Thesis (MBA)--Stellenbosch University, 2004. / ENGLISH ABSTRACT: Agriculture remains an important industry in South Africa. Although primary
agriculture contributes only 4.5% to the Gross Domestic Product (GDP), the
related agrifood industry contributes an additional 9%. Furthermore agriculture is
a major provider of employment, especially in rural areas where more than 50%
of the local community depends on agriculture.
In general Black Economic Empowerment (BEE) is accepted as a precondition to
a stable and prosperous South Africa. As a result thereof various sector plans
have been negotiated and at this stage agriculture is busy with final inputs
towards the Agricultural BEE plan to be finalised in December 2004.
Ownership and management transformation however are difficult for most
farming enterprises as most of them are small family enterprises. Therefore they
will support BEE agricultural input providers to support BEE. According to the
BEE Score Card it will be possible to adhere to BEE requirements without
adhering to ownership and management requirements provided that good scores
are obtained from the other aspects such as skills development, BEE initiatives,
preferred suppliers and other.
The transfer of ownership also has significant financial implications. It is
estimated that R65 billion will be needed to achieve the proposed objectives of
30% agricultural land and 35% of agricultural businesses in the RSA to be
transfered to black people by 2014. However, only R703 million has been spend
on land restitution during the past year and only R933 million budgeted for
2004/2005.
The feasibility of processed oats to be marketed as rolled oats, quick oats and
muesli as such a BEE initiative has been evaluated in this study project as a joint
venture between Agricol and SSK. Agricol (seed company) has cereal type oat varieties whilst Sentraal Suid-Koóperasie (Farmer Cooperative) has good grain
handling infrastructures in the major oat producing areas. This project will
provide both counterparts with the opportunity to integrate vertically, diversify
sources of income (away from primary agriculture), empower previously
disadvantaged individuals in both organisations and to meet BEE objectives.
This study indicates that such a BEE initiative is feasible and offers a very good
return to participants. Extremely high hygene and quality assurance standards of
the processed product, the marketing thereof and market access has been
identified as critical performance areas. At a dehulled percentage of 60% and
price paid for oats of R1000 per ton, 600 ton of the processed oats will have to be
sold annually to ensure a profit of R140 000 per annum.
Subject to the budgeted figures, the project has the potential to realise a
R843000 profit in year 5. The value of the new company based on the
discounted cash flow method, will be R2.7 to R3.9 million. Due to the initial
losses and associated negative cash flows, the value is primarily represented by
the terminal value of the company after 5 years.
Current shareholders require an expected return on capital of 15%. Internal rate
of return for the project is 42% which is much more that the hurdle rate. The
intented BEE initiative therefore definitely adds value to shareholders. Important
people issues like shared vision, values, expectations, trust and commitment
needs to addressed continuously to realise the potential of the project. Strong
and skilled leadership will also play a decisive role as important decisions will
have to be taken continuously. / AFRIKAANSE OPSOMMING: Landbou bly 'n beIangrike industrie in Suid-Afrika en alhoewel primêre-landbou
slegs 4.5% van Bruto Binnelandse Produk (BBP) bydra, word die bydrae van die
landbouverwante agrivoedsel industrie op 'n addisionele 9% beraam. Landbou
is verder 'n belangrike werkverskaffer, veral op die platteland waar meer as die
helfte van die bevolking soms van landbou afhanklik is.
Daar word algemeen aanvaar dat Swart Ekonomiese Bemagtiging (SEB) 'n
voorvereiste tot 'n stabiele en welvarende Suid-Afrika is. In die lig hiervan is
verskeie sektor SEB handveste alreeds onderhandel en die landbousektor is tans
besig om insette te lewer ten einde die landbou handves teen Desember 2004 te
finaliseer.
Aangesien meeste boerdery ondernemings egter klein familie ondernemings is
wat moeilik eienaarskap en bestuurstransformasie kan akkomodeer, sal hulle
SEB landbou inset verskaffers ondersteun om sodoende SEB te ondersteun.
Volgens die SEB telkaart sal dit vir ondernemings moontlik wees om aan SEB
vereistes te voldoen alhoewel daar nie noodwendig aan eienaarskap en
bestuursvereistes voldoen is nie, maar wel goeie tellings op die gebied van
vaardigheidsontwikkeling, SEB inisiatiewe, voorkeurvoorsiening en ander fasette
behaal is.
Die oordrag van eienaarskap het ook omvattende finansiële implikasies. Daar
word beraam dat ongeveer R65 miljard benodig word om die voorgestelde
doelwitte van 30% landbougrond en 35% van landboubesighede in die RSA teen
2014 aan swart mense oor te dra. Hierteenoor is slegs R703 miljoen die
afgelope jaar aan grondhervorming bestee terwyl die begroting vir 2004/2005
R933 miljoen bedra. Die lewensvatbaarheid van verwerkte hawer wat in die vorm van gerolde hawer,
hawermout en muesli bemark sal word, is as SEB inisiatief en gesamentlike
projek tussen Agricol en Sentraal Suid-Koöperasie, in hierdie werkstuk
ondersoek. Agricol (saadmaatskappy) beskik oor ontbytgraan tipe hawer
kultivars en Sentraal Suid-Kooperasie het 'n goeie graanhanterings infrastruktuur
in die hawer produksie gebiede. Die projek sal aan beide medewerkers die
geleentheid bied om vertikaal te integreer, inkomste te diversifiseer (weg van
primêre landbou), voorheen benadeelde individue in beide instansies te bemagtig
en beide instansies help om aan SEB doelwitte te voldoen.
Die studie het aangedui dat so 'n SEB inisitief wel lewensvatbaar is en goeie
opbrengste aan al die deelnemers sal bied. Uitermate hoë higiëne en
kwaliteitstandaarde van die verwerkte produkte tesame met die bemarking en
marktoegang is as belangrike kritiese prestasie areas geïdentifiseer. Teen 'n pit
tot dop verhouding van 60% en gemiddelde aankoopprys van R1000 per ton vir
hawer, moet ongeveer 600 ton verwerkte hawer jaarliks verkoop word om 'n
wins van R140 000 per jaar te verseker.
Gegewe die begrote syfers, het die projek die potensiaal om R843 000 wins in
jaar 5 te genereer. Die waarde van die nuwe maatskappy, gebasseer op die
verdiskonteerde kontantvloei metode, beloop R2.7 tot R3.9 miljoen. As gevolg
van die aanvanklike verliese en gepaardgaande negatiewe kontantvloeie, lê die
waarde van die maatskappy egter hoofsaaklik in die eindwaarde na 5 jaar.
Huidige aandeelhouers se verwagte opbrengs op kapitaal is 15%. Die interne
opbrengskoers van die projek beloop 42% wat dus hoër as die drempelwaarde
is. Die beplande SEB inisiatief voeg dus bepaald waarde toe vir aandeelhouers.
Belangrike mensekwessies soos dieselfde visie, waardes, verwagtinge, vertroue,
verbintenis en toewyding sal baie aandag moet geniet om van die potensiaal 'n
werklikheid te maak. Sterk en bekwame leierskap sal ook 'n deurslaggewende
rol speel aangesien gewigtige besluite voortdurend geneem sal moet word.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/50040 |
| Date | 03 1900 |
| Creators | Kotze, T. N. (Theunis Nicolaas) |
| Contributors | Du P. Smith, J., Stellenbosch University. Faculty of Economic & Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | af_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Format | 57 p. : ill. |
| Rights | Stellenbosch University |
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