Location
The operation is situated in the town of Kirkwood approximately 75km North of Port Elizabeth.
Size
The production unit is made up of 3 separate farms comprising a cumulative 5 title deeds, with 2 farms being adjoining and the third a mere 1,5km away, giving a total area of 44.2104ha.
Description
The 3 farms have been under the current ownership and management for a number of years and during this time a tremendous amount has been invested in maintaining the orchards optimally, as well as all the irrigation systems and fertigation equipment. All three farming units are similar having level topography and are equally suitable for irrigation purposes with a mean sea level of between 89 – 100m. The one farm has the Sundays River as its western boundary with
approximately 325m of river frontage.
Irrigation on the citrus is all via drip or micros and at the time of viewing all trees appeared in excellent health. This is largely a result of the good management of all the orchards (31.56ha) as well as the continual and systematic attention to overall soil health. The 1.5ha block of lucerne is under permaset irrigation.
The farming activities on the 3 units can be best summarised as follows:
"Unit 1", this farm has +- 10.76ha of citrus orchards (lemons & oranges), with a 1.5ha block where Lucerne is planted.
"Unit 2", this unit is developed with +- 4.52ha of citrus orchards (Navels & Valencia's).
"Unit 3", is developed with +- 16.23ha of citrus orchards, developed with Lemons and Oranges in various stages of production.
Citrus Production
Of the effective 31.56ha under fruit, most trees are in full production, with the Midknight Valencias that were planted over the 2020 – 2021 period set to have an increase in production over the next few years. Production is spread across a total of 5 citrus cultivars comprised of different selections. This offers both the security of a range of marketable product as well as a prolonged, and hence more efficient, packing season. The breakdown of the orchard stats are below:
Of the trees currently in production:
5.3% are under 5 years
20.5% are between 6 – 10 years old
10.3% are between 11-15 years old
27.3% are between 16 and 25 years old
36.5% are older than 25 years old
With good root management the trees are expected to remain in peak commercial production. The effective production life of trees is given as anything from 25-50 years depending on root stock and management.
Tree Totals
Qty Ha
Late Navels 1942 2.99
Navels 3973 6.18
Midknights 4701 6.65
Delta 1948 3.54
Lemons 6982 11.62
Grapefruit 430 0.58
Totals 19976 31.56
Detailed production figures are available on request for each of the 3 farm units over a 3 year period (2021 – 2023), including the breakdown pertaining to the various cultivars as per the below example for 2021:
Navel 629 crates = 252 tons
Navel late 172 crates = 69 tons
Lemons 1412 crates = 565 tons
Midknight/Delta 901 crates = 360 tons
Grapefruit 66 crates = 26 tons
Totals 3180 crates = 1272 tons
The total number of cartons for the 2021 to 2023 period is as per below:
2021 = 77892 cartons (55965 exported i.e. 72%)
2022 = 80610 cartons (62384 exported i.e. 77%)
2023 = 67544 cartons (52182 exported i.e. 77%)
Rainfall / water
The farm falls in a transition rainfall area with an annual average of 315mm which can be expected over a 12 month period and predominantly in the summer months. This is supplemented by 396 000 Cu M of scheduled irrigation water (44ha @ 9000Cu M / annum). The existing 31.56ha of orchards plus 1.5ha of lucerne have a combined water requirement of 321 503 Cu M leaving a good surplus of 74 497 Cu M. Very few farming operations have a surplus water allocation, giving expansion potential should one possibly shift this surplus water to another property in the area for example.
There are 2 holding dams on this farming unit which are supplied by the canal system. The farm also has a freshwater well plus a 40 000lt underground storage tank as well as a few “Jojo” storage tanks.
Infrastructure
Quick summary:
"Unit 1", this farm has various structural improvements in the form of: a large single storey main farm house with attached outbuilding, a staff house, additional outbuilding, shed, pumphouse and butchery with coldroom.
"Unit 2", this unit has 2 x farm houses, with 2 x outbuildings and a covered patio area.
"Unit 3", this farm has one house, with one outbuilding, poison store and pumphouse as well as 2 x staff houses with an ablution building.
Additional info re the accommodation offering: the main residence consists of 5 bedrooms and various living areas plus there’s the staff unit. In addition, there are the three income-generating houses with one having 4 bedrooms and the other two each having 3 bedrooms.
The various farm portions are fenced off with standard cattle fencing, found to be in a fair to good condition.
Eskom power provides for all electricity needs with a total of 4 transformers (3 phase).
Legal and Staff Complement
There are no registered land claims over any of the titles concerned. The entire production unit is owned by a single trust. The farm is accredited with all the necessary requirements for export with this being done by the SRCC and numerous awards have been achieved for production volumes etc.
In addition to the SRCC who manages the farming unit, the farm employs a highly experienced foreman and 8 permanent utility labourers who, between them operate all the vehicles and machinery on the farm.
Conclusion
This is a well developed operation with good quality citrus orchards under irrigation, found to be in good overall condition, with substantial infrastructure plus generally speaking, a very well planned and profitable farming operation.
Price
R 33 million + VAT at the applicable rate
The 2024 crop does not form part of the sale agreement, and the timing of the transfer will influence the overall price paid. The movable farm equipment is specifically excluded from the sale. Some of the equipment could form part of a separate transaction, while other will be retained by the seller. The SRCC pack rights are also sold separately.
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