INTRODUCTION AND BACKGROUND INFORMATION....................................- 1 1.1

Introduction...........................................................................................................................- 1 -

1.2

Farm production history........................................................................................................- 2 -

1.3

Farm agro-ecological conditions...........................................................................................- 5 -

1.3.1

Rainfall..........................................................................................................................- 5 -

1.3.2

Temperature:................................................................................................................- 14 -

1.3.3

Altitude:.......................................................................................................................- 15 -

1.3.4

Soils:............................................................................................................................- 15 -

1.3.5

Vegetation:...................................................................................................................- 18 -

1.4

Water Resources:.................................................................................................................- 19 -

1.5

Farm organisational structure:.............................................................................................- 21 -

1.5.1 Farm ownership structure:..................................................................................................- 21 1.5.2 Organogram:.......................................................................................................................- 21 1.5.3 Working Conditions:...........................................................................................................- 23 1.6 Conclusion:...............................................................................................................................- 23 Chapter 2: Farm Production Plan:...................................................................................................- 24 2.1 Introduction:..............................................................................................................................- 24 2.2 Summary of physical farm production plan:..............................................................................- 24 2.3 FIVE YEAR CROP ROTATION PLAN:..................................................................................- 27 2.4 FIELD/ Summer CROP PRODUCTION PLAN:......................................................................- 28 3

4 2.4.1 Tobacco production:...........................................................................................................- 28 2.4.2 Maize production plan:.......................................................................................................- 33 2.4.2 Commercial Soya Bean Production:..................................................................................- 34 2.5 HORTICULTURE PRODUCTION PLAN:..............................................................................- 36 2.5.1 Potato production................................................................................................................- 36 2.5.2 Peas production:.................................................................................................................- 37 2.6 LIVESTOCK PRODUCTION PLAN:......................................................................................- 39 2.6.1 Broiler production:.............................................................................................................- 39 2.6.2 Beef Production:.................................................................................................................- 40 2.7 Conclusion:...............................................................................................................................- 41 Chapter 3: FARM INFRASTRUCTURE DEVELOPMENT PLAN:..............................................- 42 3.1 INTRODUCTION:....................................................................................................................- 42 3.2 FARM MACHINERY AND IMPLEMENTS AT FARM:.........................................................- 43 3.3 FARM STRUCTURES AT THE FARM:...................................................................................- 45 3.4 IRRIGATION INFRASTRUCTURE AT THE FARM:.............................................................- 47 3.5 Farm Infrastructure Development, Construction and Procurement Plan:...................................- 47 3.6 Repairs and maintenance schedule:...........................................................................................- 49 3.7 Conclusion:...............................................................................................................................- 50 Chapter 4 Marketing plan:...............................................................................................................- 51 4.1 Introduction:..............................................................................................................................- 51 4.2 SWOT Analysis:........................................................................................................................- 52 4. 3 Channel of product flow from the producer to the market:.......................................................- 53 4.4 Marketing strategy:....................................................................................................................- 56 4.4.1 Pricing strategy...................................................................................................................- 56 4.4.2 Placement strategy..............................................................................................................- 56 4.4.3 Promotional strategy:..........................................................................................................- 57 4.4.4 Product strategy:.................................................................................................................- 57 4.4.5 Branding strategy:..............................................................................................................- 57 4.5 Marketing activities:..................................................................................................................- 58 4.6 Conclusion:...............................................................................................................................- 59 CHAPTER 5: FARM FINANCIAL PLAN.....................................................................................- 60 5.1: Introduction:.............................................................................................................................- 60 5.2 Summary of Production Plan:....................................................................................................- 60 4

5 5.3 Capital Costs:............................................................................................................................- 61 5.4: Variable Costs...........................................................................................................................- 62 5.5 Fixed costs:................................................................................................................................- 65 5.6 Enterprise gross margin analysis:..............................................................................................- 66 5.7 Farm Financial Statements:.......................................................................................................- 67 5.7.1 Summary of income statement:..........................................................................................- 67 5.7.2 Summary of balance sheet:.................................................................................................- 70 5.7.3 Summary of consolidated yearly cashflow statement:........................................................- 70 5.8 Summary of Project financing plan:..........................................................................................- 70 5.9. Conclusion:..............................................................................................................................- 71 -

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Executive summary: Kent Estate is a large, 3200 hectare farm located just approximately some 13 miles from the quaint Zimabwean town of Norton, in Mashonaland West province. The farm has for a long time, successfully farmed beef cattle, irrigated commercial potatoes, irrigated winter peas, been contracted to rear over a million Cobb 500 broiler birds per annum (arguably one of the largest contract poultry growers in the nation of Zimbabwe), and nearly four hundred hectares of commercial maize and soya beans every summer cropping season.

The estate is seeking funding to the tune of a seasonal of some $562 338 as well as, over the next five years, a total capital expenditure loan of $1 361 770. These funds will be used to build a new farm workshop, refurbish aged poultry houses which will be almost three decades come the year 2020, as well as to build a new tunnel barn as the farm finds its stride being a nascent grower of tobacco.

This farm business planning document will highlight all the essentials in the use and rationale behind these requested capital amounts.

Sincerely

Tatenda Kangwende

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Dedication:

This farm business planning project is dedicated to the late Dr. Z.K.Z Kangwende and his surviving spouse, namely Mrs. R.A. Kangwende, without whom this student would not have enjoyed/suffered the privilege of enrolling and being edified with a rich educational experience at Blackfordby College of Agriculture.

Manifold thanks to you both.

Sincerely Tatenda Kangwende

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Acknowledgment:

It was the famed and now figuratively immortal (through his beneficial contributions to humanity) Sir Isaac Newton who once mellifluously uttered that, “If I have been to see farther, it has only been because I had the privilege of standing on the shoulders of giants.” In the same vein –with the pun intended as well- for this student to have seen this farm business proposal planning project onto completion, it too, was due to him having stood on the intellectual, financial, and other shoulders of the big, friendly giants whom he has been privileged to interact with in the short span of life which he has lived thus far. Among those giants are: 

Mrs. R.A. and the late Mr. Z. Kangwende: Mom, you are such a pillar of support.

Thank you for rooting for your son always. Can never begin to pay you back, but will strive to pay it forward. Dad, thanks for living such a rich and meaning life, to borrow

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the title of one of Michael Jackson’s songs, you are, “Gone too soon.”

Mr. Russell Tawanda Muzhandu, who is a production manager at a farm in Chipinge

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for assistance with Tobacco enterprise requirements.

Mrs. Susan Muchingami (nee Bumhira), former Summer crops head at Kent Estate (now acting head of horticultural crop production at Kent Estate): Thanks so much ma’am Muchingami for being so quick to point this student in the right direction for the relevant information to get this project off the ground. Without you, would not have met the helpful team at Mightyflow Irrigation, obtained the vitally important agro-ecological zone information as it pertained to Kent Estate. Your alacrity and friendliness also allowed this student to be able to ask other relevant agronomic

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related questions and have them fully answered.

Mr. Kelvin Makina (a.k.a Mr. Sulu or Tocky), manager of the summer-cropping department at Kent Estate: Your knowledge and insight into the ins and outs of excellent summer crop production is second to none. Thanks for informing this student as to operating procedures which ensure success in summer crop production, most notably corn, soya, sugar bean and sorghum production to but mention a few of

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the summer crops which you know so well.

Mr. Allan Muchenga (a.k.a. Mr. Muchengs), manager and head of the livestock department at Kent Estate: Your knowledge of beef cattle production is at the upper echelons sir. Thanks for always being willing to help and answer all questions

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pertaining to beef cattle production. You are a real asset to Kent Estate, and wish you 

an enjoyable retirement come June of this roman year of 2015 C.E. Mr. Mutana of Chibero College of Agriculture: Thank you sir, for verifying the agroecological information for the natural region and vicinity in which Kent Estate is

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located.

Profert Zimbabwe (Pvt) Ltd. : For being kind and generous enough to provide a

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comprehensive retail price list of most of your varied fertilizer products.

Seed-Co Limited: for your retail price list of your commercial seed products (which

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have been effective and correct as of September 2014) Shalom agro-chemicals: For their phenomenally comprehensive retail price list.

Thanks so much. It was a pleasant problem having to enter the full catalog of products

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and prices into the price-list.

A kind gentleman from Mightyflow Irrigation (Pvt) Ltd. named Simba: If only everyone was as quick and adept at using e-mail as you were sir; you make it so easy for people to communicate with you. Thanks so much for the borehole specifications

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of those boreholes at Kent Estate.

Mr. R. Chinhoi – an agronomist of note at ZFC Limited : Thank you sir, for lending your expertise and time in offering sound agronomic advice and recommendations for

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the crops requested. Truly indebted to you. You serve customers well.

Mr. J. Philime, the social media team at ZFC Limited, and all the dedicated staff at ZFC Limited: You all treat customers (even prospective ones) like gold. Your information for input prices and all other questions answered in relation to crop

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production are simply second to none. Many thanks.

The agronomic team at Windmill Ltd: Your expertise into farming is priceless.

Thanks for your invaluable recommendations for the agronomic and horticultural

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crops requested.

Profeeds (Pvt) Ltd (and especially the marketing administrator at the concern, namely a ma’am Thabo G.R. Gwashavanhu): For your alacrity in providing a

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quotation of inputs for ensuring a viable broiler enterprise.

