1. NCERA-FARMS PTY LTD MANDATE Ncera Farms (Pty) Ltd is a public company listed in schedule 3B of the Public Finance Management Act, 1999 (Act 1 of 1999) with the Department of Agriculture, Forestry and Fisheries as a sole shareholder. The mandate granted by the shareholders, the objectives of the entity is to provide extension, mechanical services, training and agricultural support services to the farmers settled on Ncera Farmland as well as the neighbouring communities.

2. Table of Contents 1. Background 2. Ncera Business Model 3. Implementation Structure 4. Ncera Capital Budget 5. Ncera Operational Budget 6. Cost Benefit Analysis 7. Risk Analysis 8. Conclusion

3. 1. BACKGROUND The main aim of Ncera Farms (Pty) Ltd is to contribute towards an industry focused farm management training, farmer support services and the design of franchise type agricultural business models for farmers in general and beneficiaries of land and agrarian reform in particular within the immediate catchment area of the centre. Accordingly, Ncera’s interventions are geared towards human capacity development, skills upgrading, and income generation, in a practical, hands-on fashion. The centre is situated in the Welcome Home farm in the Amathole district of the Eastern Cape.

4. Background Cont…. The entity is surrounded by nine villages. The neighboring villages have a population of ± 18 000 and are under Chief Jongilanga. There are five primary schools and three high schools. The unemployment rate of the area is estimated at 80%.

5. 2. NCERA BUSINESS MODEL Central unit – the business nucleus with Beef and Goats as the core enterprises. Mechanization unit training communities Farmers and communities are being assisted by the entity in terms of advice and business models Skills transfer to small scale farmers on various livestock and crop production

6. NCERA BUSINESS MODEL – Cont… Central Nucleus Unit- Beef/Goats Commercial Farmer / Community Vegetable/crop production Skills transfer Mechanization

7. 3. Implementation Structure DG / CFOMinister of DAFF Portfolio Committee Management Board Annual Report- Turnaround Strategy Infrastructural Capital Budget Business Plan

8. 4. Ncera-Capital Budget 2013/14 - R2 465 000 2014/15-R3 863 000 2015/16-R3 190 000 Total-R9 518 000

9. 5. Ncera-Operational Budget 2013/14 -R5 238 450 2014/15-R5 468 873 2015/16-R5 742 316 2016/17-R6 029 432

10. Beef & Goats Enterprise A 6 months old Weaner Goats for Farming purposes

14. Vegetables Production & Processing

15. 6. Costs –Benefits -Analysis Costs Watering points Fencing De-bushing Breed herd Costs Bulls herd Costs Tractors Board remuneration, etc Benefits Job creation Local Economic Growth Farmer Support & Extension Services Rural Livestock improvement programme Access to Vet services Easy access to produce – (vegetables) to the communities

16. 7. Risk Factors  POTENTIAL RISKS 1.Squatters 2.Un-Attendant Villagers 3.Animal diseases 4.Lack of community projects 5.Lack of Funding  MITIGATING FACTORS 1.Involvement of Stakeholders, Municipality and Traditional Leadership 2.State Vet and out sourcing 3. Development of small projects and gardens 4.Department of Agriculture, Forestry and Fisheries

17. 8. Conclusion Ncera has potential if funded/recapitalization Involvement of all Stakeholders High expectations from the Communities Old machinery,Tractors,high repair cost 10 Farmers leasing land(2,200ha)unutilized Non profit oriented Government Entity Securing Jobs for Communities, high unemployment rate.