Description

The Farm Company is situated in the Western Cape, in Cape Town, South Africa.
The Farm Company includes the largest operational dairy farm in the Western Cape, a coveted farm, and ongoing maize, wheat, grape farms and a wine operation.
Collectively, the Farm’s size and total area is around 7000 hectares, which has been valued by a Professional Evaluator at $100mn.
The Owner applies a policy of using almost all cash surpluses to expand and develop the Farm income potential by purchasing new machinery and equipment and develop farm infrastructure (Irrigation works and buildings).
All the farms are very well integrated with good wheat ground and water is available as well.

Dairy
The Company’s dairy operation is a world-class operation.
A milk supply off-take agreement is currently in place with a national South African milk producer that has another 6.5 years to run before the option to renew the contract is exercised.
Milk income is budgeted at ~$19mn per year ($1.6mn) per month.
For every 10c/L increase in the Milk Price, gross milk income increases by $340,000 per year.
About 3.85mn liters of milk is produced per month from ~8500 Holstein cows. In total the Company has 8500 Holstein cows on the farm, 4000 in milk production and the balance are young heifers and dry cows.

Cattle Sales
Budgeted income of $95k per month from the sale of about 160 cows at $593 per cow.
Additional income from cattle sales at $5k per month from the sale of about 150 bull calves at $35.

Wheat
Budgeted income of $275,000 per month.

Transaction:
The Owner is open to selling majority or 100% of the Farm Company at a price of $68mn.

Posted Oct 26, 2016

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