Dr. Martin B. Matingo of Coopers Zimbabwe: For furnishing/providing this student with a comprehensive price-list of inputs and chemicals for livestock enterprises.

Only a fraction of what he munificently provided will appear on the price-list found in

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the appendix of this project.

Mr. Dzidzai Munhutu of Agricura: Your assistance with a comprehensive pricelist from that respected powerhouse is appreciated. Thanks for your cheerful service too.

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Mr. Solomon Mbewe (competent and accomplished head of the farm workshop at Kent Estate): Ever so cool, calm and collected, thanks so much for your assistance

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with the generally accepted maintenance schedules for a number of farm machines.

Mr. Palmer Matutu (a.k.a “Mr. Pal” or simply “Pastor”): Your assistance with the use of and expertise in Microsoft Office Excel and assistance with farm budgeting are just about impeccable. Truly grateful for your input sir. Thanks as well for the abundant supply of information contained in the rich document you researched titled Report. It helped immensely in the write up of chapter one of this Farm Business Planning Project...

All the above – and other unmentioned people- were the giants on whose sturdy shoulders this individual was privileged to stand on. In the immortal words of Shakespeare: “I can no other answer make, but thanks and thanks, and ever thanks.”(William Shakespeare)

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List of abbreviations: P - = An operation in a farm cropping enterprise to be done a certain number of days before the sowing/planting of that crop in question. For instance, soil tests for commercial can and normally should occur at between P – 90 to P -150; simply means that soil tests for commercial maize should be carried out some three to five months prior to planting.

P +0 = The planting operation/date of a particular feed crop.

P + = Operations done after the planting of a crop, such as, for instance, top dressing.

M.O.P = Main operating procedure; that is, one of the core/key or critical management practices which must be imperatively done so as to ensure success in a given farm enterprise.

S.O.P = Standard operating procedure. The definition is identical to that of M.O.P as outlined and defined above.

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Table of figures: Figure 1 Columnar chart presentation of monthly rainfall at Kent Estate between the 2005-6 and 2010 – 11 agricultural seasons........................................................................................- 8 Figure 2: Columnar char presentation of aggregate seasonal rainfall at Kent Estate between the 1998-99 to 2013-2014 agricultural seasons.....................................................................- 8 Figure 3: Temperature graph showing monthly temperatures between the 2009-10 and 201314 agricultural seasons at Kent Estate:................................................................................- 14 Figure 4: The organogram at Kent Estate (correct as at December 2014 C.E. ) :...............- 22 Figure 5: Being channel of commercial potato flow...........................................................- 53 Figure 6: Being channel of commercial maize flow............................................................- 54 Figure 7: Being commercial beef production flow.............................................................- 55 Figure 8: Being pie chart showing a thorough analysis of total variable costs incurred over the course of the 2014-15 agricultural season at Kent Estate....................................................- 64 Figure 9: Being a figure showing a comprehensive break-down/analysis of total fixed costs to be incurred at Kent Estate over the course of the 2014-15 agricultural season..................- 66 -

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List of tables: Table 1: Monthly rainfall figures at Kent Estate between the 2005 - 6 to 2010 - 11 agricultural seasons:..................................................................................................................................- 6 Table 2: Aggregate rainfall (mm) at Kent Estate as per each agricultural season from 1997-98 to 2013-14..............................................................................................................................- 7 Table 3: Recommended Seed- Co commercial maize varieties for each natural region of Zimbabwe............................................................................................................................- 10 Table 4: Nitrogen fertilizer recommendations (kg/ha) for different yield potentials/targets of commercial potatoes under irrigated production on soils of different clay content:...........- 18 Table 5: Summary of farm production plan at Kent Estate:................................................- 25 Table 6: Proposed five year crop rotation schedule for Kent Estate:..................................- 27 Table 7: Commercial tobacco float tray seedling requirement on a per hectare basis:.......- 28 Table 8: Being typical field requirements of tobacco (lands) on a per hectare basis:.........- 31 Table 9: Being main operating procedures carried out in commercial soya bean production:..35 Table 10: Being main operational procedures carried in commercial pea production:.......- 38 Table 11: Being feed consumption and target wights of commercial broilers at Kent Estate:. .39 Table 12: Showing/summarizing farm implements currently on the ground at Kent Estate: - 43 Table 13: Showing/summarizing farm structures currently on the ground at Kent Estate:.- 45 Table 14: Showing/summarizing irrigation equipment on hand at Kent Estate:.................- 47 Table 15: Showing/summarizing the capital equipment expenditure budget over the next halfdecade at Kent Estate:.........................................................................................................- 47 Table 16: Highlighting basic repairs and maintenance schedule at Kent Estate:................- 49 Table 17: Showing a summary of the farm production and expected financial return per enterprise at Kent Estate:.....................................................................................................- 60 Table 18: Showing the capital outlay needed to both maintain and raise the levels of production and productivity at Kent Estate.........................................................................- 61 Table 19: Being a table showing the variable costs to be incurred at Kent Estate over the course of the 2014/15 agricultural season:..........................................................................- 62 16

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Table 20: Being total fixed costs incurred at Kent Estate over the course of the 2014-15 agricultural season...............................................................................................................- 65 Table 21: Showing analysis of gross margins projected to be realized by the farm enterprises at Kent Estate over the course of the 2014-15 agricultural season......................................- 66 -

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List of appendices: 1) Appendix 1: Price list for 2014/15 Agricultural season.

2) Appendix 2: Irrigated Tobacco Production budget for 2014-15 agricultural season.

3) Appendix 3: Dryland Tobacco Production budget for 2014-15 agricultural season.

4) Appendix 4: Dryland commercial maize production budget for 2014-15 agricultural season.

5) Appendix 5: Commercial potato production budget for 2014-15 agricultural season.

6) Appendix 6: Irrigated commercial pea production budget for 2014-15 agricultural season.

7) Appendix 7: Dryland commercial soya-bean production budget for 2014-15 agricultural season.

8) Appendix 8: Beef production budget for the 2014-15 agricultural season.

9) Appendix 9: Housed broiler production budget for the 2014-15 agricultural season.

10) Appendix 10: Fixed cost budget for the 2014-15 agricultural season.

11) Appendix 11: Five-year capital expenditure budget for Kent Estate up to the 2018-2019 agricultural season.

12) Appendix 12: Consolidated yearly cashflow budget for the 2014-15 agricultural season.

13) Appendix 13: Income statement of Kent Estate for the 2014-15 agricultural season.

14) Appendix 14: Balance Sheet for Kent Estate as at August 31st 2015

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CHAPTER 1: INTRODUCTION AND BACKGROUND INFORMATION

1.1 Introduction

Kent Estate is located in the Zimbabwean province of Mashonaland West – a province greatly esteemed for its’ salubrious climate most suited to agricultural production. The farm is no more than a twelve and one half mile drive (approximately a hundred furlongs or twenty kilometres) from a quaint little town/urban settlement known as Norton.

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The farm is currently some thirty-two hundred hectares (or seven thousand nine hundred and four acres) in extent, and, as at the month of August, Roman year 2014 C.E., a total of some five hundred and five hectares (or nearly one thousand two-hundred and fifty acres) was under some sort of agronomic and/or horticultural crop production. Once fallow fields (when the first draft of this farm business planning project was being drafted in November 2014 C.E) are being slated for additional crop production, and most of the remaining land is conducive/suitable for livestock production.

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1.2 Farm production history

To trace the farm production history of Kent Estate is travel way back – generations back- in time. How far? Well, to the near nascence of the colonial era of this nation of Zimbabwe. Oral traditions in and around the Norton area have it that the estate was under the ownership of the then Great British monarch, H.R.H. Queen Elizabeth I. In any event, the estate then spanned at least a mind-boggling nine thousand hectares in extent, mainly focusing on livestock production (mainly beef cattle) as well as agronomic crop production to some extent.

Kent Estate was run under the management of Zimcor Ltd (first listed in 1948) until Roman year 1999 C.E when the baton of ownership and management was then passed onto, or otherwise acquired by Ariston Holdings Ltd (to be more straightforward, there was simply a name change from Zimcor Ltd to Ariston Holdings Ltd).

In 1994, the estate entered into the floriculture industry as a major player as it produced both greenhouse roses (with greenhouses being erected that covered an area of two hectares) as well as hypericums. Over the course of time, the total area under greenhouse rose production rose to five hectares before the government spear-headed and sanctioned land reform program brought about a sea change in enterprise mix and extent of the farm in terms of its total area (both arable and non-arable). After all the dust had settled, the farm shifted from floriculture to horticultural production, with the greenhouses being repurposed to that effect. What is more, the total area of the farm was slashed from over nine thousand hectares (it was nearly twelve thousand hectares in its’ prime) to some three thousand two-hundred hectares at present.

On the livestock production side of things, the estate has historically had a large herd of cattle (typically being over a thousand head of cattle before the land reform program) but as of late, hovering now (at the time of the first draft of this farm business-plan proposal between September and November of roman year 2014 C.E) at about one hundred and fifty to two hundred head of beef cattle. Historically, the farm has always been a major contracted producer of poultry (broilers), with it being one of the largest contracted producers under Irvines. The estate typically produces over a million birds per annum under contract with Irvines.

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On the agronomic facet of things, the estate typically has large tracts of land under such staple and strategically important food and field crops such as maize and other summer agronomic crops such as commercial soya beans (a typical summer crop stand being over two-hundred hectares in total extent per season).

Importance/implication of farm production history: The importance of production history in farm business planning, is not necessarily to tell an entertaining story, but to really see or proactively prepare for opportunities and/or threats in light of the history of the farm. For instance, here at Kent Estate, because rose and hyperricum production had been engaged in for at least five years, and now potatoes and other solanaceous crops (mainly greenhouse tomatoes and pepper) play such a key role in being some of the cash-cows of the farm, particular attention (in terms of agronomic practices and management) had to be paid (at least in the early years) to aphids, and potato aphids in particular. It is known that potato aphids are a particular pest problem for late winter irrigated potato crops. These aphids usually, find alternate hosts in the rosaceae (that is, the rose and hyperricum) family in autumn and spring, and attack potato crops in winter (Source: article How to Successfully Grow Potatoes by agronomist Dr. L. Gono; http://windmillfarming.blogspot.com/2014/07/how-to-successfully-grow-potatoes.html ; accessed December 5th, 2014). Thus, particular attention had to be paid in regard to this major pest of potatoes due to the fact that the estate had a history of rose and hyperricum production.

Another example of how and why farm-production history is important in informing good and prudent agronomic practices so as to enhance chances of enterprise profitability was when, soon after the land-reform program, the estate had to open up prior pasture lands to summer crop production. With the knowledge that these lands had not been under any prior cropping, particular attention was paid to ensuring that phosphate rich fertilizers were applied so that the low-levels of phosphates in the soil prior to cropping would not compromise yields and crop quality (as phosphate levels affect root development in plants). With time however, as phosphate levels built up due to a regular rhythmic cycle of cropping having been firmly established. (Source of information: page 4 of The Farmers Handbook – An instructional handbook to assist farmers in the production of high yielding crops; 2004 Zimbabwe Fertilizer Company, Harare, Zimbabwe) 23

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Thus, in the example of the two cases and so many other myriad of ways, a knowledge of farm production history does not only make for an interesting story, but also informs future decisions which can help bolster enterprise and farm viability in the present and going forward.

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1.3 Farm agro-ecological conditions

Kent Estate is situated/located in natural region II b. This has seen it historically receive any where between twenty-eight to forty inches of rainfall per annum.

In the sub-heads to follow, other key aspects of the farm agro-ecological conditions will be most briefly covered.

1.3.1

Rainfall

As already noted just above, the estate is situated in natural region IIb, which has seen it historically receive between twenty-eight to forty inches of rainfall per annum.

Natural region IIb typically receives between sixteen to eighteen rainy pentads per season, but is subject to the nadirs of mid-season dry spells which can negatively affect crop yields if not managed well.

The bulk of the rainfall is received through the three months of November, December and January, with the rest being received in October, February and March (seldom is there much noticeable rainfall in April).

Below are some tables giving rainfall statistics for the estate:

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Table 1: Monthly rainfall figures at Kent Estate between the 2005 - 6 to 2010 - 11 agricultural seasons:

Year

Sep Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

2005 to

0.0

0.0

60.65

251.4

248.6

102.4

94.6

0.0

0.0

0.0

0.0

0.0

0.0

45.4

104.33

64.0

122.33

89.83

39.2

99.5

0.0

0.0

0.0

0.0

0.0

9.0

120.64 355.4

139.31

203.61 51.48

0.0

0.0

0.0

0.0

0.0

0.0

0.0

39.25

162.5

96.75

58.2

0.0

0.0

0.0

0.0

0.0

0.0

2006 2006 to 2007 2007 to 2008

2008 to

224.45

199.45 0.0

5 2009 2009 to

0.0 26

0.0

42.0

136.62

240.0

95.69

84.32

39.99

0.0

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2010 2010 to

0.0

28.3

70.0

114.64

276.3

95.0

29.0

0.0

0.0

0.0

0.0

0.0

2011

Table 2: Aggregate rainfall (mm) at Kent Estate as per each agricultural season from 1997-98 to 2013-14

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Seasons

Year Totals (mm)

1997-1998

771.67

1998-1999

1153.26

1999-2000

996.73

2000-2001

969.10

2001-2002

535.1

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2002-2003

681.37

2003-2004

885.95

2004-2005

543.22

2005-2006

757.65

2006-2007

564.59

2007-2008

879.44

2008-2009

780.65

2009-2010

640.57

2010-2011

637.36

2011-2012

691.76

2012-2013

504.46

2013-2014

635.90

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Figure 1 Columnar chart presentation of monthly rainfall at Kent Estate between the 2005-6 and 2010 – 11 agricultural seasons.

Figure 2: Columnar char presentation of aggregate seasonal rainfall at Kent Estate between the 1998-99 to 2013-2014 agricultural seasons.

(Source of rainfall statistics courtesy of Mrs. Susan Muchingami and Mr. Kelvin Makina of the summer-crops department at Kent Estate).

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As is plainly vindicated in the tables and figures supplied in the previous pages, Kent Estate is veritably situated in natural region IIb. The data tabulated and otherwise presented above clearly shows that the bulk of the rainfall is received between the months of November through to January, followed by a brief intermission/mid-season dry-spell, with the rest being received between the months of February and March. Again, at times, if the heavens are feeling munificent, some early rains may fall in October, and not oft does it rain in April, but at times the heavens may relent their as well. As the data also shows, true to natural region IIb form/nature, average annual rainfall typically hovers at the twenty-five to twenty-eight inches per annum range.

Importance and implication of Rainfall in farm business planning: What is the importance of considering rainfall patterns and seasonal aggregates in farm business planning? There is much, especially in the case of dry-land farming. For instance, because commercial maize is such an important staple crop in the nation of Zimbabwe, by knowing the general patterns which exist in the natural region of the nation in which they reside, one may make a wise choice of seed variety (be it long-season variety in the wetter, more salubrious regions or shorter season varieties in the drier regions) so as to avert total crop failure and loss of capital invested into that dry-land commercial maize enterprise.

Below is a table showing which Seed-Co commercial maize seed varieties are optimally suited for each agro-ecological zone/region with annual rainfall being the main limiting factor in variety selection choice:

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Table 3: Recommended Seed- Co commercial maize varieties for each natural region of Zimbabwe

Natural

Brief

Variety of Seed-

Yield potential

Recommended

ecological

description of

Co Commercial

of that variety.

plant

region/zone.

region.

maize seed

population for

recommended

those varieties.

I

Specialised and

Under excellent

Upper limits are

management,

50 000 to 60 000

farming region

upper limits are

plants per

capable of

thirteen to

hectare.

profitably

eighteen tons

supporting and

per hectare

diversified

sustaining (if managed well) all conceivable commercial agricultural enterprises.

Region is characterised by high rainfall of over forty inches per annum in areas lying below 1700m above datum level of that 31

for that region.

- SC 719 - SC 727 - SC 637

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II

region.

Intensive

-SC 637

With great

Again ranging

farming region.

-SC 719

management,

from fifty to

A slightly

-SC 727

upper limits are

sixty-thousand

narrower scope

again thirteen to

plants per

of commercial

eighteen tons

hectare.

agriculture

per hectare.

enterprises can be engaged in here (for instance a number of pomology enterprises would not be deemed suitable for this natural region), but with excellent management, the enterprises suitable for engaging in here, may be done so intensively, and so yield much profit.

Rainfall typically ranges from 30 to 40 inches per annum.

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III

IV

Semi-intensive

-SC 633

Upper yield

Plant

farming region.

-SC 627

limits – with

populations per

Still receives

-SC637

exceptional

hectare are

moderately high

management-

generally

levels of rainfall

are from ten to

recommended to

(typically

thirteen tons per

be between fifty

ranging between

hectare, and

to fifty-five

25 to 32 inches

lower yield

thousand.

of rainfall per

limits under that

annum), but

same

higher

management are

temperatures

between five to

tend to reduce

six tons per

the efficacy of

hectare.

that rainfall.

Semi-extensive

-SC 513

Upper limit

-Recommended

farming region.

-SC 533

under

plant

Aggregate

exceptional

populations per

rainfall is in the

management is 8

hectare are

low to medium

to 9 tons per

betwixt 44 to 50

range of

hectare. Lower

000 plants per

eighteen to 23

limits under

hectare.

inches per

good

annum. There is

management are

also a tendency

4 to 5 tons per

to have

hectare.

prolonged dryspells and susceptibility to drought. High temperatures again hamper the efficacy of 33

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V

available rain.

Rainfall is far

-SC 403

Under

-Between 44

too low for most

-SC 533

meticulous

000 to 60 000

commercial

management,

plants per

cropping

one may realize

hectare.

enterprises, but

yields of up to

with the

five or six tons

development of

per hectare. It is

short and ultra-

prudent though,

short season

to expect yields

commercial

of three or so

maize varieties,

tons per hectare.

some cropping may be done in addition to livestock enterprises.

(Sources of information for the table supplied above are, the Seed-Co Product Flyer 2013/14; the Seed-Co Retail Price List for the 2013-14 summer cropping season, as well as page 6 of the book, Production Without Destruction by Helen L. Vukasin et al (1995, Natural Farming Network, Harare, Zimbabwe). )

In essence therefore, rainfall is the chief determinant (especially in dry-land farming) which sets the lid or cap on both yield potential of dry-land crop enterprises, as well as the diversity and intensity of all considered cropping enterprises. Hence, it is most important to consider.

34

35

1.3.2

Temperature:

Temperatures in this natural region are mostly salubrious throughout the year, generally within the band/range of eighteen to twenty-six degrees centigrade. The advantage of such temperatures is that it allows for the better sequestration and filtration of the rainfall into the soils, allowing rainfall to be more effectively utilized by the soils.

On the flip side, winters can be deemed to be rather chilly, with average temperatures ranging from between six to seventeen degrees centigrade. These temperatures make for a good winter-cropping regimen.

35 30 25 20 15 Temperature/cยบ 10 5

2009/10 2010/11 2011/12 2012/13 2013/14

0 -5 -10

Figure 3: Temperature graph showing monthly temperatures between the 2009-10 and 2013-14 agricultural seasons at Kent Estate: (Source of information: Mr Mutana of Chibero agriculture college).

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36

1.3.3

Altitude:

The estate is situated in the Highveld of the nation, as its’ height above datum level is approximately some 1280 meters. This fosters cooler and more salubrious temperatures ideal for intensive agricultural production. What is more, altitude can also help curtail pest pressure on some cropping enterprises. For instance, potato crops in the high-veld areas of the nation are known to usually have lower prevalence or pressure from tuber-moths.

1.3.4

Soils:

The soils of the estate are characteristic red clays which tend to be stiff and sticky when wet.

They generally range from an upper percentage of thirty-percent clay content, to a lower percentage of fifteen percent clay. Their average effective depth is approximately one meter.

Most of the arable lands are situated where there is a slope of between two to five percent, hence erosion is slight, and required conservation measures are typically minimal.

Importance/Implications of soil(s) data: Data or facts concerning soils is very important in farm business planning and farm enterprise budgeting for a variety of reasons: 1) It affects enterprise management and agronomic practices: Take for instance, the knowledge of soil texture when it comes to commercial maize production. Generally, it is known that sandy soils tend to be short of the trace element zinc, which will affect the quality of the harvested crop. Because of this, it is important for farmers who are farming in such light textured soils, when producing commercial maize, to make use of zinc enriched compound maize fertilizers, such as, for instance, ZFC Sand Maize Fert. (Source of information: The Farmers Handbook, pages 5 and 7).

As another example, the pre-emergent broadleaf herbicide Metribuzin cannot be applied on potato crops which are being grown in a soil of less than 12% clay content.

The result could be a severe scalding of the potato crop (Source: Windmill Pvt. Ltd. 1 hectare guideline for potatoes) 36

37

2) Soil texture information can also play a role in selecting which varieties of a particular crop to grow as well as which markets to target. For instance, in potato production, “Sandy soils, which contain little clay or organic matter and have almost no soil structure, when properly irrigated and fertilized, will produce high yields of tubers with excellent culinary and processing quality.�(Source: Gono, article How to Successfully Grow Potatoes) In Zimbabwe, the varieties known for good chipping and culinary quality are the likes of Pimpernel and Amethyst. Cairns Foods Limited used to pay particular attention to the pimpernel variety, but this has changed of late.

3) Soil texture information can also play a role in informing a farmer of likely pest pressure: For instance, if a farmer is situated on a farm with a wide variety of soils, they would most likely be advised to plant nematode prone crops such as tomatoes and potatoes, on the heavier textured soils as they are less accommodative soils to nematodes.

4) Soil texture information can also inform one as to the amounts of herbicides they should apply for a given cropping enterprise: The general rule of thumb is that the greater the clay content of a given soil, then the greater the application of a given herbicide.

5) Soil texture information can also inform one as to how much inputs they should invest in a given cropping enterprise: For instance, in a potato enterprise, the general rule of thumb is that the greater the clay content of the soil, then the more one should incline in choosing a longer season, higher yielding variety of seed to plant as the yield potential is greater. Furthermore, one will also be apprised/informed as to the general fertilizer application rates for a targeted yield on a soil of a given clay content; in general though, the nitrogenous requirements per ha for a given yield target are lower in heavier textured soils. Below is a table showing the general nitrogenous requirements (in kilograms per hectare) for a targeted yield potential for a given crop:

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38

Table 4: Nitrogen fertilizer recommendations (kg/ha) for different yield potentials/targets of commercial potatoes under irrigated production on soils of different clay content: Clay content

Yield Potential (t/ha) 30 tons/ha 40 tons/ha 50 tons/ha 60 tons/ha 70 tons/ha 80 tons/ha

(%) < 10 170 220 250 275 300 320 10 â&#x20AC;&#x201C; 20 150 190 220 240 260 280 >20 130 160 180 200 220 240 (Source: Fertiliser Society of South Africa (FSSA); 2003, Soil Sampling Fertilizer Handbook, Sixth Revised Edition) And other reasons besides...

1.3.5

Vegetation:

The layout of the vegetation is characteristically/chiefly tree bush savannah. The most dominant tree species within the area is the Brachystegia and Acacia species. The Brachystegia species occupy the hilly and rocky areas of the estate. Acacia species are predominantly found where the ground is quite flat and suitable for cropping. The flat natural grazing lands are characterized by Hyparrhenia grasses which are the widespread type of grass within the estate. Heteropogon contortus is also found in areas with the Brachystegia and Acacia tree species but is not common as the Hyparrhenia. Cynodon niemfuensis is fast becoming one of the most dominant grass species as it is encroaching into the non pasture lands, but formerly it was introduced into pasture lands as an improved pasture grass for livestock.

Wild-sunflower is also encroaching into more of the non-arable lands as veldt-fires are becoming more common in the vicinity as the newly settled A1 and A2 farmers are failing to properly control and contain the fires which they would have started.

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39

1.4 Water Resources:

The main stream within the estate is Saruwe which runs in a southern direction. The estate has four reservoir dams which help supply water for irrigation of crops as well as drinking water for livestock. Of late, a number of boreholes have also been drilled to aid in the irrigation efforts of the farm, especially for the horticultural crops. As at October of roman year 2014 C.E., some twenty-two boreholes had been drilled, but only half were operational at the time.

At time of this chapter having been relooked at and redrafted (early January of 2015) the remaining boreholes were now operational.

Importance of water resources information: Wildly popular late 80’s and early 1990’s rhythm and blues quartet Boyz II Men once famously sung a hit song titled Water runs dry. The title of that well-received song perfectly encapsulates why accurate information concerning water resources is key. Such information will help ensure that there is no shortage of water for livestock sustenance as well as crop irrigation. Below is information supplied from the borehole drillers and pump suppliers for the irrigation equipment at Kent Estate. The company is called Mightyflow Irrigation (Pvt) Ltd. Below is information which one of the firm’s employees – an alacritous gentleman named Simba- supplied via e-mail correspondence to this student (if any of the assessors need a copy of that missive, they are free to obtain it from this student upon request. Thanks.)

“Borehole pump specifications:” “Discharge (Q) – 25 cubic meters per hour to 30 cubic meters per hour.”

“Power - 15 horse-power.”

“Head – 90 meters” “Borehole recharge:” “Recharge differs according to the siting of the borehole and the recharge rate of 1 borehole is 9 cubic meters per hour to 22 cubic meters per hour for other boreholes.”

39

40

“If 6 pumps are sufficiently recharged enough from the aquifer they can be able to feed the reservoir and provide enough water for the 40 hectare fixed center pivot which requires a flow rate of 151.6 cubic meters per hour.”

What the above information equates to is that, for every 12 hour irrigation cycle, the 40 hectare centre-pivot can irrigate up to a soil depth of 4.5 to 5 mm per hectare. Given the fact that a typical potato crop requires, “A minimum of 400 mm of well distributed water...to grow the crop to maturity.”(Source: page 28 of the Horticulture production notes of Mrs. J. Mapfumo; ellipses those of this student), over a fourteen or so week period, and the borehole acquifers can adequately recharge within a twelve hour period (as each one will at least recharge by about 108 cubic meters within 12 hours, and the pivot flow rate is 152 cubic meters per hour), the potato crop can be safely irrigated to maturity. Thus, throughout the year, there is more than enough moisture to irrigate potatoes to maturity.

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41

1.5 Farm organisational structure:

The estate is comprised of six departments namely; horticulture, poultry, livestock and crops, workshop, security and finance and administration department.

1.5.1 Farm ownership structure: The estate is a wholly owned subsidiary of agri-business conglomerate Ariston Holdings Ltd. It has been a subsidiary of the conglomerate since roman year 1999.

1.5.2 Organogram:

Below is an organogram showing the relationships between the roles of staff at the estate:

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42

Figure 4: The organogram at Kent Estate (correct as at December 2014 C.E. ) : Estate Manager

Horticulture Accountant

Manager

Livestock & Crops

Workshop

Poultry

Manager

Manager

Manager

Security Officer

Supervisors

Safety and health officer Buyer

Bookkeepers

Supervisors

Artisans

Forepersons

Staf

Staf

Staf Guards

The above organogram shows the clear relationships and chain of command which exists at the estate, thereby expediting timeous execution of duties and time-sensitive operations.

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43

1.5.3 Working Conditions:

In terms of compensation/remuneration, the estate strives to pay farm workers rates that are in compliance of recommended minimal stipulations of the Agriculture N.E.C. labor day wage scale.

1.6 Conclusion: In all, Kent Estate has a rich heritage (both agriculturally and orally/historically) and is endowed with a salubrious climate fit for much productive farming.

(NB: Special mention must be made of a certain aforementioned gentleman who was named in the acknowledgment section of this farm business planning project as Mr. Palmer Matutu.

Mr. Matutu kindly lent this student a document steeped/filled with salient history concerning Kent Estate. The document was simply titled Report .It was from this document that this student was able to be furnished with the raw material to be able to narrate the early fascinating history of Kent Estate. Another rich document which this student was also able to draw from was an excellent article written by Drs. M.S.D Mutopo and A.J. Masuka titled Opportunities and Prospects for horticulture in Zimbabwe, the Ariston Experience. The article appeared in page 70 of the August 2013 issue of the Zimbabwe Agricultural Show Magazine).

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44

Chapter 2: Farm Production Plan:

“While the earth remains, seedtime and harvest, and cold and heat, and winter and summer, and day and night shall not cease.”(Genesis 8vs22; Revised Standard Version)

2.1 Introduction:

“Order is heaven’s first law” goes a profound and sagacious saying. Riding on the coat-tails of that sagacious maxim/saying, this chapter seeks to lay out the “order” – the physical farm production plan- at Kent Estate.

2.2 Summary of physical farm production plan:

“...sealest up the sum...”(Ezekiel 28vs12 King James Version) Below is a table summarizing – in essence “sealing up the sum” of the physical farm production plan to be taken up at Kent Estate.

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45

Table 5: Summary of farm production plan at Kent Estate: CROP/LIVESTOC

HECTARAGE/No.

TARGET

TOTAL TARGET

K Enterprise COMMERCIAL

OF ANIMALS 50 (25 ha dry and 25

YIELD/Ha 2500 kgs per ha

YIELD Total yield from the two

TOBACCO

ha irrigated)

irrigated and 2000

enterprises is 112 500

kgs/ha dryland

kgs or an average of

COMMERCIAL

40 (irrigated)

20 tons/ha

2250 kgs/ha.

800 tons

POTATOES COMMERCIAL

40 (irrigated)

5 tons/ha

200 tons

PEAS COMMERCIAL

10 000 per batch.

9 000 live birds after

90 000 birds per annum

5 weeks.

from a cumulative

BROILERS (COBB 500 breed)

placement of approx

COMMERCIAL

272 kilograms of cold

100 000 birds per year.

At least 40 800

dressed mass per

kilograms of cold

fattened beast.

dressed mass beef sold

150 steer herd.

BEEF

COMMERCIAL

250 ha.

6 tons/ha

per annum.

1500 tons.

MAIZE COMMERCIAL

200 ha

3 tons/ha

600 tons.

SOYA BEANS

The above table shows fully (and at a momentâ&#x20AC;&#x2122;s glance) the proposed enterprise mix which this student plan on undertaking at Kent Estate, and which he will more fully expound on in the pages to follow.

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46

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47

2.3 FIVE YEAR CROP ROTATION PLAN:

The following is a crop rotation plan over a half decade period/span over an arable area of approximately 300 hectares. The reason/rationale behind a crop rotation plan is to obtain optimal yields for the given cropping enterprises while mitigating pest and disease pressure.

As the pithy saying goes, “Variety is the spice of life.” And in the case of farm production, it maintains the “spice” or vitality of the farm land, ensuring a resource which can be profitably exploited both here and now, and which will also be passed onto posterity for them to parlay and produce as well.

Table 6: Proposed five year crop rotation schedule for Kent Estate: FIELD

YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

SIZE #1: 25

Dry land

Commercial

Dryland Tobacco Commercial

Ha #2: 40

tobacco Commercia

Maize Commercial

Commercial

Maize Commercial

tobacco Commercial

Ha #3:

l Peas Commercia

Potatoes Commercial

Peas Commercial

Potatoes Commercial

Peas Commercial

200Ha #4: 25ha

l Maize.

Irrigated

Soya beans.

Commercial

Maize.

Irrigated

Soya Beans.

Commercial

Maize.

Irrigated

tobacco.

Maize.

tobacco.

Maize.

tobacco.

#: AREA

47

Dry land

48

2.4 FIELD/ Summer CROP PRODUCTION PLAN:

2.4.1 Tobacco production:

50 hectares of commercial tobacco is to be planted this agricultural season; with 25 hectares apiece being dry-land and irrigated crops respectively. What follows now is an encapsulated summary of the main operational procedures (MOP’s) which need to be carried to typically/successfully see a tobacco crop all the way through to sale on the auction floors.

MATERIALS REQUIRED ON A PER HECTARE BASIS/SCALE OF TOBACCO: Table 7: Commercial tobacco float tray seedling requirement on a per hectare basis: Materials Trays Seed Black Plastic (75 μm) 2.4 m

Amounts/Quantities 72 20 000 pellets/ 3 g raw 34 m2

width Clear Plastic covers (75 μm) 3 m

35 m2

width Growmix No. of bricks (standard bricks) Floatfert Ammonium Nitrate Acephate (pest control) Confidor 200 SL or Actara 25 WG Baytan (sore shin control) Wire hoops Water

540 L 6x90 L 350 6L 500 g 30 g 100 ml 80 g 108 g 48 m 1 700 L

NB: Clear plastic and wire hoops required only for irrigated crop seedlings Activities to be carried out at the float tray stage: 48

49

-Seed coat with an aphicide and protect for six weeks after sowing.

-Apply 1 litre floatfert at 7, 2 litres at 21 d.a.s. and 3 litres at 35 days after sowing (for 242 cell trays).

-Apply 500 g AN (top dressing) at 42 days after sowing (for 242 cell trays).

-Maintain water at 10 cm depth throughout the float-bed life.

-Plug and transfer seedlings to empty cells at 2-3 leaf (when raw seed has been used).

-Clip so as to maintain seedling uniformity.

-Hand pull weeds frequently so that seedlings are not choked.

-Be especially sure to watch for signs of Pythium disease and insect (cutworm) damage as well as salt injury damage.

-Confidor can be applied together with Baytan 48 hrs before transplanting for aphid control in the lands.

-For algae apply any one of the following; namely copper oxychloride at 24 g/ha, Sporekill at 592 ml/ha or Pentakill 355 ml.

-For pythium species control, one should be sure to use metalaxyl at 250 g/bed Labor requirement at seedling production stage: -Tray filling requires approximately 143 trays per person per day.

-The sowing of pelleted seed requires the work of some 150 trays per person per day.

-The plugging and transfer for raw seed requires some 40 trays per person per day.

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Table 8: Being typical field requirements of tobacco (lands) on a per hectare basis: Item EDB technical/Aldicarb Chlopyrifos 48 % Fenverelate 20 EC Confidor 20 % (planting hole aphicide) Metalachlor/Sulfentrazone/Clomazone/Alachlor N-Decanol Tabamex Tobacco fert (Compound C) based on soil analysis Ammonium Nitrate/ Calcium Nitrate Agricultural lime-based on soil analysis Coal Wood (if not using coal) Propak Hessian Pairs Tobacco paper Twine

Quantity/ha 45 L/ 15 Kg 1L 90 ml 220 ml/ 100L 2.3/0.425/1.5/3.0 L 4.0 litres 3.0 litres 700 Kg 150 Kg/ 260 Kg 600 Kg 6.25 t 10-15 cords (1.2x1.2x2.4 m) 50 1 roll 1 roll

Please do note the following: -That where the use of EDB is not practical, one may alternatively use Aldicarb and nematode resistant varieties (such asT64, T29, T66, T65 and T60) with supplementary nematicides (e.g. Fenamiphos 40 EC 800 ml/100 L or Granular Fenamiphos) and practice recommended rotations (e.g. Katambora grass, Commercial maize, et cetera).

(Source of information for tobacco production M.O.Pâ&#x20AC;&#x2122;s was courtesy of Mr. Russell Tawanda Muzhandu, a nematologist, employee of Ariston Holdings Ltd. and farm production manager based in Chipinge).

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2.4.2 Maize production plan:

250 hectares of commercial maize is slated to be planted this agricultural season. Below is a tabular summary of the main/chief operational procedures to ensure that the crop stand will be successful: Table 2.5 Main operating procedures in successful commercial maize production.

(Source of information: The minds of Mrs. Susan Bumhira and Mr. Kelvin Makina) There is not much to comment on which is not at hand in the tabular summary of main operations above. The only relevant addition for the purposes essential to the subject matter of this treatise would be that the seed variety used here is that of Seed Co SC 627. The main advantage of this variety, is that in natural region IIb which is habitually affected by midseason dry-spells, this variety of commercial maize matures at least ten percent faster (taking 51

52

on average, 144 days) as compared to the Seed Co SC 727 variety (which takes `160 days on average). The result is less exposure to risk as the growing period is shorter, whilst there is still high potential of high yield (up to ten tons per hectare with this variety) (Source: Seed Co 2011- 2012 Maize Product Flyer).

2.4.2 Commercial Soya Bean Production:

In rotation with commercial maize will be 200 hectares of commercial soya beans. Below is a tabularized summary of the major operations carried out/performed to ensure a productive and successful crop:

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53

Table 9: Being main operating procedures carried out in commercial soya bean production:

(Source of information: The minds of Mrs. Susan Bumhira and Mr. Kelvin Makina) With soil and ph testing having being factored into the M.O.Pâ&#x20AC;&#x2122;s (main operational procedures), generally, when all things are kept constant, Kent Estate is a prime candidate for productive soya-bean production as the soils (as previously indicated and noted in chapter 1) are heavy clays. This makes them less acidic in nature (again, all things being held constant) and a more capable reservoir for nutrient retention.

The variety to be used is Seed Co Safari, which, at A.R.T. Farm (according to the farm manager on the production side, who, at the time of this project draft, was a certain Mr. Gombera) is capable of yielding up to 4.5 tons per hectare. Here, the target yield budgeted yield is that of 3 tons per hectare. Whilst it is true that Seed-Co Safari is (soya beans) rust susceptible, when this student was privileged to go on a field trip tour with colleagues to 53

54

A.R.T farm on January 29th of 2014, Mr. Gombera noted that on a partial gains/losses budgeting basis, the cost of applying a prophylactic fungicide such as Opera will cost the amount of 50 kgs of soya beans yield per hectare (approximately $35 per hectare in application), but generally result in a yield that is some 500 kgs per hectare (or $350 per hectare if one is to peg soya beans at $700/ton). Thus, the trade off in choosing a rustsusceptible variety under the auspices of capable management is more oft than not a judicious choice.

2.5 HORTICULTURE PRODUCTION PLAN:

2.5.1 Potato production The fertile soils of the farm offer prime conditions for potato production as the crop is a heavy feeder of nutrients, especially potash.

40 hectares of potatoes will be in production under conventional tillage. A potato planter will be used to apply Potato Blend, basal fertiliser, at (give or take, and depending on soil analysis results) 1800kg/Ha based on the land history of the farm and soil sampling results. Only sprouted tubers of a selected uniform size will be used. Maximum sprouting results are obtained by the use of gibberrelic acid. Generally, 100 % sprouting will be deemed when there are about 5 sprouts per tuber.

Potato top, Omniboost, Kelp-P- Max, Alexin and Potassium Nitrate are amongst the additional fertilisers used at recommended rates from the results of leaf sampling so as to improve crop quality and maximise yields.

All chemical control will be done weekly based on scouting results with chemicals being regularly rotated to avoid a build up of resistance. Cultar, a growth regulator to minimise vegetative growth in favour of tuber growth will be applied at flowering.

Irrigation will take place from planting with the crop averaging ten cycles. Potatoes are sensitive to excess moisture especially in early development of the crop where it can cause rotting of tubers (seed). A total of at least 400 mm of moisture will be needed to see the crop up to maturity 54

55

Harvesting is done by a potato digger when scouting results have shown the skin of tuber has sufficiently hardened to reduces physical damage at lifting as this increases the storage quality of tubers, as well as the prevention of lenticels. Harvested tubers are stored in a cool dry place.

(Source of information under this sub-head is courtesy of the horticulture production notes of Mrs. J. Tapedzisa, senior lecturer of the crops department at Blackfordby College of Agriculture).

2.5.2 Peas production:

Peas are an ideal winter crop. They are leguminous and thus in effect “plough back” so to speak or deposit precious nitrogen into the crop which can be parlayed for better yields in the crop to follow. The moisture requirement for peas is generally low – estimated to be approximately 150 mm (Source: Horticulture lecture notes of Mrs. J Mapfumo (nee Tapedzisa) page 49); this is ideal for ensuring adequate dam and acquifer recharge whilst still maintaining some level of crop production in winter. Below is a tabular summary of the main operational procedures carried out to ensure a successful winter pea crop:

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Table 10: Being main operational procedures carried in commercial pea production:

(Source: The expertise of Mrs. Susan Bumhira and Mr. Kelvin Makina of the summer crops department at Kent Estate).

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2.6 LIVESTOCK PRODUCTION PLAN: 2.6.1 Broiler production:

Poultry production is on a contract basis with Kent Estate arguably being Irvineâ&#x20AC;&#x2122;s largest contractor with two houses which accommodate 150 000 and 120 000 birds respectively.

Broilers are kept all year round with the two houses rotated with one resting while the other is in production. Birds are kept in a deep litter system where birds are completely confined with feed and water being provided ad lib. Birds are sold when they have reached the target weight set by the contractor which usually occurs around 6 weeks old with a maximum mortality of 12%.

The brooder house will be cleaned, disinfected and allowed to rest for two weeks before another batch occupies the house. At least 10 days before the scheduled placement of the birds, coliform and bacterial count tests are taken to ensure that there is no presence of salmonella which will automatically condemn a flock as it is a health hazard to the public. On arrival, day old chicks are to be put into the ready brooders and given water which is mixed with a stress pack to reduce mortality by relieving the stress encountered in transportation.

Birds are then counted and checked for deformities with any chicks possessing such being put in a cull pen and closely monitored for rehabilitation.

Chick feed management will involve use of a four phase feeding program set in relation to target weights.

Table 11: Being feed consumption and target wights of commercial broilers at Kent Estate: Feed

Duration(days)

Feed

Target

Consumed(kg)/bird weight(kg)/bird Pre-starter 0-7 0.160 0.177 Starter 8-14 0.350 0.459 Grower 15-28 1.5 1.436 Finisher 29-Slaughter 0.757 1.8 (Source of figures courtesy of Messrs. Last Kampanje of Kent Estate and Mr. Dominic Sauriri, a technical adviser from Irvines) 57

58

A respectable return per dollar is expected from this particular enterprise, hopefully making it a viable enterprise and large contributor to the income and profits of the farm. One is fully encouraged to have a look at the farm enterprise budgets supplied in the appendix of this treatise. Thanks.

2.6.2 Beef Production:

The fortunes of beef production at Kent Estate seem to have followed those of the nation of Zimbabwe (in a delayed sense that is). Following the 1992 drought, the national herd in Zimbabwe began to take a nose-dive and decline precipitously. Similarly, at Kent Estate, the figurative drought of economic turmoil in the past decade (especially the year 2008 C.E.) saw the beef herd at Kent Estate plummet from a high of nearly 3000 beasts prior to 2008, to a nadir of just 90 beasts afterward. The reason for the plummet was not mismanagement or madness, but simply a desperate measure which had to be resorted to keep the farm afloat as 2008 saw Zimbabwe eclipse Hungary in experiencing the worst hyperinflationary blowout in recorded history. Times have thankfully changed for the better (at least economically) and the beef herd is on the mend as it were. At the time of the first draft of this farm business planning project being prepared, the beef herd had increased to 150 beasts strong.

As the beef herd is slowly but surely being built up, the farm will buy-in and pen fatten 150 beasts each agricultural season, and then slaughter and sell the beasts in terms of their carcass cold mass. The main motivations for the uptake of pen fattening here at Kent Estate are to: -

Increase the degree of fleshing and achieve higher grades of beef.

To take advantage of seasonal high prices.

The steers will be bought in from the Solo Mombe farm of Mr. Solomon Zawe, the 2014 local beef farmer of the year as crowned at the 2014 Harare Agricultural Show. He has done well and made a name for himself.

The basic management procedures to look out for after buying the steers and preparing them for fattening are thus: a) To dip the animals a day prior to moving them into the pens (so as to eliminate any ecto-parasitic pressure). b) Dose for helminths (internal parasites). c) Give them Vitamin A injection.

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When in the pens, it is imperative that the beasts gain at least one kilogram of live mass per day, and that clean clear water is supplied to them ad lib (at the very least, 50 to 80 liters per animal per day), as well as wheat straw and maize cobs for roughage (constituting only 20% of the total dietary intake so as to prevent acidosis). The main protein source will be Soya bean seed cake meal of 13% CP (crude protein) content, sourced from National Foods.

Following such procedures will help ensure a profitable pen fattening enterprise.

(Sources of information: Mr. Muchenga, manager of the livestock department at Kent Estate, as well as a document titled Pen Fattening of Beef Cattle published by the Zimbabwe Division of Livestock Production & Development).

2.7 Conclusion: It is hoped that this chapter has pithily sealed up and summarized the farm production plans and processes taking place at Kent Estate. All that has been discussed here in this chapter is quantified in the farm enterprise budgets supplied in the appendices attached to this treatise.

They fit and complement each other like hand and glove.

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Chapter 3: FARM INFRASTRUCTURE DEVELOPMENT PLAN:

3.1 INTRODUCTION: “Successful farmers bury the plow.”(Shadreck Hunduza, senior lecturer of crop husbandry at Blackfordby College of Agriculture; emphasis his) “One machine can do the work of fifty ordinary men. No machine can do the work of one extraordinary man.”(Elbert Hubbard, an eminent early 20th century author , publisher and philosopher) The above pair of quotations under-score the importance of machinery. Merriam-Webster describes a machine and/or machinery as any, “piece of equipment with moving parts that does work when it is given power from electricity, gasoline, etc” or even the muscle and might of human or beast (entry machine). In essence, machines are human created tools which help make work easier for humans to perform and thus scalable. Whilst it is acknowledged that no farm machine is quite as dexterous and as deft as the competent and diligent mind and hands of the “human machine” per se, the main disadvantage is that humans are not as robust and resilient as mechanical machines, making their work less scalable; hence the need for mechanized implements if one is to parlay natural and biological capital resources needed to be agriculturally productive.

In this chapter therefore, one should expect to find the farm infrastructure development plan which this student has in mind for Kent Estate over the present and the next half decade to come. May it prove convincing reading.

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3.2 FARM MACHINERY AND IMPLEMENTS AT FARM: Below is a tabular summary of the farm machinery and implements on the ground at Kent Estate as well as their current state/condition.

Table 12: Showing/summarizing farm implements currently on the ground at Kent Estate: Implement

Number

Condition/Stat

Requirement: Type/Model/Category:

e of repair Tractors

5

(disrepair?): Operational

N/A

1 x 130 hp (Valtra from FARMEC) 2 x 85 hp (Massey Ferguson 385) 1 x 75 hp (Massey Ferguson 375) 1 x 60 hp (Massey Ferguson 260)

Plough

1

Functional

N/A

1 x IMCO 711 3 Furrow plough.

Disc harrows Rippers Boom Sprayers

2

In usable

4 2

condition.

Working.

1 is almost

N/A

1 x 28 disc disc harrow

N/A 1

1 x Duly disc harrow 3 tines 1.8 cubic meter volume

derelict/in need

(sufficient of up to 9

of serious repair

hectares worth of

100 HP Motor

2

All working

N/A

herbiciding).

Dorre and Pitt

and Pump Planters

2

All operational

N/A

1 x six-row maize and soya planter 1 x potato planter.

Combine 61

1

Operational

N/A

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Harvester Trailers

5

Potato Planter 1 Potato lifter 2

Operational

N/A

Working Working

0 0

(digger spinners)

90 cm inter-row spacing models

Corn/Maize

1

Operates

N/A

Africa.

-

Sheller Hammer mill

1

Works

N/A

-

Ridger Motor cycles

1 9

Working.

1 4 are nigh the 4

2 dish Suzuki

end

(125cc)

useful

of

their

from

South

and

Jialing

service

Fuel Bulk storage 3

life.

Working well.

N/A.

5000 L capacity each

tanks Lorries

Fit and fine

N/A

Nissan UD lorries.

All roadworthy

N/A

4 x Nissan hardbodies

tonners) Pickups

(4 2 6

(2700 cc diesel engines)

Mowers Trail

2 Road 2

Working well Working

N/A N/A

2 x Mazda B 2500â&#x20AC;&#x2122;s.

-

graders (Source of information furnished in the table above was courtesy of Mr. W. Madzingautswa, current manager at Kent Estate at the time of this draft).

As the above table succinctly shows, most all the farm machinery is in a workable state of repair. This bodes well in a time-sensitive industry where timing is everything.

3.3 FARM STRUCTURES AT THE FARM: The farm structures at Kent Estate (given the farm history and overview in earlier chapters) are quite aged, and will be due for some major refurbishment. This is particularly so for the poultry houses at the two poultry sites situated at the farm. As of this roman year of 2015 C.E. all the poultry houses will be reaching the ripe old age of twenty-five years. The houses 62

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are showing some serious signs of ageing, and thus due attention should be paid to them in the next half decade definitely. As testament to this statement, sadly circa late 2013 C.E. one of the poultry houses at poultry site 2 caved in and collapsed. Thankfully no one was in the house, and neither were any birds as the houses had just finished serving a batch of birds.

Hence, the issue of poultry house refurbishment is quite an urgent one to say the least.

In terms of farm worker accommodation, there are three separate main compounds dotted around the farm, which can accommodate a total of approximately 600 workers with each house having 4 rooms on average. Each house is shared by being divided into two rooms per family.

Due to increased mechanisation at the farm (and also because one workshop was lost due to partitioning/cordoning off of the estate at the height of the land reform program) a new workshop will need to be built in the next five years or so.

Found below is a table showing the farm structures currently on hand at Kent Estate.

Table 13: Showing/summarizing farm structures currently on the ground at Kent Estate: FARM

DESCRIPTION

STRUCTUR E Tunnel barn Grading Shed Workshop Poultry houses/fowl runs.

50 Ha capacity 120m x 9m (27 bays)

QUANTITY

TOTAL

NUMBER TO

ON FARM

QUANTITY

BE ADDED

2 1 20

NEEDED 1 2 2 20

1 0 1 19 houses will need to be refurbished and and 1 rebuilt.

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3.4 IRRIGATION INFRASTRUCTURE AT THE FARM: The table below shows the equipment used for irrigation at Kent Estate: Table 14: Showing/summarizing irrigation equipment on hand at Kent Estate: EQUIPMENT Centre Pivot Water pump Main line Sprinklers

NUMBER 2 5 50 50

SIZE 8 span 150hp and 100hp 12km worth of mainline.

So far, the irrigation equipment at the farm is in good-order, and should last for the next halfdecade under good and dutiful care.

3.5 Farm Infrastructure Development, Construction and Procurement Plan: The table below pithily highlights the plans as pertains to farm equipment, structures and other capital equipment over the next half-decade.

Table 15: Showing/summarizing the capital equipment expenditure budget over the next half-decade at Kent Estate:

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One may be wondering (and understandably and rightfully so) as to spread of the capital expenditure costs as outlined in the table supplied above. The rationale employed by this student is simple and straightforward (and hopefully correctly). Basically, no capital expenditure was apportioned in the 2014-15 season, as this is the first season to be counted in the five year/half-decade time-span to be looked into. By the time that the end of the 2015-16 agricultural season is reached, a measure of some retained profit and extra cash should be on hand to begin realistically servicing the long-term loan to be taken out for financing the capital expenditures outlined above. Furthermore, capital assets such as ridgers and disc harrows make sense in being bought first, as the impact which they make in contributing to increased scale of farm production is a more immediate and noticeable â&#x20AC;&#x153;shot in the armâ&#x20AC;? so to speak, than, say, on the new tunnel barn proposed. Furthermore, time is still needed to build up the required cash and profit reserves to begin servicing the loans. Another point to add is that the fixed structures are more resilient in being able to be sweated for a longer period before being replaced, where as capital equipment with moving parts is not quite as such.

This is more or less the rationale employed in mapping out the capital requirements which this student deems are necessary at Kent Estate over the next half-decade. More is covered in the fifth and final chapter of this document/treatise.

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3.6 Repairs and maintenance schedule: “A stitch in time saves nine” and “An ounce of prevention is worth a pound of cure” pithily say/quip a pair of relevant maxims. A repairs and maintenance schedule is of the utmost importance in ensuring minimal downtime. Below is a table highlighting the maintenance schedule at Kent Estate.

Table 16: Highlighting basic repairs and maintenance schedule at Kent Estate: Capital asset class

Maintenance/repair

Motorcycles

schedule: Every 2500 to 3000 km interval in conjunction with

Lorries

daily checks.

Every 10 000 km interval in conjunction with daily

Pick-up trucks

checks.

Every 5 000 km interval in conjunction with daily

Tractors

checks.

After every 250 hours of use in conjunction with daily

Irrigation equipment

checks.

After every pea and potato

Farm implements

crop.

After every cropping cycle in addition to regular checks before and after use.

3.7 Conclusion: This chapter has succinctly attempted to summarize the current level of mechanization at hand at Kent Estate, as well as plans/projections of where such levels desire to be taken within the next half decade or so.

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Chapter 4 Marketing plan:

4.1 Introduction: “To create great work, here’s how you must spend your time: 1% inspiration, 9 % perspiration, 90 % justification.”(George Lois, Esquire magazine art director).

Gone are the days when a farmer could solely rely on the production concept and thereby not need to pay too much attention to marketing activities. True, by 2050, world agriculture production will need to increase by 70 percent to cater for the 9 to 10 billion inhabitants projected to be on this earth (Source: page 17 Mounting Worldwide Crisis in Agriculture by Dale. L Schurter, 2013 Restored Church of God, Wadsworth, Ohio U.S.A.); but with the avalanche of technology, disruption and commoditisation can perhaps ensure a scenario whereby there could well be a glut of food supply by that time. For instance, one need only look at how the nascent technology of offshore fracking helped the United States access a treasure trove of oil reserves, which, when they began to be extracted, caused world crude oil prices to tumble. The same could happen in the field of agriculture as more minds and monies are being funnelled into the industry.

The point of the above paragraph? Well, to simply point out the fact that gone are the days when marketing and marketing activities could be smugly overlooked. Technology can commoditise almost any good or service, hence, marketing should become the nexus of any would be-entrepreneur’s activity, hence the 90% justification implied in the introductory quote above.

In this chapter therefore, please expect to find some of the means and strategies to market that which would have been produced by Kent Estate.

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4.2 SWOT Analysis:

SWOT analysis is a four pronged tool used to analyse how the estate will play to its strengths, patch-up itâ&#x20AC;&#x2122;s weaknesses, pounce on opportunities and pull the plug on threats.

S- Strengths One of the key/core strengths which Kent Estate has is the marketing muscle and leverage afforded by itsâ&#x20AC;&#x2122; holding company Ariston Holdings Ltd. As such, it can market and distribute, value add and promote its output on a scale that most all nascent post 2000 local farmers can only envy.

Furthermore, the bargaining power of Ariston Holdings means that economies of scale can be parlayed in terms of reducing unit costs on input orders and the like.

W- Weaknesses.

The main weakness of Kent Estate is a tricky/fault prone power supply from the main grid.

This raises overhead costs as generators need to be kept running and to be maintained.

O- Opportunities The farm will benefit immensely from the low local production of maize as demand will be likely high and prices will also respond accordingly. Furthermore, the estate is well poised to pick up where it left off in sopping up the demand left by those nascent farmers who had a try in sack potato production, but found that it was not the panacea that it was hyped out to be.

T- Threats Some of the emerging threats that are likely to be faced include the influx of genetically modified products from South Africa. These products have a proclivity of glutting/flooding the market and so depressing prices. The vicissitudes of political grandstanding and rhetoric are also another threat as there can be policy conflict and flare-ups of looting and landgrabbing all of which can increase the cost and scarcity of capital.

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4. 3 Channel of product flow from the producer to the market: Below is a figure showing the flow of farm potatoes from Kent Estate: Input suppliers

Potatoes produced at the farm

Local Farm sales at Kent Estate FAVCO Arm of Ariston Holding s

Supermarkets

Consumers Figure 5: Being channel of commercial potato flow.

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Commercial Maize Product Flow Input suppliers Farmer/Producer

Feed manufacturers

G.M.B. Workers. . Private Buyers

Mealie meal in Supermarkets

Customers/ Consumers 71

72

Figure 6: Being channel of commercial maize flow.

Beef Flow Channel Input Suppliers

Farmer/ Producer

private buyers

Surrey Abattoirs

Butcheries/Supermarkets

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Consumers buying beef

Figure 7: Being commercial beef production flow.

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4.4 Marketing strategy: What will now be looked into here will be the pricing strategy, placement strategy, promotional strategy and product strategy.

4.4.1 Pricing strategy The farm will carry out a market assessment for informing the pricing regimen. When lifting the first batch of potatoes for instance, a skimming pricing strategy will be utilized as there will likely be more large and extra large tubers being packaged and sorted in the initial stages of harvesting.

The prices for tobacco will be determined by the competition amongst buyers on the auction floors so the farm will ensure that all tobacco will be perfectly graded and presented for sale.

Prices for corn will be determined by the Government but the farm will sell as much of a portion as is possible to private buyers (such as Delta beverages and National Foods) who offer prompt payment.

4.4.2 Placement strategy The farm will use various strategies to ensure the various products will get to the intended market(s). Some of the products like potatoes and broilers will be sold at the farm gate and will be also transported to FAVCO (Fruit and Vegetable Marketing Company â&#x20AC;&#x201C; the value adding wing/subsidiary of Ariston Holdings). Soya beans will be distributed to private companies and FAVCO itself.

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4.4.3 Promotional strategy: Various strategies will be adopted to promote the farm’s output. The farm will, for instance, advertise through the use of publications, notably the Farmer Magazine published by Reign Communication. Though not yet aggressive on the cyber/online front, the farm should begin to more aggressively utilize the internet to reach out to as many consumers as possible, such as, for instance through a blog, as well as on social media outlets/hubs such as Facebook, Twitter and Linkedin. Again, plans will be formulated towards such ends. To its’ credit ad commendation, the farm is currently publishing in key periodicals such as the Agricultural Show Magazine alluded to/mentioned at the very end of chapter one. Plans should also be slated to be put under way to create a column in the newspapers, such as The Sunday Mail, etc. At present, sales persons are also going to be trained on public relations and good customer care. The farm will also use local farmer’s shows as well as the annual Harare Agricultural Show to exhibit, gain visibility and physically promote the products.

4.4.4 Product strategy:

The strategy will be enhanced by good grading and presentation techniques. The product must be in good quality and meet the customer expectations and endeavors will be made to do so.

4.4.5 Branding strategy:

A “Brand” is a term, product or service name, design, symbol or some other feature that distinguishes a product and identifies it with one’s organization. All the farm products will be packed in packaging bearing FAVCO’s logo. Furthermore, most all of FAVCO’s vehicle fleet have some sort of logo or identifying paint finish to help emboss the Ariston Holdings Ltd. footprint in people’s minds.

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4.5 Marketing activities: Buying of inputs Inputs are going to be sourced from different input suppliers. Some of the inputs will be bought with cash and some on credit to be repaid at the end of the season it is hoped.

Grading This will be done by uniformly sorting out products according to specifications. Tobacco will be graded according to leaf position, quality, and colour. Potatoes will be graded basing on size and quality. Grading is done for the purposes of better pricing the products, as presentable presentation of farm produce tends to attract higher prices and therefore, greater margins.

Packaging Packaging is done to entice the customer to buy the farm products and as a way to preserve the quality of a product. This will be done for handling, advertising of the FAVCO logo as well as product protection purposes. Packaging is also done to facilitate easier transportation of farm produce as well as reducing storage cost. Potatoes will be packed to suit affordability of different sections of the society in 2kg, 5kg, 10kg and 15 kg packs respectively.

Transportation Transportation enables one to reach markets flung far and wide, hither and yon. The cost of transport depends upon bulk relative to distance and on value relative to bulk. The farmâ&#x20AC;&#x2122;s trucks will deliver potatoes and broilers to different destinations while a 35-ton truck will deliver wheat and maize to the Grain Marketing Board

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4.6 Conclusion:

Marketing has become a very important part of the business. The organisation will work tirelessly to maintain its strengths whilst finding solutions for its weaknesses, penetrating new opportunities and monitor the threats. All the marketing strategies will be given proper attention so that we will be able to compete and grow as a modern commercial farmer.

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CHAPTER 5: FARM FINANCIAL PLAN

5.1: Introduction:

In this chapter, one should expect to find the financial quantification, summation and substantiation/rationale/justification of all that was discussed in the previous four chapters. It will begin by looking at a summary of the projected production at the farm, assess and justify the capital expenditure proposed, proceed on to assess and justify variable costs, as well as fixed costs. From there, the gross margins of each respective farm enterprise will be delved into, followed by summaries of the income statement, balance sheet, as well as consolidated yearly cash-flow statement.

5.2 Summary of Production Plan: Below, the reader will find a table summarizing the enterprises and their scale of expected production at Kent Estate for the 2014/15 agricultural season: Table 17: Showing a summary of the farm production and expected financial return per enterprise at Kent Estate:

In the above table, it is plain/evident to see that all the enterprises to be assumed at the estate will each chip in or positively contribute to the overall bottom-line or profitability of the 78

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farm, with commercial maize assuming the largest allocation of land usage, and in turn, contributing the largest amount of profit on a face-value basis. However, subsequent analysis to soon follow will unveil the true cash-cow of the estate. However, commercial maize is assuming the largest allocation of land as it fits in well in rotation with a large number of crops and is not too input intensive as compared to, say, commercial potatoes, which, as the table above, shows, it has a total variable cost just behind that of commercial maize at almost one â&#x20AC;&#x201C;seventh of the acreage.

5.3 Capital Costs: The table below gives a coherent presentation/synopsis of the outlay to be expended over the next half decade at Kent Estate to both maintain and increase the production and profitability levels at the estate.

Table 18: Showing the capital outlay needed to both maintain and raise the levels of production and productivity at Kent Estate.

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As was touched on in chapter 3, the spread of capital expenditures is due to the fact that this student would like to build up monetary reserves from which to begin servicing the capital loan. Futhermore, the purchase of tillage implements in the second year of the five year period in consideration here, will help increase the scale of production and thereby hopefully play into building capacity to service the bulk of the capital loan when it is eventually saddled.

5.4: Variable Costs Table 19: Being a table showing the variable costs to be incurred at Kent Estate over the course of the 2014/15 agricultural season:

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Seed Fertilizer Soil Conditioners Herbicides 1% Fattening Steers; 60,750.00; 5% Fattening Meal; 9,450.00;Fumigant Seed; 165,480.00; 14% Poultry Mortalities; 50,000.00; 4% Pesticides Tent; 8,060.00; 1% Labour Shavings; 1,210.00; 0% Fuel Poultry Disinfectants; 2,625.00; 0% Transport cost Broiler Feed; 164,200.00; 14% Packaging Day Old Chicks; 50,000.00; 4% Electricity Fertilizer; 277,063.54; 23% Coal; 27,000.00; 2% Medicines and Vaccines Medicines and Vaccines; 25,400.25; 2% Coal Soil Conditioners; 4,200.00; 0% Electricity; 1,762.50; 0% Day Old Chicks Packaging; 39,627.50; 3% Herbicides; 25,606.00; 2% Broiler Feed Transport cost; 3,745.00; 0% Fumigant; 12,000.00; 1% Poultry Disinfectants Fuel; 82,913.60; 7% Pesticides; 46,192.71; 4% Shavings Labour; 124,550.14; 11% Tent Poultry Mortalities Fattening Steers Fattening Meal

Figure 8: Being pie chart showing a thorough analysis of total variable costs incurred over the course of the 2014-15 agricultural season at Kent Estate.

As may be seen from the table and figure and table above, the productive inputs of seed, fertilizer and broiler feed together account for 51% of the total variable costs. This is a good portent as it shows that precious capital resources are being channelled – “ploughed” as it were – into productive endeavours which will play into the farm becoming profitable.

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5.5 Fixed costs: Table 20: Being total fixed costs incurred at Kent Estate over the course of the 2014-15 agricultural season.

Analysis of TFCs

FIXED COSTS

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